1/ Part II: @Spirit_Swap Boosted Farms, Weighted Gauges and the Spirit Wars Potential…
I’ll outline:
- Who are @Spirit_Swap & @LiquidDriver
- Product Updates / Their Impacts
- Rewards, Incentives, APR, Governance Control
- Supply Trends & Spirit Wars Potential
I’ll outline:
- Who are @Spirit_Swap & @LiquidDriver
- Product Updates / Their Impacts
- Rewards, Incentives, APR, Governance Control
- Supply Trends & Spirit Wars Potential
2/ Welcome back #Fantom fam! If you haven’t already, I highly suggest you take a few minutes to read Part I of this thread, it’s context will help greatly in Part II…
Either way, as they say @olivegarden - "When You're Here, You're Family"
Either way, as they say @olivegarden - "When You're Here, You're Family"
https://twitter.com/crypto_klay/status/1475995973151338497
3/ TLDR Part I:
- @CurveFinance stable coin AMM emphasized weighted gauges & became integral to DeFi 2.0
- @ConvexFinance, on top of the $CRV model created new robust voting/staking incentive
- @Spirit_Swap, @LiquidDriver, appear to be following this model. Thus, Spirit Wars
- @CurveFinance stable coin AMM emphasized weighted gauges & became integral to DeFi 2.0
- @ConvexFinance, on top of the $CRV model created new robust voting/staking incentive
- @Spirit_Swap, @LiquidDriver, appear to be following this model. Thus, Spirit Wars
4/ For the purposes of this 🧵 we also assume the the following:
@Spirit_Swap has major similarities to @CurveFinance (AMM, gauges, farming/LP APR)
@LiquidDriver has major similarities to @ConvexFinance (governance power, trading fee rewards, eventually bribes)
@Spirit_Swap has major similarities to @CurveFinance (AMM, gauges, farming/LP APR)
@LiquidDriver has major similarities to @ConvexFinance (governance power, trading fee rewards, eventually bribes)
5/ Before diving in...
Let’s create a “tokenomics legend" based on the token models from the Curve Wars. This is our organizational framework as we expand here:
$inSPIRIT similarities to $veCRV
$linSPIRIT similarities to $cvxCRV
$xLQDR similarities to $vlCVX (vote lock CVX)
Let’s create a “tokenomics legend" based on the token models from the Curve Wars. This is our organizational framework as we expand here:
$inSPIRIT similarities to $veCRV
$linSPIRIT similarities to $cvxCRV
$xLQDR similarities to $vlCVX (vote lock CVX)
6/ Like @CurveFinance, @Spirit_Swap is an Automated Market Maker. They are also a major DEX on #Fantom Opera Chain
Traders swap between tokens in the AMM getting guaranteed rates for the swaps. @Spirit_Swap incur fees and partially distributes a % fee revenue to LP providers
Traders swap between tokens in the AMM getting guaranteed rates for the swaps. @Spirit_Swap incur fees and partially distributes a % fee revenue to LP providers
7/ @Spirit_Swap success since launching on #Fanton network has been quite impressive. Now, they have larger goals!
On December 1st they announced changes that may very well set in motion #Fantom's version of the Curve Wars.
Coined: "The Spirit Wars"
spiritswap.medium.com/what-is-the-fu…
On December 1st they announced changes that may very well set in motion #Fantom's version of the Curve Wars.
Coined: "The Spirit Wars"
spiritswap.medium.com/what-is-the-fu…
8/ The announced product changes, in many ways, mirrored that of @CurveFinance
The announcements:
1. Transition to a DAO (governance)
2. Migration to Boosted Farms
3. Generating demand acceleration for $inSpirit via smart tokenomics
The announcements:
1. Transition to a DAO (governance)
2. Migration to Boosted Farms
3. Generating demand acceleration for $inSpirit via smart tokenomics
9/ Smart tokenomics:
Acquire $SPIRIT, lock $SPIRIT, receive $inSPIRIT, use $inSPIRIT to vote for a higher weight of emissions (APR) on a protocols LP pools (the gauge)
Perhaps you recall the similarity in Thread 1 w/ $CRV / $veCRV?
