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SpiritSwap Tokenomics deep dive

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Mr. Crypto Lemon 🍋
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This post will take a look at one of the most popular DEX on the Fantom Network: SpiritSwap. In this blog we will only talk about current Tokenomics and give an overview of the Platform's capabilities

What is SpiritSwap?

SpiritSwap is a Decentralized Exchange on the Fantom Network. It offers a lot of features and ways to earn yield. I will list some below:

  • Automated Market Maker (AMM) Pools: Farms
  • Staking $SPIRIT for yield, governance voting power and in order to benefit from bribes rewards
  • Lending/Borrowing platform thanks to a partnership with Ola.Finance
  • Bridge capabilities (Ethereum, BSC, Polygon, Arbitrum, Avalanche) thanks to a partnership with Multichain
  • Bonding capabilities thanks to Olympus (OHM) link

SpiritSwap Analytics

SpiritSwap is the 9th ranked protocol in terms of TVL on the Fantom Network with a TVL of $235mn. It is the #2 Decentralized exchange behind SpookySwap.

SpiritSwap TVL and Volume

As you can see below, TVL has been slowly growing over the months and volumes are also quite healthy.

Fees structure

Swap fee on SpiritSwap is a 0.3% fee.

  • 5/6 of the fee goes to liquidity providers of the given Liquidity Pool
  • 1/6 of the fee goes to the protocol fee vault, which is allocated towards an incentive pool to be distributed to all active participants of the protocol (for example, users which lock tokens to obtain inSPIRIT and participate in governance)

$SPIRIT Distribution

Total Supply: 1,000,000,000 $SPIRIT Farm: 81.82% DAO: 8.18% Development: 7.50% Airdrop: 2.5%

$SPIRIT Emissions

What is very interesting is that the amount of $SPIRIT/block is dropping from 10.29 in March 22 to 9.71 in April 22.

On top of that, March 22 is the last month of the Dev Fund Vesting. Every month since June 2021, 7.5mn $SPIRIT tokens were vested and therefore could be sold on the market. March 2022 is the last vesting month, therefore going forward, we might see less selling pressure!

Also, as DAO emissions continue, this should speed-up the use of the DAO structure to incentivize new initiatives and projects for SpiritSwap

SpiritSwap Roadmap

There is a very comprehensive Roadmap in the SpiritSwap Docs and you can see what has been achieved over the past year. Quite impressive.

Everyone using SpiritSwap and most of the Fantom community is waiting for SpiritSwap V2.0! Many influencers and Fantom stakeholders have tried it and all feedbacks I could find have been quite positive. This could definitely be a positive catalyst once released.

$SPIRIT Price Chart

*The current MarketCap of SpiritSwap is c.$27mn which is equivalent to 0.12x MktCap/TVL ratio. In the CryptoWorld this is viewed as a cheap ratio. As a comparison, Uniswap is at 0.64x and PancakeSwap at 0.48x.

This is all for this blog on SpiritSwap's Tokenomics. This post might be edited if I decide to include more information in the future.

Stay safe out there,

Resources:

Latest Analysis

Posted Using LeoFinance Beta