Home · Blog · DeFi & Trading · · Updated Nov 18, 2025 · 6 min read
Apollo Protocol: Lending and Borrowing on the SORA Network
Apollo Protocol brings lending and borrowing to the SORA Network, letting users supply collateral, borrow assets, and participate in APOLLO governance.
Apollo Protocol is a lending and borrowing platform built by the Ceres team for the SORA Network, adding a money-market layer alongside tools like Polkaswap and Demeter Farming.
TL;DR: Apollo Protocol is the first lending and borrowing platform on the SORA Network, developed by the Ceres ecosystem. It lets users deposit assets to earn yield, borrow against collateral without selling, and participate in on-chain governance through the APOLLO token — using transparent, utilization-based rates that balance risk and liquidity across the network.
Editor’s note: As of May 2025, Apollo Protocol remains deployed on the SORA Network as a functioning lending and borrowing protocol created by the Ceres team. Recent SORA ecosystem updates include runtime and compatibility fixes for Apollo-related borrowing functions. Users should always check the latest Ceres announcements and SORA ecosystem updates for accurate details on liquidity, supported assets, and risk conditions before participating.
What Is Apollo Protocol?
Apollo Protocol introduces decentralized lending and borrowing to the SORA Network, marking the first money-market dApp in its ecosystem. Built by the Ceres team, Apollo allows users to:
- Deposit assets to earn passive income through lending rewards.
- Borrow assets by posting collateral and unlocking liquidity without selling holdings.
- Earn and govern with the APOLLO token, which powers staking, farming, and treasury governance.
This model strengthens SORA’s on-chain economy by improving liquidity, capital efficiency, and integration potential with other DeFi products like Polkaswap.
Getting Started on SORA
Apollo runs natively on the SORA Network. To interact, you’ll need a compatible wallet:
- Fearless Wallet (recommended): iOS/Android app designed for SORA, Polkadot, and Kusama networks.
- Polkadot-JS Extension: browser wallet for creating and managing SORA accounts.
- HASHI Bridge: for moving assets between Ethereum and SORA.
Supported Apollo assets have varied over time based on liquidity and governance. As of November 2024 updates, supported assets have included DAI, ETH, APOLLO, and KSM, with listings governed by community decisions and subject to change as liquidity conditions evolve.
For a broader view of XOR’s role in the network economy, see our guide Why SORA XOR Matters.
For technical background, see our SORA v3 guide.
How Apollo Works
1. Deposit and Borrow
Depositors supply assets into liquidity pools and earn yield through:
- Fixed APOLLO emissions (distributed across pools for 12 months)
- Variable interest income from borrowers’ repayments
Borrowers post collateral to access liquidity. Each asset has defined risk parameters—Loan-to-Value (LTV), Liquidation Threshold (LT), and Reserve Factor (RF)—that determine borrowing capacity and liquidation risk.
2. Health Factor (HF)
Health Factor (HF) measures the safety of a position:
- HF > 1: safe
- HF < 1: triggers liquidation
Liquidations sell collateral to repay the loan once HF falls below 1. Apollo’s documentation commonly references liquidation around 85% of collateral value, but thresholds vary by asset and may be updated through governance.
3. Rewards Overview
For Depositors:
- Fixed reward – ongoing APOLLO emissions.
- Interest reward – a significant portion of borrower interest funds APOLLO buybacks, redistributed to lenders.
- Liquidation reward – proceeds from liquidated positions shared with depositors.
For Borrowers:
- May earn APOLLO incentives depending on configuration.
- Pay interest rates that adjust dynamically based on utilization.
Dynamic Interest Model
Interest rates in Apollo are determined by asset utilization (U):
Utilization Rate: U = Total Borrows / Total Liquidity
As U approaches 100%, liquidity tightens and borrowing rates rise to encourage repayments and new deposits.
Each asset has an optimal utilization point (Uₒₚₜ) where rates steepen beyond that level:
- ETH: Uₒₚₜ ≈ 65%
- DAI: Uₒₚₜ ≈ 90%
This dual-slope model helps balance liquidity across markets.
Reserve Factor & Revenue Distribution
Apollo’s Reserve Factor (RF) decides how loan interest and liquidation proceeds are split. Over time, Apollo documentation and community calls have referenced configurations such as:
- GitBook (2024): 60% APOLLO buyback → Treasury, 20% CERES buyback, 20% development.
- AMA (June 2024): 80% Treasury, 10% development, 10% CERES buyback.
