The Problem and the Solution-
I don’t know about you but using a traditional centralised exchange (CEX) feels… you know, kinda shit. Don’t get me wrong, the ease and accessibility of it is great and obviously, the liquidity is unparalleled.
That being said, there is just something about it that has led me to have 99% of my capital on-chain, usually staked, in a farm or being lent out to the market.
With everything going on with the current regulatory scrutiny surrounding large CEXs and their ever-decreasing ability to offer new and innovative products to their customers is driving people to the decentralised world and DeFi is exploding.
I mean just look at these DeFi users metrics… from @rchen39 on Dune Analytics. Up. Only.
Cross-chain TVL is increasing too. DeFi Pulse and DeFi Llama are both reporting all-time highs for TVL. Granted, this comes with recent price appreciation across the board but given the Dune analytics metrics, I think we are on an upward trajectory which is being fueled by increased understanding of DeFi, high yields and regulation.
DeFi Llama TVL stats at ATHs.
The multichain world has been welcomed with open arms and has finally enabled users to participate in DeFi, in a secure, non-CeDeFi (ahem…BSC…cough cough…) environment and without having to sell an organ to make a trade (ahem… Ethereum… cough cough…). I really need to get that cough checked out.
I’m super excited to see where we finally end up in this new DeFi paradigm, projects with longevity in mind and sustainable protocols will come out trumps in my opinion. There are A LOT of incentivisation rewards being thrown around at the minute with every chain basically following suit and splashing the cash to draw in users to their ecosystems and rewarding them through liquidity mining and other yield-bearing incentives.
I am all for it and think these are great initiatives. Protocols and projects giving back to their existing and newfound users is such a cool thing. The only problem I have with it is that there are huge funds that will take advantage of this and in my opinion do more harm than good for emerging protocols…
Structuring an incentivisation program in a way that it pays the protocols rather than the users is the route in which Fantom has taken to draw in new users to their ecosystem through a build-first approach.
Announcing a 370 million FTM incentive program for builders!
If you’re a protocol team, we’ll reward you for sustaining and increasing your TVL on Fantom.
— Fantom Foundation (@FantomFDN) August 30, 2021
The Fantom Foundation is going to incentivise projects to first draw in the TVL through building great products. Once they achieve TVL milestones that are maintained for a designated amount of time, this is when the projects will be given access to the HUGE 370 million FTM available.
To put this into perspective, 370 million FTM could very soon be worth $1bn once FTM inevitably hits $2.70 and it might not stop there… If it does surpass this price then it will be the biggest incentivisation program there is, even surpassing Binance’s recent $1bn announcement.
I can imagine that projects being rewarded through the incentive program will be able to use these funds to hire new developers, deploy aggressive marketing campaigns, trickle-down incentives to their users in a sustainable way and even use the funds to cover overheads instead of using the project’s native token to do so. All in all, I think this is a very long-sighted approach to an incentive programme.
If you are unaware of what Fantom and the FTM token is, let me take you through a brief whistle-stop tour of this incredible layer 1 project. Following that, I will shut up rambling and we can go into the real reason you are here… SpiritSwap.
What is Fantom –
Fantom is a highly scalable, incredibly quick (1-2 second finality) and extremely cheap (less than $0.10 fees), decentralised smart contract layer one block… ahh, thought you had heard that spiel before?
All the above is correct despite one major difference. The Fantom network is technically not a blockchain but rather what is known as a Directed Acyclic Graph, or a DAG as Brad Pitt would say in Snatch.
Yes, there is the debate on whether a DAG is a blockchain and it is way too technical for this ape to understand so take a look at this thread from Andre…
Is Fantom a DAG or a blockchain?
“Two nomenclatures to first clear up;
1. Blockchain the category
2. Blockchain the structure
A blockchain is a DAG.
– Directed: moves in one direction only
– Acyclic: you can’t return to a node from the current node
— Fantom Foundation (@FantomFDN) January 26, 2021
Lachesis, the engine of the Fantom network. This asynchronous byzantine fault-tolerant consensus algorithm stands on the shoulders of the consensus algorithms that came before it.
