The DeFi space has many projects, but not all offer low fees and reliability. SpookySwap addresses this by providing a low-cost, fast DEX on the Fantom Opera network, with UI/UX upgrades that improve its usability. Here’s everything you need to know about this go-to platform for secure and efficient DeFi trading in 2024.
KEY TAKEAWAYS
➔ The native BOO token serves as the governance and staking currency of SpookySwap, with a total supply of 13.66 million tokens. xBOO allows stakers to earn rewards from multiple partner projects.
➔ SpookySwap Version 3 brought concentrated liquidity and dynamic fee tiers (0.1% to 0.5%) to the platform, making it one of the few DEXs that optimize returns for liquidity providers.
➔ While it’s no longer the top decentralized exchange (DEX) on Fantom, SpookySwap remains a strong contender with its unique features like the Magicats NFT collection and Orbs Liquidity Hub integration, making it a decent choice for users looking for diverse earning options.
What is SpookySwap?
SpookySwap is a decentralized exchange (DEX) and an automated market-maker (AMM) running on the Fantom Opera network. On the surface, it offers users different ways to transact without any intermediary.
Besides the basic DEX services, such as token swaps and yield farming, SpookySwap also allows users to bridge different blockchains via its built-in cross-chain feature. For example, you can bridge Ethereum, Binance Smart Chain, etc., to increase your earnings across different DeFi protocols. It also allows users to mint NFTs.
Did you know? In June 2024, SpookySwap partnered with Orbs’ Liquidity Hub, optimizing trade execution and reducing slippage.
Interestingly, the platform taps from the innovations of Fantom blockchain to provide these at low fees. As stated on the website, there are near-zero deposit or withdrawal fees for farming and adding liquidity.
SpookySwap charges a swap fee of 0.2% (0.22% for limit orders), which gives it an edge over other DEXs. However, to transact on SpookySwap, you must have FTM in your FRC20 wallets. It also uses FTM for gas fees.
Alongside many innovations, SpookySwap also boasts a list of exciting partnerships with big crypto projects, including Yearn.Finance, Paint Swap, Beefy, Alpha Finance, etc.
The history of SpookySwap
SpookySwap is one of the first automated market-making (AMM) decentralized exchanges (DEX) to be built on the Fantom Opera network.
The platform was launched in April 2021 by a team of unknown developers. Interestingly, the team is said to have a solid knowledge of popular AMMs on Binance Smart Chain and Ethereum work.
Since its launch, the platform has been working on several updates to improve users’ trading experience. It is essentially invested in its native token, BOO, as a governance token. The token also grants access to various farms, a built-in bridge, and other flexible services.
Did you know? The governance model for SpookySwap evolved with the introduction of xBOO, which allows users to vote on community proposals. The staking of BOO to earn xBOO is a crucial aspect that differentiates it from other governance models.
How does it work?
SpookySwap is an AMM and DEX hosted on the Fantom blockchain. AMMs utilize smart contracts, a set of codes written on the Blockchain, to set and execute orders. As a decentralized protocol, Spookyswap has no regulatory body governing it.
Trading on SpookySwap involves swapping tokens at market price or through limit order. And once you connect a wallet to the Fantom Opera network, you can explore and trade a token. The exchange platform charges a 0.2% trading fee on market orders and a 0.22% fee on limit orders. Typically, SpookySwap uses trading fees to buy back BOO tokens.
Like standard DEXs, SpookySwap uses an algorithmic constant function X * Y = K to determine prices. In this case, X and Y stand for the number of tokens in mining and liquidity reserve tokens. SpookySwap uses this mathematical model to determine the new ratio between the two assets.
Typically, swapping one token for another unbalances the ratio of the tokens in a liquidity pool. And the price automatically adjusts to the new token ratio. SpookySwap provides enough liquidity for users. However, with increasing order sizes, slippage is likely to set in.
SpookySwap also allows users to earn rewards by providing liquidity to the pools. These rewards are usually spLP (Spooky Liquidity Provider) tokens, depicting their ratio of pooled tokens in a certain pool. Liquidity providers can stake spLP tokens on SpookySwap and earn BOO. Users can also stake on other platforms.
Fact check: SpookySwap is hosted on the Fantom Opera network, which is a directed acyclic graph (DAG)-based smart contract platform. While often referred to as a blockchain, Fantom technically uses a DAG architecture that improves transaction speed and efficiency.
What makes SpookySwap unique?
The DEX offers many fascinating features that differentiate it from other platforms. Besides the basic functions, including token swap, SpookySwap offers users the following features.
Bridge
This tool allows users to swap tokens between two different chains. You can transfer your funds on Fantom to other chains for a cost. As a result, you can use FTM tokens on Ethereum.