Exact ratios may change through governance, so users should reference the latest official documentation.
These reserves support liquidity incentives, treasury operations, and long-term development.
APOLLO Tokenomics
| Allocation | Amount (APOLLO) | Share | Distribution |
|---|---|---|---|
| Max Supply | 1,000,000 | 100% | — |
| Initial Liquidity | 100,000 | 10% | Locked for 100 years |
| XOR Airdrop | 50,000 | 5% | Distributed at TGE (snapshot closed) |
| CERES Airdrop | 50,000 | 5% | Distributed at TGE |
| Treasury | 300,000 | 30% | Governance managed |
| Lenders Rewards | 200,000 | 20% | 12 months |
| Borrowers Rewards | 100,000 | 10% | 12 months |
| Farming Pool | 150,000 | 15% | 12 months |
| Staking Pool | 50,000 | 5% | 12 months |
Emissions occur block-by-block (~every 6 seconds). As of March 2024 ecosystem updates, the XOR and CERES airdrop claim period has ended; any unclaimed tokens were redirected to the Apollo treasury according to Ceres documentation.
Governance & Community
Apollo follows a 1 APOLLO = 1 vote governance model, where token holders can influence:
- Treasury and reserve management
- New asset listings
- Protocol upgrades and reward adjustments
This allows the protocol to evolve through community participation as the SORA ecosystem matures.
Why Apollo Matters to SORA
SORA’s financial stack includes Polkaswap (DEX) and HASHI Bridge (interoperability). Apollo adds the money-market layer, enabling:
- On-chain credit markets
- Cross-asset liquidity growth
- Composability with other SORA DeFi tools
Apollo was developed for the SORA v2 network and continues to function during the ecosystem’s broader transition toward SORA v3 and Hyperledger Iroha-based infrastructure.
For newcomers, see our DeFi crash course for key concepts.
Quick Start Checklist
- Install Fearless Wallet or Polkadot-JS Extension.
- Bridge assets to SORA via HASHI.
- Deposit, borrow, and track your Health Factor (HF).
- Earn APOLLO rewards and participate in governance.
FAQs
Is Apollo officially part of Ceres?
Yes. According to Ceres documentation, Apollo was launched by the Ceres team as a core DeFi protocol within the SORA ecosystem.
Which assets are supported?
Supported assets have historically included DAI, ETH, APOLLO, and KSM. Listings are determined by governance and available liquidity, and may change over time.
How are rewards distributed?
Rewards come from APOLLO emissions, interest-based buybacks, and liquidation proceeds, with exact splits determined by the current reserve factor configuration and governance decisions.
What happens if my Health Factor drops below 1?
Your collateral becomes eligible for liquidation. Adding collateral or repaying debt raises HF above 1 to reduce liquidation risk.
Is the airdrop still open?
No. The XOR and CERES snapshot claim period ended in March 2024, and unclaimed tokens were redirected to the Apollo treasury.
How does Apollo compare to Aave or Compound?
Apollo works similarly to major DeFi money markets but is native to the SORA Network and integrated with Polkaswap and other SORA tools.
What are the main risks?
Risks include smart contract vulnerabilities, liquidation when HF falls below 1, volatility in collateral value, governance or parameter changes, and smaller liquidity compared to major DeFi markets. Always research before participating.
How does liquidation work?
When HF falls below 1, liquidators may repay part of your debt in exchange for collateral at a discount (commonly around 85%), helping maintain protocol solvency.
What if Ceres development continues to slow?
Apollo’s smart contracts remain active on-chain, but new features or UI updates may progress more slowly unless community governance proposes changes.
How do I calculate borrowing capacity?
Borrowing capacity is generally (Collateral Value × LTV). Many users aim to maintain HF well above 1—for example around 1.5—for additional safety.
What’s the difference between APOLLO and CERES?
APOLLO governs and rewards the Apollo lending protocol, while CERES functions as the broader ecosystem token across multiple Ceres utilities and dApps.
Has Apollo Protocol been audited?
Apollo has undergone security reviews according to Ceres communications. Users should verify the latest reports and practice standard DeFi caution.
Sources
To learn more about Apollo and its role in the Ceres ecosystem, consult the latest official resources and SORA documentation:
If you’re new to DeFi, you can learn more about these concepts (lending, collateral, liquidation, and utilization) in our beginner-friendly guide, DeFi Protocols: A Beginner’s Crash Course.
Financial Disclaimer
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