Unlike Ethereum and multiple other blockchains, the nodes supporting the network on Fantom deliver transaction information to neighbouring nodes which then pass the information to their neighbours and so on until a huge network effect happens.
If you have ever experienced telling a friend a secret and they said they wouldn’t tell a single soul, only for everyone you know, to find out? The network kind of works like this but it wants other nodes to find out. This “gossip” travels extremely quickly through this network effect and the origin node doesn’t have to exert much effort at all.
In a lot of other blockchains, a node must profess their findings to the whole network and then every other node must align their ledger to match. This is a lot of work, energy and isn’t the most efficient way.
This all sounds a little chaotic on the surface but to prevent the blocks from being muddled up based on when transactions occurred, Lachesis also uses Lamport Timestamps to ensure those blocks that were generated first are ordered in the correct way.
In short, this allows nodes to relay information about blocks in a “happened-before” manner allowing block order to be based on events that happened before a subsequent event.
TLDR/Don’t Care: it is really clever and it works.
So with Fantom, we still have PoS to enable the security of the network to be intact by users staking their FTM on a validator node or a user delegating their FTM to a validator node to allow them to stake without running a node themselves.
With PoS the network achieves high security and decentralisation whilst the DAG structure lends itself extremely well to transaction speed and throughput. Throwing this all together you get a distributed ledger technology that achieves the following:
Highly Scalable – Fantom Opera is the Fantom Mainnet which is built for DeFi applications. Being EVM and Cosmos SDK compatible, it allows existing DApps from other chains to plug in and play in the Fantom ecosystem easily.
Fantom can then also support further public or private distributed ledgers away from Fantom Opera. This way if a high throughput CBDC decided to build on top of Fantom, this high network activity network wouldn’t congest you and your degenerative activities whilst doing so. I suggest keeping an eye on this…
Extreme Speed and Throughput – A lot of blockchains are sloooooow. If you are still rich and/or stupid enough to be performing transactions on Ethereum, it is quite frankly painful. On top of that, a lot of projects boast super quick transaction times but fail to mention finality… In Fantom’s case, finality is 1-2 seconds. If you have ever used it, you will know.
Low fees – Take it from me, I have been wandering around on the Fantom ecosystem for a long time now and I have never even noticed the FTM leave my wallet following a transaction/interaction. It is simply unnoticeable.
Decentralised/Security – I’ll touch on this as it wouldn’t be right to skip… Fantom currently only has 46 active validator nodes according to FTMScan which could be in part due to its seemingly high FTM requirements to run a node. This is currently 1,000,000 FTM ($2.4m at today’s prices).
Although that being said, a recent on-chain governance proposal to reduce this to 500,000 FTM has recently passed with a 94% vote, opening the door to further decentralisation on the Fantom network. Bullish.
The minimum stake to run a validator node on Fantom will be lowered to 500,000 FTM!
The latest on-chain governance proposal passed with a staggering 94% participation to the voting. pic.twitter.com/qnMQFWg6i2
— Fantom Foundation (@FantomFDN) October 6, 2021
It would be criminal to speak about Fantom without speaking of its biggest champion and advisor, Andre Cronje. Somewhat of a legend in the crypto space, Andre first hit major popularity with the DeFi community after building and fair launching Yearn Finance back in the DeFi summer of 2020.
Since then, Andre has served as a technical advisor and DeFi architect for the Fantom foundation and has been instrumental in bringing over some of the biggest DeFi projects in Curve Finance, CREAM and more recently Yearn, itself.
When you have someone with his calibre on board, this is just another reason to be bullish on the Fantom ecosystem as a whole.
I thought it was important to go into Fantom as SpiritSwap is designed perfectly for such a network. So, now I have confused the hell out of you with Fantom, let’s take a look at one of the most promising projects being built on this fantastic chain… SpiritSwap.
Project Overview SpiritSwap (SPIRIT) –
At first look, you may mistake SpiritSwap for just a regular decentralised exchange (DEX), then you start to explore the platform and begin to realise that this has the foundations to be a DeFi powerhouse.
The team have built a fun and innovative one-stop-shop DeFi ecosystem that operates flawlessly due to its underlying Fantom architecture.
Spot, limit and soon to be leverage trading are at the core of this protocol but it doesn’t stop there. As I mentioned it really is an all under one roof protocol that also has lending and borrowing capabilities, portfolio management, staking, farming and a brand new bridge.
I’ll go into each section of the dapp bit by bit…
The Exchange –
So, before we start, for any users of Spirit who have just realised there is a highly interactive chart function built into the dapp, you are ngmi… Simply select the little chart button to the top right (arrow) and you now no longer ask in the group Telegram “Does anyone have a chart tool for the Fantom ecosystem?”.
From here you can trade spot at market price or simply toggle to trade using limit orders. No longer must you have sleepless nights when you have entered a more than questionable shitcoin on the Fantom network. Simply set your sell order and sleep like a baby.
Keep an eye out going forward as the team certainly have some plans to enable margin trading on the DEX using Magical Internet Money (MIM) as collateral. Who knows if Dani was supposed to announce this but you know… it is great for the pampu.
So @Spirit_Swap will be the first DEX to integrate Margin trading via @MIM_Spell , @traderjoe_xyz to follow. Team working on integrating Joe LPs and spirit LPs to Degenbox strategy as collateral. Shit about to get hot af.
— Daniele 🧊🧙♂️ (🎩, 🎩) (@danielesesta) October 16, 2021
I don’t expect this to be in any way similar to Perpetual Protocol or dYdX but more of a use your SPIRIT as collateral to borrow against using Abracadabra which has a leverage feature allowing users to loop borrowed collateral.
In short, users would deposit SPIRIT, mint/borrow MIM at an under collateralized rate (50-75% or so) and from there a user can buy more SPIRIT and loop this process over and over.
Watch this space…
Farming and Boosted Farms –
So, every good AMM needs its farms to function. Users can provide multiple different assets as liquidity to the various different farms on Spirit Swap.
This might be common knowledge to a lot of people but here we go anyway… Each time a trade happens there is a 0.3% trading fee. 0.25% of the trading fee is then distributed to all those who are providing liquidity to that specific farm/pool…
So if you want to provide your SPIRIT and FTM tokens as liquidity into the SPIRIT FTM farm then each time SPIRIT is traded for FTM or FTM is traded for SPIRIT, then you will receive trading fee rewards for doing so.
The remaining 0.05% of the trading fee is then used to buy back SPIRIT from the market and distribute it to inSPIRIT holders (more on this later)…
So, on top of the trading fee rewards you receive for generously providing your assets as liquidity, you will also receive additional incentive rewards in the form of more SPIRIT tokens…
The breakdown on the SPIRIT-FTM farm currently looks like this…
The eagle-eyed amongst you will realise that there is a range for the APR. Why would that be then? The bottom range of 57.43% goes to anyone who wants to provide these two tokens as liquidity.
The real juicy APR goes to those who also have their SPIRIT staked in the single-sided inSPIRIT pool. I’ll cover inSPIRIT in a minute but all you need to understand is that the more SPIRIT you have staked and the longer duration you are staking for, then the greater your rewards are if you are also providing liquidity.
This way, those that are true SPIRIT believers, users and investors are rewarded as opposed to those who want to come to the platform and suck any rewards and then proceed to dump on the market. Again, longevity seems to be at the heart of the Fantom ecosystem.
The inSPIRIT area of SpiritSwap is dedicated to single-sided staking for SPIRIT. This is a little different to what you may have come to expect from a DEX and by this, I mean that users have to decide how long they want to lock up their SPIRIT tokens.
As the duration of your lock-up increases, so do your rewards. Those that lock up for the full 4 years will receive a greater amount of inSPIRIT for every SPIRIT they stake, hence they receive a greater amount of SPIRIT each time the protocol buys back and redistributes to inSPIRIT holders.
