SpookySwap is a project that attracts user attention – an automated market maker (AMM) that provides users with seamless access to exchange, lending, buying, and other DeFi functions at low cost. We explain all the information you need to know about SpookySwap, including how it works and how to use it.
What Is SpookySwap?
SpookySwap is a decentralized exchange (DEX) and automated market maker (AMM) running on the Fantom Opera network. At first glance, it provides users with different ways of trading without intermediaries.
In addition to basic DEX services such as token exchange with increased liquidity and yield farming, SpookySwap also allows users to connect different blockchains through its built-in cross-chain functionality. For example, you can bridge Ethereum, Binance Smart Chain, etc. to increase your yield across different DeFi protocols. It also explores the NFT world and allows users to mint NFTs.
Interestingly, the platform leverages the innovations of the Fantom blockchain to provide these services at low cost. As stated on its website, its deposit or withdrawal fees for farming and adding liquidity are almost zero. SpookySwap charges a 0.2% swap fee (0.22% for limit orders), making it more advantageous than other DEXs. However, to trade on SpookySwap, you must have FTM in your FRC20 wallet. It also uses FTM to pay for gas fees.
In addition to many innovations, SpookySwap has established a series of exciting partnerships with large crypto projects, including Yearn.Finance, Paint Swap, Beefy, Alpha Finance, etc.
The History Of SpookySwap
SpookySwap was founded in April 2021 by Claire Dunlap and Sarah Cooke, along with a team of anonymous developers. SpookySwap’s governance token BOO was launched on April 25, 2021, through IDO, IFO, and airdrops to the AlchemixFinance and Alpha Finance Labs communities. These communities consist of holders, stakers, farmers, and other participants.
Along with the airdrops and fundraising methods mentioned, SpookySwap also focused on other methods of building a user base and bringing developers to the Fantom ecosystem.
These methods consisted of contests and international outreach on Twitter and BOO (Build On Opera) developer grants.
How does it work?
SpookySwap is an AMM and DEX hosted on the Fantom blockchain. The AMM uses smart contracts (a set of code written on the blockchain) to set up and execute orders. As a decentralized protocol, SpookySwap has no governing regulatory body.
Trading on SpookySwap involves exchanging tokens at market price or through limit orders. Once the wallet is connected to the Fantom Opera network, you can explore and trade tokens. The exchange platform charges a 0.2% trading fee for market orders and a 0.22% trading fee for limit orders. Typically, SpookySwap uses trading fees to buy back BOO tokens.
Like standard DEXs, SpookySwap uses the algorithmic constant function X * Y = K to determine prices. In this case, X and Y represent the token quantities in the mining and liquidity reserve tokens. SpookySwap uses this mathematical model to determine the new ratio between two assets.
Usually, exchanging one token for another would cause an imbalance in the token ratio in the liquidity pool. And the price would automatically adjust to the new token ratio. SpookySwap provides enough liquidity for users. However, as order volume increases, slippage may occur.
SpookySwap also allows users to earn rewards by providing liquidity to the pool. These rewards are usually spLP (Spooky Liquidity Provider) tokens, which describe their combined token ratio in a pool. Liquidity providers can stake spLP tokens on SpookySwap and earn BOO. Users can also stake on other platforms.
SpookySwap offers various DEX features to enhance the DeFi experience for traders.
- Swap: From this panel, you can easily swap tokens and do your trading activities.
- Liquidity: You can add equal-value parts of two different tokens to a liquidity pool to become an LP and earn yield.
- Farm: You can stake your LP tokens to earn BOO.
- Stake BOO: Stake your BOO tokens from this panel to earn transaction fees and other projects’ tokens.
- Bridge: You can use SpookySwap Bridge to trade your assets from Fantom to other blockchains and vice versa.
- NFT: The genesis NFT collection of SpookySwap, Magicats, which consists of 5000 NFTs, can be accessed from this panel. The panel also gives you more info about Magicats and other upcoming SpookySwap NFT collections.
The tool allows users to exchange tokens between two different chains. You can transfer funds from Fantom to other chains, but it incurs a fee. Thus, you can use the FTM token on Ethereum.
SpookySwap Bridge currently supports eight tokens, including Ethereum, BSC, Arbitrum, Avalanche, Polygon, etc., for bridging with Fantom. More tokens are expected to be added as the project develops. Additionally, it is supported by Multichain/AnySwap.
Staking – xBoo
SpookySwap also allows users to earn more profits by staking BOO tokens on the platform. Once deposited, you will receive xBOO tokens equal to your staked assets. The default ratio is displayed in the pool as 1 xBOO = 1 BOO and increases over time.
When you deposit BOO tokens into xBOO (BOO buyback mining pool) and then deposit into a given mining pool, you will receive APY. Liquidity providers receive 0.17% of the transaction, with 0.03% going into the swap contract involved in the transaction.
Some DEX platforms have rough designs that make it difficult for users to have a smooth trading experience. SpookySwap has a comprehensive design. Navigation, connecting wallets, and exchanging tokens are all easy. Additionally, you can easily deposit your crypto assets into liquidity pools.
Mint NFT on SpookySwap
In addition to farming, you can also increase SpookySwap’s yield by owning Magicats (the project’s official NFTs). These NFTs are related to SpookySwap’s mascot cat characters Grim and Ace.
SpookySwap Compatible Wallets
Various wallets are compatible with SpookySwap, making it more convenient for you to store or trade BOO tokens. SpookySwap compatible wallets are MetaMask, MathWallet, Trust Wallet, CoinBase Wallet, WalletConnect, and TokenPocket.
SpookySwap Finance is the largest DEX on the Fantom blockchain by TVL. BOO is the utility and governance token of SpookySwap and can be used in various ways, such as staking or purchasing NFTs
SpookySwap offers unique DeFi features, such as SpookySwap bridges, which make it possible to swap tokens from blockchains other than Fantom.
Here is a list of FAQs about SpookySwap Finance with detailed answers.
How Do I Invest In SpookySwap?
You can invest in SpookySwap Finance by using the platform for trading or simply buying BOO tokens.
Who Owns SpookySwap?
SpookySwap Finance was created by Claire Dunlap and Sarah Cooke. Dunlap is the co-Founder of Midsummer Scream and Cemetery Line, and Cooke is an Instagram influencer (@the_pumpkin_queen) and the owner of GOREnaments.
Is SpookySwap Finance Safe?
SpookySwap Finance is a safe ecosystem for the daily trading of crypto assets. In fact, most decentralised exchanges are safer than centralised ones since hackers can easily grab cash from a CEX, and it won’t be as easy in a DEX ecosystem.