As the Decentralized Finance (DeFi) space continues growing in popularity, projects are launching daily to meet the increasing demand. Among them is SpookySwap, a decentralized exchange (DEX) and an automated market maker (AMM), allowing users to buy, lend, and swap cryptocurrencies at relatively low fees. This article explains everything about this crypto project. By the end, you should be able to know how it works and maybe try it out later.
What’s SpookySwap?
As mentioned earlier, SpookySwap operates as an AMM and a DEX on the Fantom network. Through the platform, users can transact without intermediaries. Besides offering the common DEX services like token swap, yield, farming, and providing liquidity, SpookySwap lets users bridge their crypto assets across various blockchains using its cross-chain functionality. This allows users to invest in multiple DeFi protocols built on different blockchains to increase their earnings.
Since SpookySwap lives on Fantom, transactions on this platform attract low gas fees. Note that you will need the FTM tokens to pay the fee. The DEX also charges 0.2% in swap fees, which is less compared to many decentralized exchanges.
A Brief History of SpookySwap
SpookySwap became the first DEX to launch on the Fantom network in 2021. Its developers have maintained anonymity since their project went live. Although anonymous, the brains behind SpookySwap usually engage the community using pseudonymous usernames, ooGwei and Eerie, on the project’s Telegram channel.
There have been multiple updates on the Spooky Platform since its launch. The project rolled out its BOO native token a few months ago. Holders of this crypto asset have a say in SpookySwap’s decentralized autonomous organization and can access several farms.
SpookySwap founders say they are currently focused on attracting more developers to create DeFi projects on Fantom. They have set aside funds to support interested developers.
How SpookySwap Works
SpookySwap uses smart contracts to execute orders. On the platform, you can swap tokens through a limit order or at market price. But first, you must connect a crypto wallet that supports the Fantom network.
SpookySwap is known for providing sufficient liquidity. However, like any other decentralized exchange, the trading platform experiences slippage in case of large order sizes.
Further, SpookySwap lets users earn pool rewards in the form of spLP tokens by providing liquidity. These tokens can be staked on SpoookySwap to receive BOO.
What Differentiate SpookySwap From Other DEXes?
SpookySwap has multiple features that separate it from other decentralized exchanges. They include:
Bridge
SpookySwap makes it possible for users to swap crypto between different networks. As of August 12, the feature supports eight cryptocurrencies, including BNB, Avalanche, Arbitrum, and Polygon, among others.
Staking
You can stake your BOO tokens on the SpookySwap to earn passive income. Once you deposit them, you will receive xBOO tokens in the same amount as your stake.
NFT minting
SpookySwap has its own NFT collection known as Magicats. Being a holder gives you access to various perks, including a discount on trading fees.
The Boo Token
As mentioned before, SpookySwap has its native token, which also serves as a governance token. Moreover, the BOO token helps the decentralized exchange to execute transactions efficiently on various blockchains.
BOO’s Tokenomics
BOO’s total supply is capped at 13 million. Here is how 20% of this figure was distributed when the token launched:
- Community Airdrops – 7%
- Developer Funds – 5%
- BOO Stakers Rewards – 4%
- Initial DEX Offering – 2%
- New Boo Bonus – 2%
The remaining BOO token supply (80%) will be allocated to developer funds, DAO BOO, and liquidity pool farm rewards. The tokens will be minted over the next three years.
How to Purchasing BOO
Several centralized exchanges, including Coinbase SoFi, and eToro, support the trading of the BOO token, allowing users to buy it using fiat currencies or by swapping it with another cryptocurrency.
Conclusion
SpookySwap continues to be the Fantom-based DeFi project with the highest total value locked ($23 million). This shows the team behind the exchange is focused on maintaining its status as a market leader. You can participate in SpookySwap by staking, lending, or just swapping tokens. However, we recommend you research on your own before using the platform.
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