- The SpookySwap has partnered with Axelar and Squid, supporting 20 networks for cross-chain swaps.
- The DEX is the largest on the Fantom Opera network.
The traditional financial system contains several intermediaries like banks, exchanges, and brokerages, which makes the process tiring and often includes opaque charges. The launch of the Ethereum network and the features of dApps and smart contracts laid the foundation of decentralised finance (DeFi).This DeFi ecosystem consists of smart contracts that automatically complete the transactions without relying on any middlemen, leading to opaque charges and trust issues. Several other networks launched later like Solana, Polygon, Fantom Opera, and others, also supported the deployment of such dApps, boosting the development of DeFi.
The Fantom Opera network was built on the Ethereum Virtual Machine (EVM) to support dApps and smart contracts and became highly popular among users because of its high transaction speed, low gas fees, and ability to execute even complex smart contracts. The platform used a unique consensus mechanism called the Lachesis, which helped it achieve near-instant finality.
These features attracted several DeFi users over the Fantom network who were fed up with the slow transaction speed and high network congestion on the Ethereum platform. Several dApps were launched on Fantom and SpookySwap, a Decentralised Exchange (DEX), soon became the largest on the network.
The Strange SpookySwap
The dApp was launched in April 2021 as an Automated Market Making (AMM) and DEX platform and was the first application native to the Fantom network. SpookySwap was launched to keep the traders at forerun, where they could perform quick transactions, owing to the inherent capabilities of the Fantom network.
The native token of the platform is BOO which was launched through Initial Farm Offering (IFO) and Initial Dex Offering (IDO). It conducted several airdrops to give tokens to the community members of Alpha Finance Labs and AlchemixFinance. The platform also conducted several Twitter contests and Build On Opera (BOO) grants for developers. The several features available on the platform are token swaps, liquidity pools, liquidity farms, single stake pools, and others. The swap feature allows users to swap one token for another using automated liquidity pools. While swapping the users have to pay a 0.2% trading fee, out of which 0.03% goes to xBOO traders, and the rest 0.17% goes back to liquidity pools to reward the liquidity providers (LPs).
As discussed by providing liquidity, the LPs can earn the 0.2% trading fee and spLP (Spooky Liquidity Provider) tokens. The tokens directly represent the proportional contribution of a user in a liquidity pool. The spLP tokens can be further staked at liquidity farms to earn BOO tokens. These farms help in maintaining liquidity at SpookySwap, prevent impermanent losses, and help users earn passive income.
Along with these basic features, which are inherent to all the DEXs, SpookySwap stands different from the crowd in its bridge feature. The bridge allows users to move their tokens from other chains/networks to the Fantom chain. Earlier, only 5 networks were supported but now the platform has expanded to support 20 networks. These include Ethereum, Avalanche, Polygon, Celo, Osmosis, Fantom and others.
This was made possible after the partnership of SpookySwap with Axelar and Squid. This is beneficial for users as they do not need to hold wallets and tokens on the other chain. Axelar handles all the processes of converting gas fees from the source network token to the destination network token.
Conclusion
The cross-chain swap feature introduced by SpookySwap has opened up new horizons for DeFi enthusiasts, providing them with an efficient, secure, and seamless way to navigate the ever-expanding world of decentralised finance. As the DeFi ecosystem continues to evolve, SpookySwap remains at the forefront, empowering users to transcend barriers and embrace the boundless opportunities of the future.
