The Different SPIRITS in SpiritSwap
Primer: SpiritSwap has many types of SPIRITs inside the protocol that can be confusing to newcomers. This article aims to exorcise all the confusion and dispel all the misconceptions about the three tokens: $SPIRIT, $inSPIRIT and winSPIRIT.
Introduction
SpiritSwap is a decentralized exchange (DEX) on the Fantom Opera Chain. It is based on the Uniswap constant-product automated market maker (AMM) but it has many more features that will serve as a one-stop DEX for DeFi users in the FTM network. Features include bridging, farms, exchange, bonding with OHM as well as lending/borrowing services.
But the one thing that confuses us when we’re in the app is actually the many different types of ‘spirits’. There is $SPIRIT, $inSPIRIT and finally winSPIRIT. What exactly are these?
Let’s take a look at this article.
$SPIRIT
Native fungible protocol token of SpiritSwap
Can be earned by farmers
Can be locked to obtain $inSPIRIT
Total supply is 1,000,000,000 $SPIRIT
Farm: 81.82%
DAO: 8.18%
Development: 7.50%
Airdrop: 2.5%
Predominantly used to incentivise the provision of liquidity, hence the allocation to farming is pretty high
$inSPIRIT
Governance token of SpiritSwap
Based on a vote locking model, similar to veCRV from Curve Finance and DILL from Pickle Finance
Main benefits for InSPIRIT users
Earn fees for participating in protocol
Boosted SPIRIT farming rewards
up to 2.5x in farming rewards
E.g. without inSPIRIT, you can farm FTM-SPIRIT for 100% APR. With sufficient inSPIRIT to achieve max boost, the APR of the same farm FTM-SPIRIT get boosted to 250%
Voting power
1 inSPIRIT = 1 vote
Holders can vote once per week on-farm emission allocations
Can also vote on protocol improvement proposal through snapshot governance
Airdrops
Acquiring inSPIRIT
Need to lock SPIRIT tokens for a user-defined timeframe between 1 week and 4 years
Locking $SPIRIT for longer timeframe yields a larger amount of inSPIRIT
E.g. Locking 10 $SPIRIT for 1-year yields 2.5 inSPIRIT, but locking it for 4 years yields 10 inSPIRIT
The amount of inSPIRIT slowly decreases in the user's wallet until it reaches 0 because the lock period has ended and the user can withdraw their $SPIRIT
inSPIRIT is also non-transferable
winSPIRIT
A general term for any wrapped inSPIRIT token
2 versions of wrapped SPIRIT currently:
ginSPIRIT - by Grim Finance
linSPIRIT - by Liquid Driver
Both winSPIRIT tokens are transferable
These are created by autofarms such as Grim Finance or Liquid Driver to accumulate SPIRIT by offering winSPIRIT to users when they lock their SPIRIT token
This allows the autofarms to gather enough voting power to increase the APR of their SpiritSwap boosted farm vaults up to a max of 2.5x
The SPIRIT tokens deposited will relock itself every 4 years perpetually, so they can never ever be redeemed back for SPIRIT
Comparison between inSPIRIT and winSPIRIT
There are pros and cons to holding inSPIRIT and winSPIRIT. All these can be seen in the table below:
Infographic
We did a nice infographic to put all the information in this article in a neat and easy to digest form. Take a look below: