What Is Spirit Swap (SPIRIT)? Complete Guide Review About Spirit Swap.

What Is Spirit Swap (SPIRIT)?

What Is Spirit Swap (SPIRIT)?

The Spirit Swap protocol adds incentives for Fantom network participants by introducing revenue sharing through the classic AMM model. We provide a platform for trading, staking, and farming. This is just the start. They are building more everyday. Back to work. Swap offers users a simple way to provide liquidity for tokens on Fantom via automated liquidity pools (LPs). To become a liquidity provider on Swap, a user must deposit equal values of two tokens. In return, they receive SPIRIT-LP tokens (Spirit Liquidity Pool tokens).

Spirit Swap tokens represent a proportional share of the given LP and liquidity providers may claim their underlying tokens anytime. Liquidity providers receive a 0.25% fee for every swap that is made in their pair. The 0.25% fee is directly added back to the LP, increasing the value of SPIRIT-LP tokens. Liquidity providers can also participate in yield farming with supported LPs. Anyone can make a LP on Spirit Swap, with any two tokens (on Fantom) of their choice. When an LP is created, the creator sets the price of the tokens.

Spirit Swap Storage Key Points

Coin BasicInformation
Coin NameSpirit Swap
Short NameSPIRIT
Circulating Supply281,306,669.67 SPIRIT
Total Supply193,320,736
Source CodeClick Here To View Source Code
ExplorersClick Here To View Explorers
Twitter PageClick Here To Visit Twitter Group
WhitepaperClick Here To View
Support24/7
Official Project WebsiteClick Here To Visit Project Website

liquidity provider enters

Spirit Swap fees are directly accumulated in the LP. For each swap a 0.3% fee is charged to the trader in the token they are selling. This is added to the LP and slightly increases the LP’s k value with every swap. 5/6 of the 0.3% fee goes to the liquidity providers and 1/6 of the 0.3% swap fee goes to the protocol fee vault. The protocol fee vault only receives their fees (in the form of SPIRIT-LP tokens) when a liquidity provider enters or exits the LP.

Spirit Swap After sometime, swaps are made in the $AAA/$BBB LP, increasing the LP’s k value. The change in k and number of outstanding shares can be used to calculate the number of SPIRIT-LP tokens that get minted into the protocol fee vault. The number of SSLP tokens to minted for the protocol fee vault can be calculated by the equation.

Where s is the number of outstanding SSLP tokens, k2 is the current k value of the LP, and Spirit Swap is the k value of the LP at the last deposit/withdraw from the LP. Figure 2 shows a diagram of a liquidity provider depositing $AAA and $BBB tokens to the LP from Figure 1, after a swap has been made.

The liquidity provider must deposit

A new liquidity provider deposits funds to the $AAA/$BBB SPIRIT-LP. The liquidity provider-must deposit $AAA and $BBB tokens in the same proportion as the LP reserve. In the example above, the liquidity provider must deposit 0.00827 $BBB tokens for every 1 $AAA token they wish to deposit. The LP first mints SPIRIT-LP tokens to the protocol fee vault, then calculates the number of SPIRIT-LP tokens minted to the new liquidity provider with the equation.

Spirit Swap Where x,deposited is equal to the number of $AAA tokens deposited by the new liquidity provider, s is the number of outstanding SPIRIT-LP shares (including the newly minted shares for the protocol fee vault), and x is the number of $AAA tokens in the LP.

Farm

Spirit Swap itself is simply a blockchain protocol which, by design, does not offer any resources for utilisation As such, in order to provide users easy access to $SPIRIT and for the protocol to perform its core function as a DEX, users would need to be incentivised to play the role of liquidity providers and stake their digital asset pairs (e.g. ETH/$SPIRIT) into the decentralised market making pools to provide the necessary liquidity for transactions.

Spirit Swap As compensation for opportunity costs, these liquidity providers which help to promote adoption of Swap by staking or including assets to selected liquidity pools (i.e. farms) in exchange for SPIRIT-LP tokens would be rewarded with $SPIRIT (i.e. “farming” on Spirit), according to each user’s relative contribution after various adjustment and correction parameters.

Supported farms

The farm contract emits 10 $SPIRIT/block and the new farmer owns 100 out of 400 SPIRIT-LP tokens in the farming contract. Therefore, the liquidity provider will be earning 2.5 Spirit Swap tokens per block. SpiritSwap’s goal is to bring liquidity to Fantom, therefore we will prioritize supporting farming rewards for other protocol tokens that are building on Fantom. However, eventually supported farms and their emissions will be decided by governance.

Acquiring inSPIRIT

To get inSPIRIT, users must lock SPIRIT tokens for a user-defined time frame. inSPIRIT would entitle the user to more preferential terms for all interactions within the protocol. Locking $SPIRIT for a longer time frame yields a larger amount of inSPIRIT. For example, locking 10 $SPIRIT for 1 year yields 2.5 inSPIRIT. Whereas, locking 10 $SPIRIT for 4 years yields 10 Spirit Swap. The amount of inSPIRIT slowly decreases in the user’s wallet until it reaches 0. This signifies that the lock period has ended and the user can withdraw their $SPIRIT.