No? Take a look:
Acquire $SPIRIT, lock $SPIRIT, receive $inSPIRIT, use $inSPIRIT to vote for a higher weight of emissions (APR) on a protocols LP pools (the gauge)
Perhaps you recall the similarity in Thread 1 w/ $CRV / $veCRV?
No? Take a look:
https://twitter.com/crypto_klay/status/1475995992503820291?s=20
10/ Remember:
"The influence and importance of $veCRV votes cannot be overstated"
A la, same now applies w/ $inSPIRIT
He who controls the $veCRV vote (or $inSPIRIT) controls the gauges. That's what protocols want. Directional liquidity advantages to their LPs, DeFi 2.0!
"The influence and importance of $veCRV votes cannot be overstated"
A la, same now applies w/ $inSPIRIT
He who controls the $veCRV vote (or $inSPIRIT) controls the gauges. That's what protocols want. Directional liquidity advantages to their LPs, DeFi 2.0!
11/ Additionally, locking $SPIRIT for $inSPIRIT provides other benefits as well (similar to $veCRV):
+ Incentive pools - 1/6th of the protocols 0.3% swap fees are paid out to $inSPIRIT holders
+ Boosted farms - Farmers that hold inSPIRIT can receive a max boost of up to 2.5x
+ Incentive pools - 1/6th of the protocols 0.3% swap fees are paid out to $inSPIRIT holders
+ Boosted farms - Farmers that hold inSPIRIT can receive a max boost of up to 2.5x
12/ Learning from @CurveFinance the last 6+ months we see 3 key concepts:
Tokenomic reward utilities (check), fee incentives for market makers (check) and, ultimately bribes, for voters/lockers
If/when BRIBES come for $inSPIRIT lockers then @Spirit_Swap comes full circle and...
Tokenomic reward utilities (check), fee incentives for market makers (check) and, ultimately bribes, for voters/lockers
If/when BRIBES come for $inSPIRIT lockers then @Spirit_Swap comes full circle and...
13/ So what's the alpha?!?
We now have goverance tokenomics, a DAO in motion. @Spirit_Swap gauges active and deployed across 10 LP pairs (which also has cross chain tokens) and high likelihood of bribes coming next!
Enter phase 2 of the narrative…next up - @LiquidDriver
We now have goverance tokenomics, a DAO in motion. @Spirit_Swap gauges active and deployed across 10 LP pairs (which also has cross chain tokens) and high likelihood of bribes coming next!
Enter phase 2 of the narrative…next up - @LiquidDriver
14/ Remember @ConvexFinance incentivized $CRV stakers with generous rewards to swap+lock CRV for cvxCRV?
Similarly, @Liquiddriver is paying high rewards for swapping and staking $SPIRIT, ultimately minting $linSPIRIT.
Similarly, @Liquiddriver is paying high rewards for swapping and staking $SPIRIT, ultimately minting $linSPIRIT.
15/ $linSpirit is used to boost yields/returns for $xLQDR holders.
It’s also the main tool to acquire voting governance over @Spiritswap’s new boosted farms and weighted gauges…that’s a highly important long term strategy as you may have gathered by now 😂
It’s also the main tool to acquire voting governance over @Spiritswap’s new boosted farms and weighted gauges…that’s a highly important long term strategy as you may have gathered by now 😂
16/ The incentivization of $CRV holders enabled @ConvexFinance to control 51% of all circulating $veCRV.
Thus, CVX owns the majority voting rights on $CRV gauge/pools.
Thus, CVX owns the majority voting rights on $CRV gauge/pools.
17/ By comparison @LiquidDriver owns a little over 21% of the total $inSPIRIT supply via their $linSPIRIT.
