SpiritSwap app review

SpiritSwap

SpiritSwap app review

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Open Dapp

Basic info

  • Token SPIRIT
  • Audited yes
  • DAO yes
  • Yield farming yes
  • Team public
  • Hacks no

Audits

Auditors:

MixBytes

MixBytes

Token profile

Price Market cap.

Yolanta Chomag

Last updated: Nov 22, 2022

What is SpiritSwap

SpiritSwap is a decentralized exchange (DEX) with an automated market maker (AMM) protocol on the Fantom Opera Chain. 

Besides AMM DEX, SpiritSwap offers other DeFi services, such as yield farming/staking, limit orders, Zapping (quick creation of LP tokens), and inSPIRIT (staking of a native token SPIRIT).

How does SpiritSwap work

SpiritSwap offers token swaps on Fantom via automated liquidity pools. The swapping rate is determined by the AMM with the equation x*y=k, where x is the number of AAA tokens, y is the number of BBB tokens, and k is a constant. 

Let’s say there are 1000 AAA tokens and 10 BBB tokens in the reserve, and the pool constant k equals 10,000. For example, a trader wants to swap 100 AAA tokens for BBB tokens. The trader sends 100 A tokens to the AMM. First, a 0.3% fee is applied by SpiritSwap to the transaction and therefore 0.3 AAA tokens are deducted from the initial 100 tokens. The remaining 99.7 AAA tokens are exchanged in the AMM for BBB tokens. Since the AMM will be losing BBB tokens, it must gain AAA tokens to keep k constant. The equation will be (1,000 AAA + 99.7 AAA) * (10 BBB — y) —  10,000. From this formula, the number of BBB tokens which the user will receive can be calculated.

SpiritSwap’s Liquidity Pools require depositing equal values of both tokens. In return, liquidity providers receive LP tokens representing a proportional share of the deposited tokens (which can be redeemed at any time). When an LP is created, the creator sets the price of the tokens. The amount of SSLP (SpiritSwap Liquidity Pool tokens) minted are based on the equation SSLP = sqrt(x * y), where x is the number of AAA tokens and y is the number of BBB tokens. 

Liquidity providers can also deposit their LPs into farms in exchange for SPIRIT tokens. There are three types of farms: standard, boosted and winSPIRIT. Standard farms can be boosted via the community vote. As for the winSPIRIT farm, it is designed for LP tokens, representing SPIRIT and wrapped SPIRIT token (ginSPIRIT or linSPIRIT), which can be purchased through the partnering platforms Liquid Driver and Grim Finance.

Additionally, the SpiritSwap team implemented a “Zap” function. Zap lets users instantly swap SPIRIT, FTM, and USDC directly into LPs, without needing to swap for the necessary tokens to create the pair. 

How to use SpiritSwap

In order to connect to the SpiritSwap app, users need a wallet supporting the Fantom network, such as MetaMask, Coin98 Wallet, Coinbase Wallet, Clover Wallet, Wallet Connect, Token Pocket, and Math Wallet. 

Once connected to the app, users can navigate to the homepage on the left menu. There is an array of SpiritSwap products on the homepage. Alternatively, some products, like exchange, farms, etc. can be accessed via the menu on the left. 

The key requirement for the token swap is to have FTM in MetaMask on Fantom Opera for the gas fee. Both market and limit order are available for the swap. Also, before making the swap, you need to make sure that Slippage Tolerance is larger than the Price Impact. If Slippage Tolerance is larger than the Price Impact, select the setting icon and increase the Slippage Tolerance.

Liquidity mining requires depositing two tokens in the pool, and farming — an LP token. Zap function allows depositing only one token in the liquidity pool in return for an LP token.

In order to receive the government token inSPIRIT, navigate to inSPIRIT on the left menu, you will be redirected to the new page with different lock-up periods.

SpiritSwap fee is 0.3%. 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 staking 

SpiritSwap staking is depreciated, but users can lock their SPIRIT tokens to generate the governance token inSPIRIT in return. The inSPIRIT token allows earning swap fees, boost farms, and partaking in governance. The amount of generated inSPIRIT tokens depends on the chosen lock-up period.

The SPIRIT token

The native token of the SpiritSwap protocol is SPIRIT, which is an FRC-20 token based on the Fantom network. The token functions as the economic incentive for  users to contribute and participate in the ecosystem on SpiritSwap, such as liquidity mining. Also, SPIRIT can be locked to generate the government token inSPIRIT, which can be used in protocol voting.

The SPIRIT token has a total maximum supply of 1,000,000,000 tokens distributed as follows: 7.5% to the project development, 2.5% to the airdrop, 8.18% to the DAO treasury, and 81.82% to the yield farming rewards. The share allocated to the airdrops can be increased by the DAO.

Is SpiritSwap safe

The SpiritSwap team consists of its founder Robert Neir, and developers Eric Saúl Eveleens, Marcos Iglesias, Nicolas Limonoff, and Victoria Geddes. All the members have a solid programming background.

Partners 

SpiritSwap has collaborations with Liquid Driver and Grim Finance —  both platforms offer wrapped SPIRIT tokens.

The protocol has also partnered with Olympus DAO for protocol-owned liquidity, KeKTools for integration of interactive multi-pair charts, and with Starter to deliver new means of fundraising to Fantom.

Users can secure their assets on SpiritSwap and purchase coverage through its partner InsurAce.io.

What's next

SpiritSwap has a very flexible roadmap, adjusted based on the overall market situation. The launch of the Spiritswap’s future products will be decided by the community. The suggested product ideas include a launchpad, stable swaps, DEX tools, stable coin pool, token burn mechanism, and vault strategies.

Links

https://docs.spiritswap.finance/

https://commonwealth.im/spiritswap/

 

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