Soully’s Journey: Post V2
Hello Defi Spirits!
It’s hard to believe, but SpiritSwap V2 has been out for over a month.
In this short time, we have accomplished many things by upgrading our protocol, even though the current market has taken a turn.
As we are getting closer to 2023, (hopefully a better year for Cryptocurrencies) we want to go over the upgrades to our protocol and talk about Soully’s road ahead.
inSPIRIT
With the release of V2, our app has gone through tremendous visual and functional changes. In the timeframe between V2’s release and now, the most effective and popular upgrades have been related to inSPIRIT rewards.
To recap inSPIRIT simply, it is a governance token that requires locking and is designed for the most dedicated users of our protocol. It allows you to vote on proposals, and farm weights and lets you receive protocol fees and extra farm boosts in return.
It is not a mandatory token to participate in SpiritSwap’s DEX actions but is a token that is designed for dedicated users of SpiritSwap to be able to participate closely with the protocol and benefit from doing so.
Why have we designed inSPIRIT in the first place? We needed a system that would separate passive participants from active ones because doing so would allow us to better align our participation systems accordingly. Passive participants don’t need to worry about getting diluted by the active ones; as the active ones commit to locking their SPIRIT for inSPIRIT and hence benefit highly from the protocol doing well in the long term.
After V2, thanks to the change to the real yield model that doesn’t rely on token emissions, but instead distributes fees to inSPIRIT holders based on revenue generation, the inSPIRIT model has seen a massive update in favor of sustainability.
The yield from inSPIRIT distribution has seen more than a 20% increase as a result. Now, if you are an inSPIRIT holder, you can increase your inSPIRIT based on how often the SpiritSwap DEX is performing well, instead of relying on the price action of $SPIRIT.
inSPIRIT is also how we do governance on SpiritSwap, and we have seen a few important governance updates related to governance since the V2 update. More updates regarding the future of SpiritSwap are coming soon, so if you hold inSPIRIT and want to have a say in the future of the most hardworking protocol on Fantom, keep an eye out on our social channels or commonwealth page for new proposals!
New UI
Our new UI takes a more minimalistic approach, compared to our older one. This comes with a couple of advantages like creating more space for tooltips for newbie Defi users and making the app work better for mobile use.
We also utilize the portfolio better with the V2 UI.
Some changes add to the convenience of the UI, but for the most part, the attractiveness and ease of use of pages have been improved. There have been many small improvements so that the UI better accommodates the V2 features, like the liquidity page now supporting both variable and stable pools, and the inSPIRIT tab now highlights every single part of the inSPIRIT process.
Bridge to Bridge Aggregation
Thanks to our integration with li.fi, our new bridge now supports swaps from different chains’ assets. Suppose wanting to swap ETH from Ethereum to FTM on Fantom, this type of transaction is now possible thanks to a new and improved bridge.
Stable and Variable farms
Our farms have been divided into two types with different fee models. Stable (stablecoin) farms, which are farms with stablecoin pairs only, have a fee of only 0,04%, and variable farms have a 0,18% fee.
Our new solidly-like AMM model makes sure that our low fees aren’t detrimental to users who want to provide liquidity, while the low fees make sure users lose as little to fees as possible while using our AMM to make swaps.
Improvements to farm boosts
With our new gauge proxy update, we now have 3 types of gauges: admin, variable and stable gauges.
Admin gauges are core farms for Spirit’s ecosystem: spirit-ftm, usdc-ftm and winspirit pools. From experience, we have learned that keeping these farms at a fairly high emission rate is crucial for the long-term sustainability of our DEX.
Variable gauges get 40%, and stable gauges get 25% of all emissions. Our behind-the-scenes defi masterminds have designed these percentages with long-term sustainability in mind.
Other upgrades and V2.1
Protocol fees for protocols listing on SpiritSwap, bribe UI for our users to better utilize bribes, permissionless Spirit farms, permissionless ecosystem farms to allow other protocols to easily create their farms, and weighted farms to better manage liquidity.
Some of these protocol upgrades are still ongoing and are dubbed V2.1 for the near future. As always, stay tuned!
For more on the V2 upgrades, read this article.
Closing Thoughts
Over the last year, we have slowly but surely made many improvements to the decentralization of SpiritSwap. The implementation of inSPIRIT was the first real step towards this goal, as our users have gained control over farm boosts and later, access to governance.
There is always discussion in the Defi community on whether DAOs are sustainable for the future. For protocols with short-term goals and implementations, DAOs don’t seem to be very popular as token price action can be better controlled by a centralized group of developers with Defi experience.
We as SpiritSwap make an effort to not build based on current trends or sentiments. We try as hard as possible to make SpiritSwap a self-sustainable DEX of the future, one that doesn’t depend on the market sentiment and doesn’t need to be moved by trends. Our goal is simple, we think decentralization and sustainability are the key factors to a DEX that makes sense, and want to make sure SpiritSwap is a DEX with a long-term life.
On the topic of sustainability, the SpiritSwap DAO welcomes any builders out there who want to come and offer solutions to make SpiritSwap even better, all you as a builder need is to make a DAO proposal and the DAO will offer bounties in return.
Besides that, we will soon have key updates to share with our community and possible updates to SpiritSwap that will massively boost its sustainability…
Stay tuned!
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