SpiritSwap (SPIRIT) is a (https://www.coinbase.com/learn/crypto%20basics/what%20is%20a%20dex#:~:text=A%20decentralized%20exchange%20(or%20DEX,occur%20directly%20between%20crypto%20traders.&text=A%20decentralized%20exchange%20(better%20known,occur%20directly%20between%20crypto%20traders) (Decentralized Exchange) platform that allows users to swap tokens without any centralized governance. SpiritSwap (SPIRIT) claims to follow interoperability that further helps to aggregate liquidity from various DeFi ecosystems.
SpiritSwap implements the concept of an Automated Market Maker. As a process in AMM, liquidity pools automatically calculate the token price for two deposited tokens with high performance. AMM is a tool utilized to supply liquidity (token pool) in decentralized finance (DeFi) without the intervention of a third party to set the price of a token. Traders need to pay a transaction fee whenever each swap is securely executed. This fee is dispersed amongst liquidity providers and in SPIRIT token holders to encourage the platform’s growth.
SpiritSwap (SPIRIT) is a utility token of SpiritSwap DEX. The exchange token helps users with farming, trading, staking, and more. The token is designed to be used solely as an interoperable utility token. The SPIRIT token gets awarded to a user based only on the user’s activity, usage, and efforts on the SpiritSwap (SPIRIT) platform. Therefore, users who do not participate actively have no chance of receiving any incentives on the platform.
SPIRIT (SPIRIT) holders aim to acquire the benefits such as:
With the swapping of tokens from one token to another, SpiritSwap (SPIRIT) uses automated liquidity pools. So, to receive SPIRIT LP (SPIRIT Liquidity Pool) tokens, the users need to deposit two tokens of equal value, and as a result, they receive the LP tokens. The SPIRIT-LP token represents the share of users in the liquidity pool, and they can claim tokens back anytime. SPIRIT LP tokens provide the relative share of users in pools and further can be used to farm SPIRIT tokens. This process is known as farming and helps users acquire more SPIRIT tokens. The inSPIRIT token can also be locked to get a non-transferable inSPIRIT token of the chain. The SPIRIT governance token profits users with boosted SPIRIT farming rewards in the form of more tokens if they hold the inSPIRIT tokens. These rewards further provide the benefits of voting and participation rewards to users.