Yes, this does mean that you no longer have access to your tokens and couldn’t proceed to get shaken out of your SPIRIT position even if you wanted to, but then again neither can everyone else…
So when you deposit and lock your SPIRIT tokens you receive inSPIRIT. Think of this as a receipt or an IOU that represents your deposit into the pool.
From here, your inSPIRIT balance reflects how many SPIRIT tokens you will receive as rewards. As I mentioned previously there is a 0.3% trading fee when a user makes a trade. 0.05% of this is used to buy back SPIRIT from the market and redistribute this to inSPIRIT holders EVERY WEEK.
Lock up duration affects the amount of inSPIRIT you receive based on your deposit.
So imagine you chose to lock up 10 SPIRIT for 1 year, you will receive 2.5 inSPIRIT, whereas, if you decided to lock up 10 SPIRIT for 4 years then you will receive 10 inSPIRIT.
This way when the SPIRIT buybacks happen those with larger inSPIRIT balance are rewarded more handsomely.
Finally, inSPIRIT is non-transferable and cannot be used elsewhere.
All make sense?
I have a strategy further down the article which I’m going to be using to generate passssssssive incooooooooome.
On top of that, inSPIRIT holders can also cast their vote on which farms they want to boost. So if there is a large number of SPIRIT stakers that are also providing liquidity in specific farms then they can sway how much boosted rewards are sent to each pool.
This great little piece of governance is a great example of how to properly incentivise SPIRIT supporters into actively shaping how the protocol works.
Quick quiz… If you were to guess the average number of days that users have locked their SPIRIT up for what would you guess?
Have a think…
1 week? Nope.
1 month? Not even close?
1 year? Try harder!
An impressive 792 days… that is one hell of a bullish metric. I feel like I am repeating myself here but everything I seem to come across in the Fantom ecosystem is built to last. SpiritSwap stakers are once again showing this for their commitment to locking their tokens for an extended period of time.
Even the amount of SPIRIT tokens locked compared to the circulating supply is around 2:1, people are obviously very happy to set and forget with their SPIRIT bags and inSPIRIT rewards and I tend to see where they are coming from.
Lending and Borrowing –
If this wasn’t enough, SpiritSwap also offers lending and borrowing. Users can deposit their tokens and then borrow against their collateral. The UI/UX is extremely familiar with the lending and borrowing protocols that you will have come to know and love across DeFi.
According to the recent update in the roadmap, there will be new additional tokens added to this area of the platform.
The Bridge –
To all my fellow bridgooooooors, the SpiritSwap bridge is now live and powered by one of the best bridges in the game AnySwap. This has been one of the major hurdles for the Fantom ecosystem in my opinion.
Fantom withdrawals on Binance are… erm… very erratic. They have been a lot more consistent recently which is a great sign. That being said, when FTM decides to go on a run as it has a habit of doing recently, don’t be surprised if those withdrawals go down for “maintenance”.
So when the time comes, because it will… the Fantom bridge is going to be extremely beneficial to the network. As an added bonus, the AnySwap bridge has recently had its Ethereum – Fantom bridge fees removed.
The @FantomFDN bridge fee update:
Bridge fee: 0.1%
Minimum fee: 80 FTM
Bridge fee: 0.1%
Minimum fee: 80 FTM
Bridge Fee: Free
Bridge fee: 0.1%
Minimum fee: 30 FTM
— Anyswap (@AnyswapNetwork) September 6, 2021
With the bridge being directly integrated into the SpiritSwap then users looking to cross the bridge then they land directly onto the SpiritSwap platform.
I will note that currently the SpiritSwap bridge has been simplified to make the whole process as user friendly as possible and in doing so, only supports Polygon, BSC and Ethereum to Fantom at the moment.
If you want to bridge over from another chain you can go directly to AnySwap and check out the other supported chains they support for Fantom bridging.
