SpookySwap is a leading Fantom-powered decentralized exchange (DEX) and automated market maker (AMM).
Cryptocurrencies have finally given the masses the freedom to control their finances and disentangle themselves from the tight ropes of the traditional financial system. But the problem is, that not all platforms that support cryptos can bring the most out of these digital currencies, which limits people’s ability to gain true financial freedom.
Table of Contents
Background
SpookySwap, a decentralized exchange, aims to provide genuine help to crypto users by providing them with very low transaction fees and funnelling back a large chunk of these fees back to them.
By eliminating the “profiteering element” to their equation, the platform hopes that it can help crypto believers all over the world unlock the true potential of their assets.
What is SpookySwap?
SpookySwap is a leading Fantom-powered decentralized exchange (DEX) and automated market maker (AMM).
It fully utilizes Fantom’s innovative speed, security, and scalability to deliver ideal crypto services for platform users, one of which is incredibly low swap fees! One of SpookySwap’s main goals is to build a competitive foundation for its native token, called BOO, which will be discussed in detail later.
SpookySwap Services
Swap
SpookySwap users can swap a token to another token they prefer through automated liquidity pools, with a trading fee of only 0.2%.
Out of this fee, 0.17% goes back to the liquidity pools to fund the rewards for liquidity providers, and the remaining 0.03% is funneled to xBOO stakers. (xBOO will be discussed later). And these allocations are what make SpookySwap different from other DEXs because no fee is directed to the development fund or even to the treasury.
Liquidity
Liquidity contributors of the platform will earn 0.2% swapping fees from the pairs they gave, and they can even earn more rewards if they stake on SpookySwap farms.
There is also a token called Spooky Liquidity Provider tokens or “spLP tokens,” which will be given to liquidity providers to serve as proof of their contribution.
Let’s say that a platform user deposited BOO and FTM into a pool; the system will then give them “BOO-FTM spLP” tokens, which will represent a user’s share in the pooled assets.
The DEX has over 18 pairs that users can stake in, which the platform claims is Fantom chain’s most diverse farms to date.
Liquidity Farm
By staking spLPs on liquidity farms, the platform rewards users with BOO tokens because every time users participate in staking, they help counter the risk of impermanent loss.
Single Stake Pools
Single-stake pools are pools where only one type of token is required when staking, and its concept is similar to generating a liquidity token and staking that token in a farm to acquire other tokens.
BOO Token
BOO Token is SpookySwap’s governance token, which has a 13,666,000 supply and will soon have a slice of the protocol fees.
The platform calculates emissions based on “BOO per second “, instead of “per block,” like what farms on Ethereum and Binance Smart Chain are doing. This might sound unusual and even worrying to some users, but the truth is, users’ rewards remain similar and consistent with other farms in various chains.
Buyback BOO
Users who stake BOO tokens on the xBOO pool will receive xBOO tokens which represent their shares in the pool.
They are also reminded that the number of their xBOO tokens wouldn’t increase, but it doesn’t mean that users wouldn’t receive any added value anymore.
Because each xBOO token’s value is set to increase continuously, thanks to the trading fees buying back BOO tokens, which are directed to the pool.
xBOO
xBOO is the “receipt token” users receive when they deposit BOO tokens in the buyback single stake pool. Users can exchange xBOO for BOO at a ratio of 1, but it wouldn’t remain at 1 and can go up because fees are distributed into the pool as BOO tokens.
xBOO has all the utilities of a token, except that it was not created for trading, and once a DAO is established, it will be used for on-chain governance.
Wallet
Metamask wallet will be needed to use SpookySwap, and even though the wallet has default support to Ethereum, connecting it to the DEX will automatically link it to the Fantom Opera.
Free Fantom Gas
To tap the functionalities of the the platform, including any Fantom-based services, a user will need an FTM for gas.
Here’s how to get them for free:
First, one must have a wallet address that has never been used for Fantom Opera 2.
Second, go to fBomb.Finance and follow its instructions.
Third, once a small amount of gas has been received, users must go to the SpookySwap’s Swap page to swap and earn more FTM tokens.
Magicats NFT
Magicats is SpookySwaps’ Genesis limited series NFT collection containing 5000 adorable cats made from 125 unique assets. The cats were such a huge hit that it was sold out in just 5 minutes, giving the platform a good headstart in its NFT venture.
Magicats resellers will receive a 5% royalty fee; and half of it will go to the developers, while the other half will be used to buy back BOO tokens.
The decision to use half of the royalties to buy back BOO tokens came from community voting, a clear sign of true decentralization in SpookySwap’s ecosystem.
Magicats was not just created to test the NFT waters but to boost SpookySwap’s economy through the earned royalties.
The collection is integrated with a provenance record to prove that the digital assets have not been tampered with by anyone, especially by creators. Aside from its resale value, Magicats will have additional benefits in the future as the team will soon equip the cats with more utilities.
Magicats can be purchased initially on PaintSwap Finance, an open NFT marketplace with a decentralized exchange.
SpookySwap Partnerships
Market.xyz
Market.xyz is a platform that facilitates the creation of isolated interest rate markets and helps people borrow and lend any token-based asset equipped with ERC-20 standards.
Through their partnership, users are given expanded investing strategies through SpookySwap’s liquidity and the availability of smaller borrow positions that Market.xyz can leverage.
By integrating Market.xyz in the DEX’s lending and leveraging services, users can seamlessly control factors including close factor and liquidation incentive, reserve and administration fee, and more.
Retreeb
Retreeb, a payments solution platform created in 2019, aims to establish a payment ecosystem that can increase the efficiency of value distribution without forcing consumers on additional fees.
The platform has created what is called a “disintermediated” means of payment, which means that consumers don’t have to take the burden of interbank commissions anymore.
The decentralized initiatives and expertise of Retreeb and SpookySwap makes them an ideal partner to further tap the benefits of blockchain technology and deal with the current problems of the financial system.
Conclusion
SpookySwap has a generous economic model that really benefits platform users in a big way, a clear proof that it was created to truly help crypto users. It was also a smart move to launch its own NFT collection to further improve its economy, and its recent success proves that it can efficiently venture into both DEX and NFT services.
