2021 is an epic year for blockchain platforms and their ecosystems of Dapps. Notably, the Fantom blockchain was ready to accelerate the ecosystem, introducing a new DeFi gang in crypto. To join the crypto game, SpiritSwap chose to be deployed on Fantom.
The article below will provide all the detailed information about SpiritSwap, including:
- What is SpiritSwap? How does it work?
- All the detailed information about Tokenomics and how to buy, store SPIRIT tokens.
- Is SpiritSwap a good investment?
What is SpiritSwap?
SpiritSwap is one of the first Decentralized exchanges (DEXs) built on the Fantom Opera Chain that the platform is based on an Automated Market Maker. It allows users to swap without any intermediary and centralized governance. Working with an AMM, Liquidity Pools automatically calculates the token price for two deposited tokens with high performance.
Whenever each swap is securely executed, traders will be charged a small fee of 0.3% as usual. And the fees are distributed to Liquidity Providers and inSPIRIT token holders to motivate the growth of the exchange platform.
SpiritSwap is expanding the exposure of the platform by introducing more DeFi products natively from the SpiritSwap team and from the collaborations with other protocols.
- Bridge to Fantom and vice versia: BNB, Ethereum, Polygon, Avalanche, and Arbitrum
- Lending/Borrowing: On the Ola Finance platform, $5M supply, and $1.2M borrow.
- Zap: Zap FTM to LP tokens at hands
- Bond: SpiritSwap integrated with OlympusDAO to provide bonds to its user base.
- winSPIRIT: A new token model for SPIRIT, generated by locking SPIRIT forever. This feature is expected to boost the SPIRIT price as the team will equip more utilities for winSPIRIT.
- Portfolio: This will track all your rewards and stats across the products of SpiritSwap.
- Ape Mode: The feature allows users to leverage their trade up to 3x, depending on the token selected.
- Merch Store: SpiritSwap sells gear, clothing, and accessories (mugs included).
How does SpiritSwap work?
To swap one token for another, SpiritSwap offers an easy way to do so via automated liquidity pools. Like other popular DEXs on other blockchains, the swapping rate is calculated by the constant-product equation x*y=k.
Moreover, the trading fee is 0.3% which is reasonable in comparison to other DEXs. To clarify, 0.25% of the fee goes to Liquidity Providers providing their tokens into pools. And the rest goes to the protocol vault responsible for the buy-back mechanism and distribution to inSPIRIT holders.
SpiritSwap’s Liquidity Pools require depositing equal values of both tokens. In addition, when providing liquidity to the preferred pool, users receive SPIRIT-LP (SpiritSwap Liquidity Pool tokens) in return. The SPIRIT-LP token represents the share of users in the liquidity pool, and they can claim tokens back anytime. When depositing in pools, users are charged a 1% fee.
inSPIRIT holders get boosted SPIRIT farming rewards. Farmers that hold inSPIRIT can receive a max boost of up to 2.5x in farming rewards. For instance, a user, with no inSPIRIT tokens, can farm FTM-SPIRIT for 100% APR. Whereas a farmer with inSPIRIT tokens can farm FTM-SPIRIT up to 250% APR.
What is SPIRIT Token?
On SpiritSwap, there are three types of tokens that users should be aware of as follows:
- SPIRIT: The utility protocol token running on the Fantom Opera Chain can be earned through farming. Alternatively, SPIRIT tokens can be locked to obtain inSPIRIT.
- inSPIRIT: The non-transferable governance token benefits users with additional tokens when holding it.
- SPIRIT-LP: Represents the proportional share of users in pools. SPIRIT-LP can be utilized to farm SPIRIT.
The SPIRIT token has lots of incentives so that they can strengthen SpiritSwap to acquire liquidity from DeFi users.
Detailed information about SPIRIT Token
SPIRIT Key Metrics
- Token Name: SpiritSwap Token.
- Ticker: SPIRIT.
- Blockchain: Fantom Opera.
- Token Standard: FRC-20.
- Contract: 0x5cc61a78f164885776aa610fb0fe1257df78e59b.
- Token Type: Utility.