LiquidSpirit ($linSPIRIT) is wrapped version of $inSPIRIT
Their next target is 30% ownership. Their acquisition strategy is aggressive!!!
LiquidSpirit ($linSPIRIT) is wrapped version of $inSPIRIT
Their next target is 30% ownership. Their acquisition strategy is aggressive!!!
https://twitter.com/LiquidDriver/status/1475449113093328902
18/ So, what’s the purpose of $linSPIRIT?
Users swap $SPIRIT for $linspirit & @Liquiddriver locks the $SPIRIT FOREVER (we'll revisit that)
$LQDR uses the inSPIRIT they get to boost yields for the SPIRIT-FTM, wETH-FTM and wBTC-FTM pairs.
Increasing yields for $xLQDR holders
Users swap $SPIRIT for $linspirit & @Liquiddriver locks the $SPIRIT FOREVER (we'll revisit that)
$LQDR uses the inSPIRIT they get to boost yields for the SPIRIT-FTM, wETH-FTM and wBTC-FTM pairs.
Increasing yields for $xLQDR holders
19/ What are the benefits of $linSPIRIT?
1) driving more revenue for $xLQDR holders
2) $linSPIRIT is liquid, meaning you can swap back to other tokens using a DEX.
3 Lastly, you can earn yield by staking your linSPIRIT for weekly rewards OR LP'ing - compound rewards!
1) driving more revenue for $xLQDR holders
2) $linSPIRIT is liquid, meaning you can swap back to other tokens using a DEX.
3 Lastly, you can earn yield by staking your linSPIRIT for weekly rewards OR LP'ing - compound rewards!
20/ Btw, passing LIP-003 was huge:
@LiquidDriver can now acquire an additional 2.6M - 3M inSPIRIT per month just with the daily $xLQDR rewards via passing LIP-003
They can then control a significant share of SPIRIT emissions, and redirect to the LQDR-FTM pool on @Spirit_Swap
@LiquidDriver can now acquire an additional 2.6M - 3M inSPIRIT per month just with the daily $xLQDR rewards via passing LIP-003
They can then control a significant share of SPIRIT emissions, and redirect to the LQDR-FTM pool on @Spirit_Swap
21/ In turn they've created their own flywheel of user incentives and compound rewards.
Summary:
@LiquidDriver controls a large and growing % of $linSPIRIT supply; they offer staked utility & high APR.
They also carry heavy voting governance of LP gauges on @Spirit_Swap
Summary:
@LiquidDriver controls a large and growing % of $linSPIRIT supply; they offer staked utility & high APR.
They also carry heavy voting governance of LP gauges on @Spirit_Swap
22/ @ConvexFinance took control of @CurveFinance weighted gauges/pools this way.
This lead to bribes and massive diamond hand protocol buys of $CVX. Driving protocol (and token) value through utility, governance control and token scarcity.
This lead to bribes and massive diamond hand protocol buys of $CVX. Driving protocol (and token) value through utility, governance control and token scarcity.
23/ Eventually, $FTM protocols/DAOs may decide to follow a similar course: buying and locking $LQDR and/or bribing $inSpirit and $xLQDR holders.
Both are bullish, anon.
Both are bullish, anon.
24/ MUST READ: "LiquidDriv3r Zap Into the Future"
Summary:
"Their strategic play becoming the largest holder of inSPIRIT is bearing fruit. Now starting talks with various parties regarding bribes, also working on a bribing tool for xLQDR holders"
liquiddriver.medium.com/liquiddriv3r-z…
Summary:
"Their strategic play becoming the largest holder of inSPIRIT is bearing fruit. Now starting talks with various parties regarding bribes, also working on a bribing tool for xLQDR holders"
liquiddriver.medium.com/liquiddriv3r-z…
25/ Now, let's take a look at the locking utility of $LQDR today. This creates $xLQDR.
