Introducing LiquidSpirit, a wrapped version of inSPIRIT
The past few weeks have been intense in terms of development to push this product out and now it is finally here — not a moment too soon before the next wave of liquidity hits us.
We want to introduce our upcoming release that will unleash the full power of our partnership with SpiritSwap. With optimizing yields for xLQDR being our main objective, we have come up with a product that will take the SPIRIT rewards to another level. It allows us to maximize our inSPIRIT holdings, thus taking full advantage of their gauge system, boosting the rewards even further. LiquidSpirit, abbreviated as “linSPIRIT”, will be a game changer for us.
Unleashing the Power
LiquidSpirit is a wrapped version of inSPIRIT. It is designed to unlock holder’s position by opening up a whole new market for linSPIRIT, while still being able to enjoy weekly volume based fees from inSPIRIT.
Users can then swap their SPIRIT for linSPIRIT at a 1:1 ratio using our LiquidSwapper. In order to trade their linSPIRIT back to SPIRIT, users will need to use a DEX, such as SpiritSwap.
When users swap SPIRIT for linSPIRIT, we lock the SPIRIT forever on a weekly basis. We then use the inSPIRIT received to boost yields for the SPIRIT-FTM, wETH-FTM and wBTC-FTM pairs, increasing yields for xLQDR holders.
Previous experiments have shown that this strategy can be a massive success. Convex’s cvxCRV alone has attracted a market cap of over 300 million USD. Although users seem to accept the peg for products like these, it is ultimately market forces that control the price.
InSPIRIT on Steroids
The motivation behind linSPIRIT, in addition to driving more revenue for xLQDR holders, was to offer a new alternative to inSPIRIT with major advantages.
First and foremost, your position is liquid, meaning you can swap back to any other token at your convenience using a DEX.
Secondly, you get to pick from two possible strategies to earn yield.
- You can stake your linSPIRIT to weekly rewards from inSPIRIT
- You can provide liquidity for linSPIRIT/SPIRIT and earn LQDR
The level of boost you get by choosing linSPIRIT instead of inSPIRIT depends on the ratio of locked SPIRIT and the staked linSPIRIT. Having a boost ratio of two, for example, means your linSPIRIT earns twice the yield inSPIRIT does.
Maximize the Synergies
We believe this innovation will offer a solution for those that want to be invested in both platforms, ours and SpiritSwap’s. The synergies are clear, and with the upcoming gauge system, we want to hold as much inSPIRIT as possible to increase yields for xLQDR holders.
Get your SPIRIT ready, because we are about to catch the next wave and ride it to a world of whole new possibilities.