- Max Supply: 1,000,000,000 SPIRIT.
- Circulating Supply: 310,169,964 SPIRIT.
SPIRIT Token Allocation
The SPIRIT Token has a total max supply of 1,000,000,000 tokens distributed as follows:
- Development: 7.5%
- Airdrop: 2.5% - have been conducted by the SpiritSwap team.
- DAO: 8.18%
- Yield Farming: 81.82%
SPIRIT Token Sale
There’s no token sale of SPIRIT, but you can participate in SPIRIT token Airdrop programs or provide liquidity on SpiritSwap to earn SPIRIT tokens.
SPIRIT Token Release Schedule
- Development: 7.5% will be vested within a 4-year period.
- Yield Farming: 81.8% unlocked ~15 tokens/block, decreasing over time.
SPIRIT Token Use Case
On the SpiritSwap platform, SPIRIT tokens are the key to attracting new users from other platforms and new crypto enthusiasts. Therefore, SPIRIT holders benefit from many ways, including:
- Staking: While staking SPIRIT, users can receive SPIRIT tokens purchased by 17% of the trading fees on SpiritSwap.
- Farm: Farming is a popular feature on many DEXs. When providing liquidity in farms, users earn SPIRIT tokens as farming rewards.
- The inSpirit token is the non-transferable governance token of SpiritSwap for voting on changes to the protocol. Users receive inSpirit tokens through swapping, farming, or locked Spirit tokens.
- The SPIRIT-LP token represents the share of LPs in the liquidity pool. And the main use of SPIRIT-LP is to farm SPIRIT.
How to get SPIRIT Token
SPIRIT is now only available on SpiritSwap, so you can get SPIRIT by buying token on SpiritSwap. However, this article will introduce you to how to buy SPIRIT using the Coin98 Wallet dApp browser.
How to store SPIRIT Token
You can store, send, receive SPIRIT Tokens on Coin98 Wallet with a few single steps. The guides on how to make transactions with SPIRIT on Coin98 Wallet are as follows.
Step 1: Open Coin98 Wallet & click Receive on the home screen.
Step 2: Search SPIRIT Token.
Step 3: Click on the correct result, copy the wallet address and send SPIRIT to this address.
How to buy SPIRIT Token
Step 1: Open the Coin98 Mobile Wallet. Select Browser and search SPIRIT.
Step 2: Choose Buy SPIRIT Token Now to buy the token.
Step 3: Select the trading pair, for example, FTM/SPIRIT then enter the amount to swap.
Step 4: Check all the information and confirm the transaction.
Roadmap & Updates
SpiritSwap has a very flexible roadmap adjusted based on the overall market situation. They have launched an abundant number of DeFi products such as Farm, Lending, NFT, and IDO platform, which shows the careful preparation for future opportunities. Spiritswap’s product ideas and roadmap are as follows:
- Launchpad, Stable swaps, DEX tools, Stable coin pool.
- Timelock, Token burn mechanism.
- Trading tools/graphs.
- Vault strategies.
Phase I: Initial launch
- Functional DEX: Staking, trading, and farming.
- Community: A superb, productive, and engaged community.
- Landing page: A nice place for newcomers to land that accompanies the DEX and highlights our partners.
Phase II: Foundational work focusing on the future of SpiritSwap
- A complete Roadmap.
- More farming pools: Adding new farming pools for the ecosystem to grow.
- Emission schedule: The detailed token emission schedule can be changed by the inSpirit holders.
- Team vesting schedule: The team needs to have funds from distributed Spirit tokens to make sure everything goes as planned.
- Subgraph and Analytics page: similar to Uniswap’s analytic page.
- Partnerships with projects such as Fantom Foundation, CoinGecko, AnySwap, FRAX, BitBean, etc.
- Audit: The first audit was completed by MixBytes on June 8th, 2021. And another is still in progress.
Phase III: Extra features
- Zapper: Zapping from token to LP and between LPs.
- Limit orders
- Lossless lottery.
- Baby Soully: A baby Spirit token.
