Unlocking Bitcoin Liquidity on Solana: Introduction to APOLLO

APOLLO by Zeus Network
5 min readJan 18, 2024

In the fast-evolving landscape of blockchain technology, APOLLO, the first native and permissionless wrapper for Bitcoin to Solana, emerges as a groundbreaking initiative designed to revolutionize cross-chain interoperability without relying on conventional bridging mechanisms. APOLLO’s mission is clear: to enhance the seamless transfer of liquidity between the Bitcoin and Solana blockchains, all while upholding the principles of decentralization and trustlessness.

APOLLO is built on Zeus Network

Overview of Apollo and Zeus Network

The foundation of the project is based on the Zeus Consensus, which ensures decentralized governance without the need for trust, through the active participation of verifiers. The programmatic framework of APOLLO, which includes the Two-Way Peg (2WP) program, Liquidity Management Program, and Revenue Management Program, is strategically implemented on the Solana Virtual Machine (SVM). This contributes to the overall functionality and success of the project.

How APOLLO Allocates Cross-Chain Liquidity

Case 1 — Allocate with Apollo Custodian; Case 2 — Allocate without Apollo Custodian

Decentralized Liquidity Management

At its core, APOLLO stands as a beacon of decentralized liquidity management. With a commitment to operational efficiency, APOLLO serves as a custodian for zuBTC, an intrinsic Solana asset pegged one-to-one with Bitcoin. This custodial approach, owned by liquidity providers (LP), not only ensures efficient asset management but also opens avenues for yield generation within the APOLLO ecosystem.

Hot Reserve, Cold Reserve and Custodian

The management of the 1:1 peg is facilitated through a flexible Hot / Cold reserve design, where the upper limit of circulated zuBTC is intricately tied to the Total Value Locked (TVL) of SOL and LSD-SOL.

The Hot Reserve, subjected to a CheckLockTimeVerify (CLTV) mechanism, allows depositors to withdraw after a specified lock time expires, providing flexibility in managing long-term reserves. In contrast, the Cold Reserve is exclusively managed by verifiers and remains locked for an extended duration.

LPs have the flexibility to retain ownership of their zuBTC, but the allure lies in the prospect of earning yields in $ZEUS. This earning potential hinges on two key conditions: firstly, having BTC locked in the cold reserve, and secondly, entrusting zuBTC to APOLLO’s custody. The decision to withhold zuBTC from custody translates to foregoing potential rewards, emphasizing the symbiotic relationship between liquidity providers and the APOLLO protocol.

Decentralized Governance and Security

At the heart of APOLLO’s success lies the Zeus Consensus, a decentralized governance framework driven by Zeus verifiers. These verifiers, functioning as an independent consensus module, ensure the security and integrity of APOLLO’s operations. Security considerations are paramount, and Part 3 of this series will delve into the intricate details of the Zeus verifiers and their role within the broader APOLLO ecosystem.

Liquidity Management Program

Liquidity Management Program and Future Innovations

The APOLLO system is a testament to the prowess of decentralized finance applications. Guided by the Zeus Consensus and Zeus verifiers, the system incorporates functionalities such as Money Market and Automated Market Maker (AMM). As APOLLO charts its course, questions about the allocation of custody zuBTC to various DeFi protocols surface, prompting considerations of decentralized governance models and Liquidity Bribery Mechanisms for optimal allocation.

Rewards and Revenues

Looking ahead, APOLLO’s utility extends to its native token, offering participants the opportunity to stake and earn a share of DeFi fees generated within the ecosystem. This staking mechanism, coupled with a thoughtful tokenomics design, creates a symbiotic relationship between liquidity providers and the APOLLO protocol.

We are APOLLO: Shaping the Future of Cross-Chain Interoperability

APOLLO marks a significant milestone in the realm of blockchain innovation. By sidestepping conventional bridging approaches, APOLLO redefines the landscape of cross-chain interoperability. As we continue this journey into the heart of APOLLO, Part 2 will explore the intricacies of the Two-Way Peg mechanism and its technical underpinnings. Stay tuned as we unravel the layers of innovation within APOLLO, shaping the future of decentralized finance and cross-chain connectivity.

Roadmap

Q1 2024

  • Community Building
  • Documentation
  • Tokenomics
  • Testnet Launch
  • Testnet Participation

Q2 2024

  • Native Token Fair-launch
  • Mainnet Launch

How to Participate Now?

Actively engage with the community through the documentation, Twitter, Zealy, Discord, and Medium to earn future rewards. Promote wider adoption of APOLLO by collaborating with other projects and platforms.

APOLLO Native Token

The APOLLO native token is the core element of the ecosystem, providing staking benefits, governance access, and a share in DeFi fees. Essential for user engagement, it embodies APOLLO’s commitment to decentralized finance and cross-chain innovation.

Future Goals

  1. Be the Pioneer of Zeus Network: Serve as a pioneering example for product development on Zeus Network, inspiring and facilitating more developers to build innovative products within the Zeus Network ecosystem. Become a beacon for developers looking to contribute to and shape the future of blockchain technology through Zeus Network.
  2. Educational Initiatives: Launch educational initiatives to raise awareness about the unique features of APOLLO in different languages, AMAs, and creating educational resources to empower users and the community.
  3. Continuous Research and Development: Invest in ongoing research and development efforts to stay at the forefront of blockchain technology. Explore emerging trends and technologies that could further enhance the capabilities and offerings of APOLLO.

Connect with APOLLO ☄️

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APOLLO by Zeus Network

Cross-chain DeFi pioneer between Bitcoin and Solana, built on Zeus Network. ☄️ https://zeusnetwork.xyz/