The ApeCoin (APE) is a utility and governance token debuting with the Bored Ape Yacht Club (BAYC) NFT ecosystem. Recently, the token has been facing a declining market, with a fall in global NFT prices causing a decrease in its value over the course of the last three months. Currently in circulation are 36.86% out of the 1 billion total ApeCoin tokens, and based on APE on-chain data, holders may find it increasingly difficult to offload the token due to accruing losses.

In an effort to create a more desirable use case for APE, the ApeCoin DAO has proposed the launch of a Decentralized Exchange, or DEX, that would enable the trading of ERC-20 tokens with multiset pools providing liquidity providers with a fee for market-making activities and swap actions. The core functions of the ApeCoin DAO DEX are focused on APE token rewards for the liquidity providers, a feature that is expected to contribute to the reduction in trading costs for the ApeCoin holders, stakers, and new purchasers.

The vote on the ApeCoin DAO proposal has been set for May 18, and at the present time, 86.81% of the participants have expressed opposition, while the remaining 13.19% are in support. Whether or not this proposal is accepted is still left to be decided, but the liquidity rewards that ApeCoin could reap could prove to be a major asset, thus increasing the token's efficacy in the long term.



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