SpookySwap bridge currently supports 12+ tokens, including Ethereum, BSC, Arbitrum, Avalanche, Polygon, etc., for bridging to and from Fantom. More tokens are expected to be added as the project grows. Additionally, it’s powered by Multichain/AnySwap.
Fact check: The bridge is still powered by Multichain/AnySwap in 2024, but it has been further optimized for faster and cheaper transfers.
Staking — xBoo
SpookySwap also allows users to earn more profits by letting them stake BOO tokens on the platform. Once you’ve deposited your token, you’ll get xBOO tokens equivalent to your staked asset. The default ratio shows on the pool as 1 xBOO = 1 BOO and will increase over time.
When you stake your BOO tokens into xBOO (Buyback BOO Pool) and then into a given pool, you will earn APY. Liquidity providers receive 0.17% of the trading, and 0.03% goes to the swap contract involved in the transaction.
Important: The staking ratio between BOO and xBOO fluctuates based on the rewards generated and the performance of staked pools. The 1:1 ratio is not static and may vary depending on buyback mechanisms and staking pool performance.
Intuitive interface
Some DEX platforms have these rough designs that make it challenging for users to have a smooth trading experience. SpookySwap has a comprehensive design. It is easy to navigate, connect a wallet, and swap tokens. Furthermore, you easily deposit your crypto assets in a liquidity pool.
Mint NFTs on SpookySwap
Asides from farming, you can boost your yield on SpookySwap by owning Magicats — the project’s official NFTs. These NFTs are related to SpookySwap’s mascot cat characters, Grim and Ace.
Did you know? While Grim and Ace are the original mascots, newer Magicat NFT collections have introduced additional variations and utility features, including yield-boosting properties for LPs and partnerships with other NFT platforms.
The evolution of SpookySwap
SpookySwap’s development across its three major versions brought in several cool features, improving both trading capabilities and user experience. When the platform first launched as Version 1 in 2020, it focused on providing basic swaps with a flat 0.2% trading fee. It used simple liquidity pools and supported just Ethereum and Binance Smart Chain for cross-chain bridging. The user interface was minimal, and the main appeal was low fees and fast trades on the Fantom Opera network.
Did you know? With Version 2 (2021), SpookySwap introduced limit orders for tighter trade execution, and the fees were adjusted to 0.22% for limit orders to support this advanced feature. This version also expanded support to more chains, including Polygon and Avalanche, allowing users to swap assets across 6+ networks. Single-sided staking pools were added, making it easier for users to earn by staking just one token instead of pairing tokens. By this point, SpookySwap had over $1 billion in Total Value Locked (TVL).
What’s New in Version 3?
Launched in mid-2024, Version 3 included concentrated liquidity management and a dynamic fee model ranging from 0.1% to 0.5%, depending on pair volatility and liquidity depth.
This upgrade also integrated Orbs’ Liquidity Hub, reducing slippage and enhancing capital efficiency. V3 added support for 12+ blockchains, expanded to OKExChain, and introduced stop-limit orders for professional traders.
At its peak, SpookySwap V3 managed over $2 billion in TVL, becoming one of the top DEXs on Fantom.
Benefits of SpookySwap
Several benefits contribute to the overwhelming growth SpookySwap has seen over the past few years. It boasts of many appealing benefits, and this section will explore some of them.
Swap between different networks
On SpookySwap, you can instantly swap any crypto assets supported by Fantom. Additionally, since many cryptocurrency tokens are Ethereum tokens, the platform provides a way for users to trade across multiple blockchains to increase their earnings.
Liquidity
Liquidity in a DEX platform is the trader’s ability to easily trade the assets without incurring slippage and other trading commissions. In a worse scenario, traders might be able to trade their desired crypto assets swap.
This is where SpookySwap’s volume is a remarkable benefit. SpookySwap is the second biggest decentralized exchange on Fantom in terms of total value locked (TVL), only after WigoSwap.
SpookySwap’s integration with the Orbs Liquidity Hub in 2024 enhanced liquidity depth, making it one of the few DEXs on Fantom capable of reducing slippage significantly, even for large trades.
Depositing trading fees back to the pools boosts the project’s liquidity, thereby improving users’ trading experience.
SpookySwap allows everyone to earn by providing large liquidity to the market and then collecting trading costs. Adding liquidity is as simple. You deposit tokens into a pool and receive pool tokens, which you can withdraw at any time.
Optimized yield farming
SpookySwap allows users to explore different farms, add liquidity to the protocol, and gain high rewards. You will get rewarded for depositing your tokens to the pools. For example, you lend your FTM tokens and earn BOO tokens as returns.