Note – There is a bridge and a router on AnySwap so make sure you select the best one out of the two. Take into consideration the liquidity of the bridge/router and the fees too.
So now we have explored all the main features of SpiritSwap, let’s take a look at the SPIRIT and inSPIRIT tokens.
The SPIRIT token itself as previously mentioned has utility, revenue and governance benefits. 0.05% of all trades are used to buy back SPIRIT from the market and redistribute to inSPIRIT holders (SPIRIT stakers).
At a current market cap of around $86m with $301m TVL, 64.8% of all circulating SPIRIT (241,164,179) is locked for an average duration of 792 days. The current emissions schedule for SPIRIT tokens is as follows…
As you can see, the emissions rate gradually reduces over time until March 2025 when a total of 1,000,000,000 SPIRIT will be in circulation.
So what is the best way to allocate to make the most of the remaining locked supply over the next few years?
Well, the distribution of SPIRIT heavily favours those that are farming and supporting the platform with liquidity.
Distribution of remaining SPIRIT –
Note – The Development fund will only receive emissions from July 2021 – March 2022.
As the team went with the CRV/veCRV token model as opposed to the SUSHI/xSUSHI, this has led to some cool products being built on top of the SPIRIT/inSPIRIT token.
Wrapped inSPIRIT (winSPIRIT) tokens are used to incentivise users to deposit their SPIRIT into their contract and in return they will receive winSPIRIT tokens. Any project can create a wrapped version of inSPIRIT.
Grim Finance has ginSPIRIT (a great name), so how this works is that a user can go to their yield optimiser and convert SPIRIT tokens into ginSPIRIT.
So what are the benefits of this?
As a yield optimiser, Grim wants to offer the best yields possible to attract Fantom users to its platform. So, think back to how Grim would achieve the maximum yield possible from Spirit… lock-ups…
When a user converts their SPIRIT to ginSPIRIT (1:1) they are effectively giving up their SPIRIT to Grim Finance who are in turn depositing this SPIRIT in a 4-year lock-up which will yield the highest returns of SPIRIT.
This effectively allows Grim to hold a large amount of SPIRIT as everyone who converts to ginSPIRIT effectively pools their SPIRIT together and stakes it for the full 4 year lockup period.
Users can then take their ginSPIRIT and deposit it into the ginSPIRIT vault on Grim Finance and each week that the contract receives the SPIRIT rewards. From here the SPIRIT is converted into more ginSPIRIT and these are then distributed to all those within the ginSPIRIT vault and auto compounded accordingly.
So this is an effective way of completely removing SPIRIT from the market as each time SPIRIT is locked into the 4-year lock-up by Grim Finance, the clock starts over again.
It has its pros and cons using ginSPIRIT. Users can trade their ginSPIRIT for SPIRIT if they wish, whereas inSPIRIT is non-transferable.
Although holders of ginSPIRIT miss out on all the additional benefits of boosted farming rewards, governance voting and also the ginSPIRIT token may decrease in value compared to SPIRIT over time. This is because those that want to exit their ginSPIRIT position will have to sell for SPIRIT.
Food for thought…
As discussed previously, the most optimal strategy is to be both a liquidity provider and a long term locked SPIRIT staker, ideally for the full duration.
The inSPIRIT governance voting on where the most farming rewards go is currently heavily in favour of the SPIRIT-FTM pool.
What I find extremely interesting is that the whole DeFi 2.0 paradigm that is currently taking place is heavily focused on protocols owning large amounts of liquidity and using this as a colossal revenue stream.
Judging by the recent update in the SpiritSwap Roadmap, the team plans to bring over all the regular farms to the boosted farms section which, if voted for, would then be subject to a greater distribution of SPIRIT from emissions.
New emerging DAO/treasury based projects that seek to use SpiritSwap as a platform to generate increased income from trading fees and SPIRIT rewards, would be incentivised to buy SPIRIT from the market, lock it and vote on their pool receiving increased SPIRIT from emissions.