Phase IV: inSPIRIT brings governance to SpiritSwap
- Launch inSPIRIT: Allow users to lock SPIRIT tokens to generate inSPIRIT.
- Gauge governance: Vote to decide which boosted farm should get higher emissions.
- Boosted farming to increase APY.
Phase V: Soul Credit/Stable provides Lending services for capital efficiency.
Phase VI: The DAO will be able to vote on emissions, supply, etc, which effectively shapes the future of SpiritSwap
Phase VII: v2 Optimized AMM.
Phase VIII: Community Decides through the voting mechanism.
Team, Investors, and Partners
- Rober Neir is the Co-Founder of SpiritSwap.
- The members of the Spirit team mostly come from Argentina.
SpiritSwap has formed partnerships with numerous other promising projects as follows: Covalent HQ, Graviton.one, Gelator Network, Popsicle Finance, CasperDeFi, Hedgey. They are standing together for mutual support and thrive.
Moreover, SpiritSwap partnered with Starter to integrate a fundraising platform into the Fantom blockchain. In short, Starter is a multichain launchpad on Binance Smart Chain and Polygon. They both plan to collaborate to drive growth and add liquidity to fuel the ecosystem.
FTM, USDC, and especially SPIRIT tokens can be used for purchasing in fundraising rounds. That means the demand for SPIRIT will rise if the IDO platform is delivered to the Fantom ecosystem.
Is SpiritSwap (SPIRIT) a good investment?
SpiritSwap had a considerable advantage in the Fantom ecosystem when it was one of the first DEXs to build on Fantom. However, according to some statistics, it shows relatively poor performance impacting the token price. Here are some notable points you might want to take into account before investing:
- Bridges from Binance Smart Chain and Ethereum directly to Fantom Opera are attracting many DEXs’ liquidity to flow into SpritSwap. On SpiritSwap, users can easily “cross-chain” deposit crypto to the platform. Currently, there is no measured number of the TVL via the bridge, making it cumbersome to assess the performance.
- Providing a wide range of DeFi products such as Swapping, Farming, Staking, Lending, NFT, and even an IDO platform, SpiritSwap is using a strategy of diversification. Those products are enough to help users experience all the convenience of SpiritSwap. Every feature is ready to serve the customers; therefore, the price also made a significant move.
- The ecosystem trend is happening in late 2021; all projects in the Fantom ecosystem are technically ready to catch the wave. In addition, SpiritSwap has a robust supportive community. Therefore, it’s worth mentioning that it has a huge upside.
- In 2021, SpiritSwap's TVL had 2 hikes, the first in Q4 2021, and the latter at the beginning of 2022. This is a good signal for the platform since the cash flow came back instead of being washed away. SpiritSwap needs to build a strong moat following up the current meta to climb to the top.
- Its next TVL milestone is $1.8B of SpookySwap. We can see both DEXs identically look the same with similar DeFi products. Whether they are each other rivals or they want to do an M&A in crypto?
And as usual, whether it is a profitable investment or not, Do Your Own Research before buying and be responsible for your investment.
SpiritSwap has an optimistically bright future in comparison to other decentralized exchanges on other blockchain platforms such as:
- Pancakeswap: A decentralized exchange built on BSC for swapping BEP20 tokens.
- Uniswap: A DEX built on Ethereum and a leading unicorn in the DeFi world with a version 3 update.
- Sushiswap: A fork from Uniswap for the sake of the community’s benefit.
- 1inch: A DEX aggregator with smart routing.
To reiterate, SpiritSwap is still behind the AMM DEX race even though it was one of the first native builders on Fantom. Its goal is to become somewhat a Sushi version of Fantom with many DeFi products. However, the products of SpiritSwap are not too innovative, dearth of the latest metagames to gain traction and lift the SPIRIT price. SpiritSwap should inherit innovative ideas from other Fantom-native players since Fantom is a flourished land for DeFi apps.
And that is all you need to know about SpiritSwap and its SPIRIT token. I hope you’ve gained helpful insight to understand the future potential behind SpiritSwap better. If you want to know further about SpiritSwap, please leave a comment below and join Coin98 Community for further discussions about Crypto.