Right now $xLQDR revenue sharing is paying 134% APR in a variety of tokens. 💸
Eventual bribes of $xLQDR holders would come w/ gauge control. A NET NEW opportunity. This is the key 🔐
Right now $xLQDR revenue sharing is paying 134% APR in a variety of tokens. 💸
Eventual bribes of $xLQDR holders would come w/ gauge control. A NET NEW opportunity. This is the key 🔐
26/ The strategic goals/similarities of @Convexfinance and @LiquidDriver are clear...
LP Gauge voting, governance control & locking/staking incentives. Eventually both $xLQDR and $inSPIRIT lockers could unlock bribes
Both @CurveFinance and @ConvexFinance proved this model
LP Gauge voting, governance control & locking/staking incentives. Eventually both $xLQDR and $inSPIRIT lockers could unlock bribes
Both @CurveFinance and @ConvexFinance proved this model
27/ Timeout: revisiting our token legend…
$inSPIRIT = $veCRV (Spirit voting escrow, influence liquidity incentives + pools)
$linSPIRIT = $cvxCRV (wrapped $inSPIRIT token with trading fee rewards)
$vICVX = $xLQDR (locked $LQDR used for bribes/votes)
Make sense?
$inSPIRIT = $veCRV (Spirit voting escrow, influence liquidity incentives + pools)
$linSPIRIT = $cvxCRV (wrapped $inSPIRIT token with trading fee rewards)
$vICVX = $xLQDR (locked $LQDR used for bribes/votes)
Make sense?
28/ Great…
Now, price action of $SPIRIT could mimic $CRV & $LQDR could mimic $CVX. Lets look at historical price action + supply suppression
$CRV is up 3.4X since July 1st, *90% of $CRV is locked*
$CVX is up 16.5X since July 1st driven by strong DAO/protocol demand
Now, price action of $SPIRIT could mimic $CRV & $LQDR could mimic $CVX. Lets look at historical price action + supply suppression
$CRV is up 3.4X since July 1st, *90% of $CRV is locked*
$CVX is up 16.5X since July 1st driven by strong DAO/protocol demand
29/ Time to revisit this:
@LiquidDriver minting $linSPIRIT retires $SPIRIT off the market FOREVER. Couple that with DAOs, protocols & retail also locking $SPIRIT on @Spiritswap = Scarcity
@deficryptofarm depicts that locked scarcity here:
@LiquidDriver minting $linSPIRIT retires $SPIRIT off the market FOREVER. Couple that with DAOs, protocols & retail also locking $SPIRIT on @Spiritswap = Scarcity
@deficryptofarm depicts that locked scarcity here:
https://twitter.com/deficryptofarm/status/1476136095804841985?s=11
30/ Also, if @LiquidDriver achieves their $SPIRIT ownership goals, furthering majority vote on/for LP gauges then DAOs/protocols will want to own $LQDR the same way they have $CVX
Owning $LQDR serves as the means to the end for governance acquisition + liquidity + gauges
Owning $LQDR serves as the means to the end for governance acquisition + liquidity + gauges
31/ One more thing about $LQDR. Total supply is 3,317,036.
At the time of writing this, 63.4 % of $LQDR circulating supply is locked into $LQDR governance.
If demand narrative plays out like we're outlining here, then that number will rapidly increase with time 📈
At the time of writing this, 63.4 % of $LQDR circulating supply is locked into $LQDR governance.
If demand narrative plays out like we're outlining here, then that number will rapidly increase with time 📈
32/ It seems people familiar with the #Fantom ecosystem are beginning to realize this potential.
I'm clearly in that camp after the research/connections here
If you look at the PA of $LQDR the last month (in a fairly sideways $BTC market) it tells a story of high demand:
I'm clearly in that camp after the research/connections here
If you look at the PA of $LQDR the last month (in a fairly sideways $BTC market) it tells a story of high demand:
33/ So, what other demand drivers could we see for $LQDR?