Taking another look at the updated roadmap for a second, it looks like it is going to be a very profitable time for SPIRIT LPs. This is what is mentioned:
Ask yourself this… why would you be providing liquidity anywhere else on Fantom if you can deposit your LP position as collateral borrow MIM and then utilise this for further yield?
You can even use it to create a bigger LP position and earn more yield…
Spirit Swap is going to be a black hole of liquidity because of this leveraged LP strategy and those liquidity providers are going to be the benefactors.
inSPIRIT Passive Income Strategy
If you are all about that passive income, then the following strategy might be of interest to you.
Whether it is to generate more returns to add to your crypto portfolio or to use for your IRL expenses, SpiritSwap potential has one of the highest-earning potentials I have come across.
Mainly due to the potential price potential of SPIRIT and in part to the expected trading fees and hence rewards coming from the protocol.
So here we go just using round numbers…
$10,000 worth of SPIRIT at today’s prices of $0.35, locked for 1-2 years at current APRs based on last week’s stats of 47.3%…
The worst-case… SPIRIT stays at current prices (unlikely) you will be effectively earning $83 a week.
In a more likely scenario, if/when SPIRIT hits $1, then we are looking at around $237 per week or roughly $948 a month.
From here you can go and do what you want with it and enjoy the benefits of this strategy.
Simply LP this position in the SPIRIT-FTM farm and earn additional yield from the boosted farms…
Once the Abracadabra rolls out SPIRIT as collateral you can effectively use your SPIRIT rewards to borrow MIM.
This, if collateralised responsibly, maintains your SPIRIT exposure in the lock-up, your SPIRIT exposure in the Abra and then you have liquid MIM to do with as you please, go buy some more SPIRIT if you want, it is up to you.
Anyway, this is just something I am looking at and once I begin to go down the rabbit hole it is hard to get out.
Also, take everything you have just read with a pinch of salt because I am literally an idiot and not a financial advisor.
SpiritSwap Potential –
SpiritSwap is reliant on the continued adoption of the Fantom ecosystem, which is no secret.
With the increased ease of access to this network via sustained uptime for Binance withdrawals, deep liquidity across bridges, trickled down incentives for users and overall increased awareness of the chain, I believe SpiritSwap will thrive.
We haven’t even begun to speak about Coinbase… once users (particularly in the US) can buy FTM and withdraw to the Fantom network, the inflows will inevitably increase. Now, I am not from the US so I don’t have the first idea about the restrictions on this, so you will have to DYOR.
The seemingly cosy partnership between SpiritSwap and the Dani projects is also a very positive takeaway. Some of the most positive and innovative projects in this whole space partnering up and building products that have the best interest of its users is a massive win in my book.
In the last 4 weeks, SpiritSwap has seen around $1.3bn in trading volume. As 0.05% of this is used to buy Spirit from the market and redistribute to inSPIRIT holders, they will have been subject to roughly $650,000 worth of protocol revenue rewards.
Annualised at current rates this would generate around $8.5m for inSPIRIT stakers with a P/E ratio of around 16-17.
P/E ratio is a fully diluted market cap divided by protocol earnings.
136,657,000 (FDV) / 8,500,000 (annualised protocol earnings) = 16.07
It doesn’t take a genius to work out that if a market cap is extremely low compared to protocol earnings then depending on the type of project, it can be suggested that it is undervalued. Suggested being the keyword here.
Just remember if this method doesn’t work it is the market that is wrong and not you…
I can only see more volume and more trading fees translating to further protocol revenue happening from here on out, so these numbers may also increase.
Back to my old pal Token Terminal. One day I will stop being a stinge and buy a subscription but if you are reading this and fancy sponsoring that would be great 🙂
Given the P/E ratio if and when Spirit goes live on Token Terminal, it would be sat just below Axie Infinity and above SpookySwap… The higher a project is on this list the more potential growth based on fundamental and revenue information in relation to other projects in the industry.
Fully diluted market caps may skew some data sets using this type of analysis but you get the picture.
