In this article, we'll discuss information about the SpiritSwap project and the SPIRIT token.
In this article, we will discuss:
What is Spirit Swap?
Spiritswap.finance is a decentralized exchange (DEX) on the Fantom Opera platform. Its design and structure is based on the Uniswap constant-product market maker (AMM). In an AMM, liquidity providers simply deposit a token pair and an algorithm automatically creates markets for the token pair. Traders can easily exchange between tokens on AMM and get guaranteed rates for the swaps. Each swap on SpiritSwap incurs a fee, which is distributed to liquidity providers and $XSPRT token holders.
DEX built on the Fantom platform?
Fantom can offer a lot as a smart contract platform:
- Low gas rates
- short block times
- More decentralized
- Compatible EVM
Fantom already has AMM (SushiSwap), money-market (Cream) and stablecoin AMM (Curve). However, each of these protocols has low liquidity (on Fantom). Why? Because incentives like agricultural production do not exist! Apparently, SpiritSwap was born for this.
How does the SpiritSwap platform (SPIRIT) work?
The platform has the following features:
1. Exchange / swap
SpiritSwap offers users a simple way to exchange tokens on Fantom through automated liquidity pools. In an exchange, a token is sold to buy another token. The swap rate is determined by the AMM with the equation:
Where x = the number of $AAA tokens, y = the number of $BBB tokens and k is a constant. The trader is charged a 0,3% fee to make an exchange.
2. Provides Liquidity
SpiritSwap offers users a simple way to provide liquidity for tokens on Fantom through automated liquidity pools (LPs). To become a liquidity provider on SpiritSwap, the user must deposit equal amounts of two tokens. In return, they receive SPIRIT-LP tokens (SpiritSwap Liquidity Pool tokens).
SPIRIT-LP tokens represent a proportionate share of a given LP and liquidity providers can claim their underlying tokens at any time. Liquidity providers receive a fee of 0,25% for each exchange made in their pair. The 0,25% fee is added directly to the LP, increasing the value of the SPIRIT-LP tokens. Liquidity providers can also participate in agricultural production with supported LPs.
3. Yield Farming Program
Farming on SpiritSwap is used to encourage liquidity on DEX. SpiritSwap will distribute $SPIRIT tokens to liquidity providers on selected farms. In Figure 1, deposits from a liquidity provider supported SPIRIT-LP tokens for the agricultural contract.
The farm contract issues 10$ SPIRIT/block and the new farmer has 100 of the 400 SPIRIT-LP tokens in the farm contract. Therefore, the liquidity provider will be earning 2,5$ SPIRIT tokens per block.
SpiritSwap's goal is to bring liquidity to Fantom, so we will prioritize supporting agricultural rewards for other protocol tokens that are being built into Fantom. However, eventually the farms supported and their emissions will be decided by the governance.
4. Extra Features
While inSPIRIT is being developed, we are also developing some features in parallel:
Zapper: Zapping from token to LP and between LPs.
- Order limit: self-explanatory, but for those who don't know: https://www.investopedia.com/terms/l/limitorder.asp
- price charts: price charts for advanced traders. These charts also have trading tools. You can find them on the trade page.
- portfolio page: A one-stop shop for all your data/information, perfectly displayed on SpiritSwap.
- lossless lottery (⚙️ Coming soon): You know what this is!
- baby soully (⚙️ Coming Soon): A Baby Spirit token 🙂
SPIRIT Token
- Ticker:SPRT
- Blockchain: MTF
- Maximum supply: 1.000.000.000 $ SPRT
- Distribution: 80% agricultural production, 10% airdrop, 10% development fund
- Initial agricultural emissions: 40 SPRT / block
- Emissions will decrease over time and will be subject to change through governance
SPIRIT Cryptocurrency Price
- Maximum value: US$ 0,370537 -21.3% Aug 30, 2021 (At the time of publication of this article)
- Minimum value: US$ 0,01623641 1695.8% Jul 20, 2021 (approximately 1 month - At the time of publication of this article)
