Looking for those DeFi app's demonstrating (at least some) success at getting their "tokenomics" right? Yeah, me too ...
Check this out!
Within less than 2 hours, there was an impressive sequence of events in the community engaging in SpookySwap Finance's Discord server.
When someone asked for a "long version" explanation of the "deflationary effect" referenced in the announcement illustrated above, this was provided minutes later:
BOO is slowly being emitted for farm rewards. If BOO had zero volume, the value per BOO would slowly drop, since circulating BOO is inflationary (but with a limited maximum supply). But trade fees are being used to buy BOO through xBOO. And as xBOO buys back BOO at the market price, it increases the price of BOO thanks to AMM DEX price calcuations. So a combination of our emission rate for farm rewards slowly decreasing and our DEX volume increasing (as shown in the announcement's infographic) has caused the buy pressure from xBOO to increase the value of BOO faster than the emission rate decreases it, causing a price increase even at zero BOO volume. A few coins try to create the same effect of price increasing even at low/zero volume by having tokens be deflationary and burn circulating supply over time.
Which was followed by this impressive transaction, within an hour:
Coincidence? Perhaps. But, I doubt it, as "smart money" tends to keep (very) close tabs on what is happening with their investment and does not take long to make decisions on major "good news" like this.
As we can all agree, a single $1.3M investment (is @onealfa dabbling in SpookySwap? 😉) into any DeFi platform is a notable event. Certainly it was the case with SpookySwap. The original announcement and this follow-up to it made a favorable enough impression on me to take the time to bring it to your attention.
SpookySwap Finance
Like what you see, dear reader? Launching in April 2021, here is what SpookySwap has to say about their "Full Feature Tokenomics:"
We are working towards a platform governed through community voting, with expert trading mode, a fast polished UI, and limit orders.
If you like the sounds of that and want to consider adding to the $652m in SpookySwap's TVL, here are some "starter" links, for DYOR:
- SpookySwap's Roadmap documentation.
- SpookySwap's CertiK audit documentation.
- SpookySwap's own Bridge documentation.
- SpookySwap's Discord server.
Note: In their #faucet-request channel, you can get help with a small amount of FTM, to get you started on the Fantom blockchain! Just follow the steps in the pinned doc in that channel ...
SpookySwap is not the biggest platform (currently #4) on the Fantom blockchain, but I like the fact it is unique to Fantom. SpookySwap's UI is a bit whimsical for my tastes, but it is creative and pretty well done. It seems to be a "hit" in their Discord server and there seems to be a lot of productive "energy" in there.
Bottom line: For my investments, there is a lot to like about this platform! 👍
Having chosen myself to invest into the Fantom blockchain starting this past October, I already had a stake in SpookySwap, which is why I knew what was happening on their Discord server. As a long-term investor, this good news will make me take a second, closer look at increasing it.
Closing
Ending a "short and sweet" (for me) post, dear reader, I suspect we all have been somewhat set back by the crypto market over the last several days. I certainly was hoping for a better end to the year, but ... It is "crypto," afterall, so I am "OG" enough to have been through this many times. In the midst of it, though, it is nice to find some good news to celebrate.
While the LeoFinance community waits for the launch of the PolyCub platform, we can all take some encouragement in knowing @khaleelkazi and his dev team are constantly on the lookout for ways to improve the long-term viability of what they are building. If they choose to look into it, perhaps they will find something in SpookySwap's approach worth emulating.
I’d love to hear any feedback you may be inspired to provide.
Until "next time," all the best to you for a better tomorrow, as we all work together to build up our Hive Communities and add increasing value to our Hive blockchain! 👍 😊
Respectfully,
Blogger @roleerob
Hive "Dolphin" 🐬, LeoFinance "Whale" 🐋, & Man Cave "Dragon" 🐉
P.S. I am not a financial adviser. Please consider this post as financial information and / or opinion only. Please perform your own due diligence, in whatever manner seems best to you, if you have found it to be beneficial.
🌲 No trees were harmed in the publishing of this post! 🌲
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Thank you JK!
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Teamwork ...
... for the win!
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Seems like Boo is getting some attention these days. It has been a "flagship" AMM on FTM for a while now but I'm still skeptical about Uniswap-like tokens.
It's no coincidence that someone got in big as soon as they understood the tokenomics, that is for sure but I just can't seem to find the underlying value just yet.
As a token holder, you don't get much value out of the token itself beyond governance and a very small percentage of the fees if you are staking. This applies to all tokens so I'm not trying to single out Spookyswap in any way.
Without an increase in exchange fees, the long-term value of all AMM tokens will have to go down IMO. Even at 10% APY many of these are highly overvalued with BOO actually looking good when compared to others.
Fully diluted MC vs TVL is at 0.28 while Uni is at 1.77
My holdings aren't significant enough to make an informed guess but just out of pure logic I'm finding it hard to see how I'll extract $16 from 1 Boo token even if I give it 3-4 years' time. If I lock it for 12 months and the market tanks no APY will be high enough to cover those losses.
Yes, there is some long-term potential in all of them but we still don't have a useful valuation model because TVL vs MC doesn't make sense in every situation.
Would love to know how others are estimating price ranges that are considered a good buy for any of the AMM tokens out there.
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You have made some good points and I will not pretend I have answers for them. Overall, my view of this new "virtual world" is there is a lot of "hopium" built into it. We'll all see, in time, how "real" it is.
For now, I intentionally look for platforms that appear to have at least some semblance of real world sanity (as much as I can discern anyway, without being a dev ...) involved in their construction. At least at that level, I think SpookySwap has some attributes worthy of a closer look ...
Thank you for providing this comprehensive reply, even if a bit "contrarian" to this post. I don't mind that at all. I actually prefer it. I wish there were more of it "allowed" by the uhhh ... "big boys" ... But, like you, my stake is not significant enough to have an impact, so ... I just do what I can, here and there ...
Onward and upward! 🦁🚀
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So far it seems that we are all doing the same thing and that's why I was asking if there was any other perspective than the one we already have. And you can't really know that unless you discuss the good and the bad.
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Yes, agreed. That is the way progress is made, from the experience base of my long professional life. As long as it can be done civilly and respectfully ... Which seems increasingly rare these days ...
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Whales move faster
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They are decisive, then move quickly to act upon their convictions. That is why they are whales ...
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You’re absolutely right
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Well that token chart is choppy, but overall positive. the tokenomics are interesting, so its definitely worth a good look.
thanks
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Here is the key to me ...
... and why I stopped what I was working on to write this post.
Most of the DeFi platforms I have been involved with haven't been anywhere close to this.
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Hello @roleerob,
Would love to talk to you about the articles you have been writing. We are looking for a DeFi content writer for our website. If you are interested, send me a DM on twitter @MosDefi.
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While I appreciate the thought, I wouldn't be a good candidate. I do not have a Twitter account nor do I ever intend to get one. Thanks anyway!
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