The “if you can’t beat them, join them” scenarios.
These end up accelerating price action and create a frenzy that supercharges the Spirit Wars for #Fantom DeFi 2.0…
The “if you can’t beat them, join them” scenarios.
These end up accelerating price action and create a frenzy that supercharges the Spirit Wars for #Fantom DeFi 2.0…
34/ The 3 strategies we saw with $CVX were:
- Placing massive market buys with protocol treasury funds
- Issuing Bonds for $CVX ($OHM forks could do this)
- Passing community governance IPs to specifically approve $CVX acquisition
IMO, the same COULD happen for $LQDR
- Placing massive market buys with protocol treasury funds
- Issuing Bonds for $CVX ($OHM forks could do this)
- Passing community governance IPs to specifically approve $CVX acquisition
IMO, the same COULD happen for $LQDR
35/ Spelling it out clearly:
Supply suppression, scarcity and high demand make prices go up (duh!)
We’ve seen with this IRL w/ both $CRV & $CVX. It happens quickly and most people miss it because they never understood the market dynamic in the first place.
Supply suppression, scarcity and high demand make prices go up (duh!)
We’ve seen with this IRL w/ both $CRV & $CVX. It happens quickly and most people miss it because they never understood the market dynamic in the first place.
36/ Lastly, I want to reiterate, serious growth is headed to #Fantom in 2022…millions of new users will come.
Rising tides will lift all protocols in $FTM ecosystem. TVL will sky rocket over time. Take a look at this:
Rising tides will lift all protocols in $FTM ecosystem. TVL will sky rocket over time. Take a look at this:
https://twitter.com/cryptomanran/status/1477225293496651778?s=10
37/ History repeats itself in trading & financial markets often.
We have enough circumstantial similarities between $CRV + $SPIRIT & $CVX + $LQDR that we can conclude the stage is set for the Spirit Wars
Watching this evolve will be the fun part in 2022!
We have enough circumstantial similarities between $CRV + $SPIRIT & $CVX + $LQDR that we can conclude the stage is set for the Spirit Wars
Watching this evolve will be the fun part in 2022!
38/ One parting piece of alpha I feel is worth mentioning is @Spirit_Swap and @LiquidDriver are on their way to acquiring their own liquidity via Olympus Pro.
Owning liquidity via @OlympusDao = big 🧠 move. Decisions like this give me real confidence in the teams.
Owning liquidity via @OlympusDao = big 🧠 move. Decisions like this give me real confidence in the teams.
39/ Curve Wars, DAO Wars, now Spirit Wars
This is some of the most interesting stuff going on in DeFi - in my opinion. We will continue to monitor everything closely. Why?
To arm ourselves with information and capitalize on the future / setup ourselves up for success!
This is some of the most interesting stuff going on in DeFi - in my opinion. We will continue to monitor everything closely. Why?
To arm ourselves with information and capitalize on the future / setup ourselves up for success!
40/ I've also realized this needs to be a 3 part thread!
There are evolving/impactful/unanswered items we need to outline and monitor their impact throughout 2022. We'll want to track them later!
Part III: Spirit Wars evolving, unanswered and open items to watch...
There are evolving/impactful/unanswered items we need to outline and monitor their impact throughout 2022. We'll want to track them later!
Part III: Spirit Wars evolving, unanswered and open items to watch...
41/ In the end, do I know what comes next? ABSOLUTELY NOT! No one does!
But there are a ton of reasons to be bullish about @Spirit_Swap and @LiquidDriver
Looking forward to Part III soon. Happy New Year!
War on #Fantom Community!
Cc: @FTMAlerts @Dr_Liquid_ @Deg3ntrades
But there are a ton of reasons to be bullish about @Spirit_Swap and @LiquidDriver
Looking forward to Part III soon. Happy New Year!
War on #Fantom Community!
Cc: @FTMAlerts @Dr_Liquid_ @Deg3ntrades
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