First Understand Fantom
To Understand Fantom Spiritswap, you must first understand Fantom.
Fantom is a fast, cheap, scalable, decentralized, and secure blockchain platform. As a result, Fantom not only supports DeFi development, but also develops to meet the requirements of institutions and governments. Such as financial markets, institutional finance, CBDC (Central Bank Digital Currency), real estate, smart healthcare, and more. Fantom uses Lachesis, an innovative aBFT consensus mechanism. This mechanism implements notable features such as speed, security, scalability, and EVM compatibility. The main features of this algorithm are:
- Asynchronous: Users are free to process commands at any time.
- Readerless: No one can control the system alone.
- Byzantine Fault Tolerant: Works even if 1/3 of the knot is defective or malicious.
- Final: Transaction is confirmed within just 12 seconds. This can be considered immediate.
The Fantom Ecosystem
On September 6, 2021, Fantom introduced a separate category in its blog: Fantom Ecosystem Spotlight - a program created to enable various Fantom projects to interact directly with the Fantom Foundation, thus forming a close bond between the 3 participants: the Fantom Foundation, the project itself, and its community. Most recently, Fantom Ecosystem Spotlight featured SpiritSwap - one of the biggest projects on Fantom. As you can see, projects being on the Ecosystem Spotlight are mostly the core legos of the ecosystem: Grim Finance, Scream, SpookySwap, Geist Finance,… and now there is SpiritSwap. Imagine the next protocols being featured. Will you see them as trustworthy as any other protocol here? If the answer is “yes”, then Fantom Ecosystem Spotlight has shown its efficiency.
In September 2021, Fantom launched a category on their blog. It’s called the Fantom Ecosystem Spotlight, a program that was created to allow various Fantom projects to interact directly with the Fantom Foundation, building a close relationship between the three participants: Fantom Foundation, the project itself, and its community. Recently, Fantom Ecosystem Spotlight announced SpiritSwap, one of Fantom’s largest projects. As you can see, most Ecosystem Spotlight projects are ecosystem core legos. GrimFinance, Scream, SpookySwap, Geist Finance and more. And now we have Spirit Swap.
How Does Fantom (FTM) Work?
Fantom (FTM) recognizes the limitations of current blockchains in the crypto world and plans to overcome them. The decentralized, scalable, unlicensed, and open-source FTM platform gives it an edge over major blockchains. Consequently, Fantom cuts costs and increases the performance of decentralized applications (DApps) through Lachesis - a non-deterministic, DAG-based asynchronous algorithm that runs Fantom’s Opera backbone. The main goal of Opera mainnet is to enable the use of smart contracts through Ethereum’s EVM (Ethereum Virtual Machine). A unique element of Fantom is that its network is completely independent, which means that the performance of one area of traffic congestion does not affect other parts of the network. This high level of scalability is provided by Fantom (FTM) for each application with a personalized (independent) blockchain with custom rules of governance, tokens, and tokens.
Unlike Ethereum, which is a single decentralized platform, Fantom combines a multitude of decentralized systems to interact with each other even though they operate independently in their particular domains. One big problem that Fantom solves is the “Blockchain Triad”. The blockchain triad is the balance between speed, security, and decentralization that can be difficult achieve at the same time. However, Fantom uses an unauthorized protocol to provide decentralization and security. It also uses Asynchronous Byzantine Fault Tolerance (aBFT) to process transactions asynchronously, increasing the speed of the overall process.
What is fantom SpiritSwap (SPIRIT)
Fantom SpiritSwap cryptocurrency is a DEX or decentralized exchange launched on Fantom Opera Chain. It works like Uniswap DEX, using a continuous AMM product to create a market to eliminate high slippage. In an automated market maker with the constant product, P * X = A. Here, P represents one token, X represents another to form a pair. While A is an LP token to liquidity providers at execution. Thus, every time someone trades a pair of tokens from the Spirit Swap liquidity pool, a percentage of the fee goes to the liquidity providers. In addition to MA, SpiritSwap launched yield farming, blockchain bridge, and NFT marketplace.
Benefits of fantom spiritswap
By using Spirit Swap you can get a lot of benefits:
- Earn a percentage of every trade in a pool when you stake your SPRT LP tokens at one of SpiritSwap farms.
- Appreciate your SPIRIT tokens that you own. Over time, SPRT tokens can increase in value, and early farming can lead to large profits while the token is live.
- Transaction fees are lower than Ethereum.
- Transactions are faster than Ethereum.
- SpiritSwap also has some great features:
- Swap - Users can trade tokens on Fantom through SpiritSwap’s automated cash funds. Each swap on SpiritSwap results in 0.3e.
- Liquidity - Spirit Swap provides users with an easy way to provide liquidity for tokens on Fantom through an Automated Liquidity Reservoir (LP). About 83% of fees go to liquidity providers in a given liquidity pool.
- Farm - Farm on Spirit Swap is to earn money on DEX. SpiritSwap will distribute $SPRT tokens to liquidity providers on selected farms.
- Stake - Stake SPRT tokens to receive the revenue generated by the SpiritSwap protocol. A 17% allocation of fees are directed to the protocol fee vault for redemption and deposit of SPRT into the staking pool.
Bryce MacCarthy is the author of this post.