Supercharge your farming with inSPIRIT

Hey SpiritSquad! We hope you enjoyed meeting Charon!

Today, we’d like to introduce something very special we’ve been developing for the last few months. As the saying goes, “good things take time”, and we must say that we are very proud of how this project turned out.

It’s with great pleasure that we finally unveil inSPIRIT!

What is inSPIRIT?

To put it simply, inSPIRIT is a yield generating, governance, and utility token based off Curve’s veCRV and Pickle’s DILL tokens.

However, inSPIRIT is much more than just a step towards governance. In fact, inSPIRIT brings in two other rewarding use cases, as it will be used to boost farm APYs for inSPIRIT holders and will allow them to also receive a share of all the swap fees.

Here’s a detailed how-to guide on how to use inSPIRIT.

Let’s dive into these features in more detail!

1. Farm governance

Currently, holding inSPIRIT will give you a chance to vote on pool allocations, effectively adjusting the APY of certain farms. These unique farms are referred to as “Boosted Farms”. Every week, inSPIRIT holders get to vote on the reward allocation to these boosted farms.

What is the difference between farms and boosted farms? You can think of boosted farms as being farms with more functionality (the ability to boost APYs). The boosted farms work just like regular farms and may be identical, but the spirit emission rate to them is determined by voting through inSPIRIT holders.

In a nutshell, inSPIRIT is a big step toward allowing SpiritSwap to become a real DAO, shifting some decisions of the project to the users.

2. Farm APY boost

InSPIRIT holders will be able to earn a higher yield in these new boosted farms. Just like with governance (where voting power is proportional to the amount of inSPIRIT you hold), holding inSPIRIT will enable farmers to boost rewards up to 250% (or 2.5X).

For example, let’s say you are farming in a pool that is usually giving 120% APR. With the maximum boost, you could turn that into a whopping 300%!

3. Protocol revenue — enjoy a share of swap fees!

Every transaction on SpiritSwap incurs a 0.3% swap fee, which is needed to ensure that it is economically feasible for LPs to provide liquidity, allowing the platform to run smoothly.

1/6th of this fee, 0.05%, has been recently used to fund development. From now on, these funds will be used to buy back SPIRIT on the market before distributing to inSPIRIT holders. This will apply constant buy pressure on the SPIRIT token. This distribution happens weekly, with distributions made for stakers who staked the week prior.

This feature gives inSPIRIT an inherent value, since holding it earns you money in the form of SPIRIT tokens.

How can I acquire inSPIRIT?

As anticipated, in order to acquire inSPIRIT, you’ll need to lock SPIRIT tokens for a time of your choice between one week and four years. The longer the time you choose, the more inSPIRIT you’ll yield, with 100% being four years.

ATTENTION: you can only choose one locking period per wallet, as of now. It’s not possible to lock SPIRIT for different time frames on the same account. For example, if you choose to lock for one year you will only be able to lock using that timeframe in the future, until those tokens are unlocked.

Basically, you get an amount of inSPIRIT equal to ¼ of the amount of time you lock for, expressed in years. For example, lock 10 SPIRIT for 1 year and you receive 2.5 inSPIRIT (1/4*10). If you lock for 4 years, you receive 10 inSPIRIT (4/4*10), while if you choose 6 months, you receive 1.25 inSPIRIT (0.5/4*10).

Over time, your inSPIRIT balance will decrease until it reaches 0 when your locked SPIRIT tokens get unlocked and you are allowed to withdraw.

Note that the only way of acquiring inSPIRIT is by locking SPIRIT, as inSPIRIT is a non-transferable token.

What does this mean for SPIRIT?

Now that we discussed how inSPIRIT will bring value to the users (through governance, voting on pool allocation, farming rewards and a share of the protocol income), let’s take a look at how this will benefit the project itself.

Locking SPIRIT tokens in order to receive inSPIRIT is beneficial to SpiritSwap for various reasons described below.

Decreasing sell pressure — The SPIRIT tokens that are locked cannot be sold, which would theoretically stabilize the price of the token, counteracting inflation.

Increasing buy pressureOwning inSPIRIT will let farmers enjoy a significant boost in farming rewards, encouraging users to purchase more SPIRIT in order to acquire inSPIRIT. It’s a buy pressure cycle: buy SPIRIT, lock SPIRIT, gain inSPIRIT, enjoy greater farming rewards.

Furthermore, about 17% (1/6th) of the swap fees on SpiritSwap will be used to buy SPIRIT on the market, which will apply greater buy pressure on the SPIRIT token.

Decreasing the circulating supplyFinally, locking SPIRIT will directly decrease the circulating supply of the token, making it more scarce and desirable.

Conclusion

inSPIRIT offers numerous key benefits to SPIRIT holders who opt-in to the inSPIRIT protocol:

  • A portion of exchange fees are used to buy back SPIRIT and distribute to inSPIRIT holders once a week (adding further buy pressure);
  • Holding inSPIRIT can boost farming rewards by up to 2.5X;
  • Holding inSPIRIT grants voting rights over boosted farms;
  • Possibly future rewards/prizes from Charon (the Discord bot);
  • Possibly future rewards from Baby Soully (coming soon).

Follow SpiritSwap on Medium and other channels to keep up to date with the latest news!

Medium: spiritswap.medium.com
Discord: discord.gg/spiritswap
Twitter: twitter.com/Spirit_Swap
Telegram channel: t.me/Spirit_Swap
Telegram group: t.me/SpiritSwap
Merch: spiritswap.store

A native DEX for the Fantom blockchain. Trading, staking, farming, and more to come!