Spirit Swap features different types of spirits within the protocol, which can be a bit overwhelming at first to truly grasp and understand by newcomers who are exploring the platform for the very first time. Today, we will be discussing the differences between $inSPIRIT and the Spirit Native Protocol token, known as $SPIRIT.
- Spirit Swap is a decentralized exchange (DEX) that is built on top of the Fantom Opera Chain.
- It is based on an automated market maker (AMM) model, and it aims to be a one-stop DEX across many Decentralized Finance (DeFi) users within the FTM network.
- This means that it has features such as bridging, farms, exchange, bonding, and lending or borrowing services.
- That said, it utilizes a multi-token structure, so to truly understand how all of this works, we will need to go over both tokens individually.
- $inSPIRIT is one Token, and $SPIRIT is another token, both of which serve specific roles within this system.
- $inSPIRIT tokens are non-transferable, and the only way a user can get them is through locking $SPIRIT tokens for a time period that can range from one week up to four years.
What’s $inSPIRIT Token?
$inSPIRIT is a token that is a governance token used within Spirit Swap. It is based on a vote locking model and offers its holders a variety of different benefits.
For example, holders of the Token can earn fees for participating within the protocol, and there are even boosted SPIRIT farming rewards. It can deliver up to 2.5x in farming rewards.
To truly get this point across, let’s imagine a scenario. You can farm FTM-SPIRIT for 100% APR without any $inSPIRIT tokens in your possession. However, if you have a sufficient balance of $inSPIRIT tokens, in that case, you can achieve a boost. The APR of the same farm, at maximum boost, would get boosted to 250% instead of the aforementioned 100%.
Additionally, through the $inSPIRIT tokens, users can gain voting power. In this case, 1 x $inSPIRIT token is equal to 1 vote. Holders of the Token are given the opportunity to vote once per week. They can also vote on protocol improvement proposals through the snapshot governance and get access to airdrops.
In order for someone to get $inSPIRIT tokens, they would need to lock their $SPIRIT tokens for a pre-defined period of time that the user themselves define. This period can range from the span of a single week to up to four years. Locking $SPIRIT tokens for a longer period of time will give the user a larger amount of $inSPIRIT tokens.
The amount of $inSPIRIT tokens decreases in the user’s wallet until it reaches 0 due to the fact that the lock period has ended, and the user can withdraw their $SPIRIT tokens. Keep in mind that $inSPIRIT is a non-transferable token.
What’s Spirit Native Protocol Token?
The Spirit Native Protocol, on the other hand, is known as $SPIRIT. This Token is the native fungible protocol token used within Spirit Swap. This is a token that can be earned by farmers and can be locked to obtain the aforementioned $inSPIRIT token.
However, the token supply of $SPIRIT is limited to 1,000,000,000 $SPIRIT tokens. This Token is predominantly used as a means of incentivizing the provision of liquidity, and this is why it has the functionality of being allocated to farming.
Due to the fact that every AMM requires its farm to function, users can provide multiple different assets as liquidity to the various farms on Spirit Swap. However, the main Token used here is $SPIRIT.
If a user wants to provide their $SPIRIT and $FTM tokens as liquidity to the SPIRIT FTM farm, then, in that case, each time $SPIRIT is traded for $FTM, or $FTM is traded for $SPIRIT, the user will receive trading fee rewards for doing so.
However, the highest APR goes to those who have their $SPIRIT tokens staked in the single-sided $inSPIRIT pool. Through this method, the users are rewarded through longevity.
So… what are the differences between tokens?
We have created a table showcasing the main differences between the $inSPIRIT and $SPIRIT tokens here.
|Governance token.||The native Token of Spirit Swap.|
|Delivers up to 2.5x farming rewards.||Limited supply of 1,000,000,000 $SPIRIT tokens.|
|Higher APR when holding the Token.||It is used to provide liquidity within Spirit Swap.|
|Grants voting power.||It needs to be staked for users to gain $inSPIRIT tokens.|
|Non-transferable Token||Transferable Token.|
To summarize and make this as simple as possible for everyone to understand, $SPIRIT is the native protocol Token of Spirit Swap. It is a token that can be earned by farmers, and it can be locked and used as a means of obtaining $inSPIRIT tokens.
It is predominantly used to incentivize the provision of liquidity, and the total supply is capped at 1,000,000,000 $inSPIRIT tokens that can ever exist. If you are curious about launching a full node and gaining access to block explorer, you can get your crypto API at NOWNodes, through which you can get instantaneous access to over 40 blockchain networks.
On the other hand, $inSPIRIT is the governance token used within Spirit Swap. It is based on a vote locking model, and it is a non-transferable token. However, the $inSPIRIT token also provides its holders with a variety of different benefits.
They can earn fees for participating within the protocol and can enable boosted $SPIRIT farming rewards up to 2.5x. They give the holders voting power and allow participation within airdrops.
That said, $inSPIRIT tokens are tied to a locked period of $SPIRIT tokens, which can range from one week to four years, as this is the only way to acquire them.
With all of this in mind, hopefully, now you have a heightened level of understanding as to exactly how Spirit Swap works and are now aware of the main differences between the $inSPIRIT token and the Spirit Native protocol Token known as $SPIRIT.GET FREE API KEY