We as degenerates understand there are an awful lot of projects out there with overinflated market caps with not a lot of underlying value given to its token holders. SpiritSwap is quite the opposite. Given the teams focus on longevity, sustainable growth and incredible partnerships, I just can’t see this project being anything short of a major success.
The implementation of leveraged trading will be a game-changer and will set Spirit apart from the competition. Increasing LP positions through leverage is kind of a new area of DeFi that has yet to be properly explored and is currently majorly underutilised.
I heard Noah Seidman on his YouTube channel talking about how LP tokens will become liquid and a part of everyday DEX trading at some point and thought that it could be quite a while away, but given the recent developments in the SpiritSwap roadmap, they may be here sooner than you think.
I think SpiritSwap has all the makings of a complete project. A great community, an excellent fast-paced team and a top top top tier project. I still think we are incredibly early to the Fantom ecosystem but not so early that opportunity cost becomes an issue.
The Fantom incentive programme behind the scenes must be well underway and SpiritSwap with their recent $300m TVL milestone (and counting) are certainly going to be benefitting from those rewards. Enabling this team to grow and expand with these funds is going to be incredible to watch and I can see the users and investors of this project being benefactors too.
Just taking a minute for a shout to the team who have been extremely helpful with supplying me all the information I needed to write this article. It is always appreciated when projects are supportive of this content and it gives me a lot of hope when I know that the team are genuine down-to-earth folk.
This next closing point is something that may be THE deciding factor in the race to being number one DEX on Fantom. I mentioned earlier about the boosted farms and how inSPIRIT holders are the deciders of how those SPIRIT rewards are distributed to each farm.
What we are seeing on Curve at the minute is that Convex are doing everything in their power to stack as much CRV as physically possible. Why? Well, Curve is the Ethereum layer 1 DEX of choice for extremely deep liquidity for the majority of stablecoin pairs and also the Tri Crypto pool assets (BTC, ETH and USDT).
There is a liquidity war happening at the moment that seeks to control the next batch of CRV rewards and their destiny. Convex holding an awful lot of CRV through their protocol effectively locking CRV in return for cvxCRV, allows Convex to have a very large say in where the future CRV rewards go.
So with SpiritSwap… What happens when DAOs are spun up that decide they want to own a large swaying vote in the leading DEX on Fantom, particularly with trading pairs that aren’t on the likes of Curve?… Well, there becomes a huge demand from said DAOs and protocols to sway the SPIRIT rewards in the favour of their specific trading pools.
Why would a DAO want to do this? Well if their token or a trading pair they own the majority of liquidity for is further incentivised by SPIRIT rewards, they earn a very large portion of the trading fees and also the lion’s share of the SPIRIT rewards to add to their treasury.
Protocols owning liquidity and DAOs deciding how to optimally use treasury funds is here and it is happening NOW.
Keep an eye out over the coming months for these liquidity wars and how it plays out, but SpiritSwap is perfectly orientated to benefit from these kinds of battles as each project that seeks to benefit needs an awful lot of SPIRIT to do so. Pump my bags, sir.
One final point, to keep an eye out for is their development of a reflectionary meme coin called Baby SOULLY.
Now, love them or hate them, meme coins can be fun as shit and aren’t all a pumpu dumpu. When the details of how the reflection mechanism of this particular one is released I think every SpiritSwap fan will be very very very happy indeed.
Annnnnnd that is about it. I apologise for how long that was and how long it took to release, but there was A LOT to cover here. SpiritSwap is a true gem of a project and I can’t wait to see how well the team and investors do off the back of it.
TLDR: SpiritSwap is HIGHLY undervalued.
As always, if your project likes this kind of content give me a shout and we can look to sort something out. @blocmates on Telegram or [email protected] for email or even DM on Twitter – @blocmatesdotcom
Again, no shills, only projects I would or have invested in previously or products that I would use.
SpiritSwap Rescources –
Telegram (group): https://t.me/SpiritSwap
Telegram (announcements): https://t.me/spirit_swap