Home · Blog · DeFi & Trading · · Updated Oct 18, 2025 · 5 min read
Apollo Protocol: Lending and Borrowing on the SORA Network
Apollo Protocol brings DeFi lending and borrowing to SORA, letting users earn, borrow, and govern with APOLLO tokens in a transparent, utilization-based system.
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:
Development activity from the Ceres team on SORA has slowed in recent months following ecosystem funding changes and the broader transition away from TBCD-based incentives. However, Apollo Protocol remains deployed on-chain and continues to serve as a key DeFi component within the SORA ecosystem, with active governance and documentation still available.
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 to create, import, or manage SORA accounts.
- HASHI Bridge: for moving assets between Ethereum and SORA.
Once connected, users can deposit supported assets such as DAI and ETH, with XOR expected through community governance.
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 how much can be borrowed and when liquidation occurs.
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, typically around an 85% threshold of collateral value.
3. Rewards Overview
For Depositors:
- Fixed reward – ongoing APOLLO emissions.
- Interest reward – 80–90% of borrower interest funds APOLLO buybacks, redistributed to lenders.
- Liquidation reward – proceeds from liquidated positions shared with depositors.
For Borrowers:
- Earn APOLLO incentives for participation.
- 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 sharply beyond that level:
- ETH: Uₒₚₜ ≈ 65%
- DAI: Uₒₚₜ ≈ 90%
This dual-slope model keeps liquidity balanced while discouraging overuse.
Reserve Factor & Revenue Distribution
Apollo’s Reserve Factor (RF) decides how loan interest and liquidation proceeds are split.
Two sources describe the current models:
- GitBook (2024): 60% APOLLO buyback → Treasury, 20% CERES buyback, 20% development.
- AMA (June 2024): 80% Treasury, 10% developers, 10% CERES buyback.
(The active ratio may change through governance proposals.)
These reserves sustain 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).
The airdrop for XOR and CERES holders has ended; unclaimed tokens were redirected to the Apollo treasury.
Governance & Community
Apollo follows a 1 APOLLO = 1 vote governance model, where token holders influence:
- Treasury and reserve management
- New asset listings
- Protocol upgrades and reward adjustments
This decentralized structure ensures the platform can evolve through community consensus as SORA’s ecosystem matures.
Why Apollo Matters to SORA
SORA’s financial stack already includes Polkaswap (DEX) and HASHI Bridge (interoperability). Apollo adds the money-market layer, enabling:
- On-chain credit markets
- Cross-asset liquidity growth
- Composability for future SORA dApps and CBDC research
Together, these form the foundation of a self-sustaining, decentralized financial system.
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. Apollo was launched by the Ceres team as a core DeFi protocol within the SORA ecosystem.
Which assets are supported?
ETH and DAI are currently supported; XOR may be added through governance.
How are rewards distributed?
Lenders and borrowers earn block-by-block APOLLO emissions, plus yield from interest-based buybacks.
What happens if my Health Factor drops below 1?
Your collateral becomes eligible for liquidation. Add more collateral or repay debt to restore HF > 1.
Is the airdrop still open?
No. The XOR and CERES snapshot claim period has ended.
How does Apollo compare to Aave or Compound?
Apollo operates similarly but is native to the SORA Network, integrated with Polkaswap and governed by the SORA community. Liquidity is smaller, but it showcases DeFi innovation beyond Ethereum.
What are the main risks?
Risks include smart contract vulnerabilities, liquidation risk (HF < 1), reduced development activity from Ceres, and limited liquidity compared to larger DeFi markets. Always research before participating.
How does liquidation work?
When HF < 1, liquidators can repay part of your debt and receive collateral at a discount (~85% of market value). This maintains protocol solvency.
What if Ceres development continues to slow?
Apollo’s smart contracts remain functional. Governance allows the community to propose future upgrades, though new feature releases may be slower.
How do I calculate borrowing capacity?
Borrowing capacity = (Collateral Value × LTV). For safety, maintain HF > 1.5.
What’s the difference between APOLLO and CERES?
APOLLO governs and rewards the lending protocol; CERES powers the broader Ceres DeFi ecosystem across SORA.
Has Apollo Protocol been audited?
Apollo has undergone audits, but users should verify official reports through Ceres channels and practice standard DeFi caution.
Sources
Financial Disclaimer
- sora
- apollo-protocol
- ceres
- +8 more