Presently, SpookySwap’s Farming currently offers an Annual Percentage Yield — APY of about 40%. This is pretty high compared to other projects.
Fact check: Current APYs for SpookySwap’s farming pools vary greatly, with the majority ranging between 15% and 50%, depending on the specific pool and token volatility. The most profitable pools are often partnered xBOO staking pools that offer rewards in BOO and other project tokens like SPELL and FTM.
How to use SpookySwap
To use SpookySwap effectively, you’ll need to have the right setup and understand its various functions. Here’s a quick guide to getting started:
Install MetaMask
First, install the MetaMask wallet extension on your browser. MetaMask will act as your gateway to connect to the Fantom Opera network. Once installed, switch your network to Fantom Opera by adding the custom RPC settings:
- Network Name: Fantom Opera
- RPC URL: https://rpc.ftm.tools/
- Chain ID: 250
- Currency Symbol: FTM
- Block Explorer URL: https://ftmscan.com/
Connect your wallet to SpookySwap
Go to the SpookySwap homepage and click on “Connect Wallet.” Select MetaMask and ensure it’s set to the Fantom Opera network. This step will allow you to start swapping, staking, or farming tokens on the platform.
Add FTM for gas fees
You’ll need a small amount of FTM in your MetaMask wallet for gas fees. The gas fees on the Fantom network are significantly lower than Ethereum, usually costing less than a cent per transaction. If you’re short on FTM, you can bridge it from another network using the SpookySwap bridge or obtain a small amount via free faucets like the Fantom Discord Faucet.
You can learn how to get free gas from Fantom here.
Swapping tokens
- Navigate to the Swap section.
- Choose your “From” and “To” tokens, input the amount, and click on “Swap.”
- Review the swap details, including price impact and fees, then confirm the transaction.
Providing liquidity
- Go to the Liquidity tab.
- Select the token pair you wish to add to a liquidity pool.
- Deposit an equal value of both tokens (e.g., FTM and BOO) and approve the transaction.
- Once you’ve added liquidity, you’ll receive spLP tokens, which represent your share in the pool.
Staking BOO for xBOO
- Head to the Stake section.
- Deposit your BOO tokens to receive xBOO at the current staking ratio.
- xBOO earns rewards from partner staking pools, including tokens like SPELL and WOO.
Using limit orders
- Click on the Limit Orders tab under the Swap menu.
- Specify the desired token pair and set your target price.
- Once the market hits your price, the order will execute automatically, ensuring you don’t have to monitor trades 24/7.
Yield Farming
- Choose a farm from the Farms tab.
- Deposit your spLP tokens into the selected farm to start earning BOO rewards.
- Annual Percentage Yields (APYs) vary depending on the farm and liquidity, ranging from 15% to 50%.
What is BOO token?
BOO is the native currency of SpookySwap that governs and oversees all the operations on the platform. You can deposit BOO tokens into pools to earn xBOO in return. Buyback BOO (xBOO) signifies ownership of a portion of the pool. While xBOO is generated from trading costs earned by the protocol, you can also trade it and earn a share of the trading revenue produced by the protocol.
Fact check: xBOO itself is not traded like a regular token. Instead, it acts as a receipt for staking BOO, enabling users to earn rewards in other tokens through partner pools like SPELL and WOO.
You can also vote and decide on future proposals of the project with your staked token. The voting value is determined by whether BOO is in a liquidity pair (5 votes) or in a pool (3 votes).
Using the BOO token enables SpookySwap to process transactions more effectively across blockchains.
Tokenomics
BOO has about 13 million tokens in total. The initial supply accounted for 20% of the total max supply, which goes to community airdrops, IDO, and more. Here is a full list of the initial distribution.
Initial distribution
- Community Airdrops: 7.0% goes to airdrops
- Locked Developer Funds: 5.0% is used as developers funds
- BOO Single Stake IFO: 4.0% of the total max supply is distributed to BOO stakers over the course of 15 days, although originally slated for 12 weeks.
- IDO: the 2% allocated for Initial DEX Offering is worth about $50,000 FTM, resulting in the initial price token being $0.18. The developers’ tokens are locked for a period of 52 weeks.
- New Boo Bonus: 2.0% is used as a bonus.
Supply for emissions
The emissions are distributed as follows:
- LP Farm Rewards: 72.7%
- Developer Funds: 5.3%
- DAO BOO: 2.0%
The remaining supply (LP Farm Rewards, Developer Funds, and DAO BOO funds), 80% of the total, is minted over three years with a decreasing supply.
Is SpookySwap worth your time?
SpookySwap remains a strong contender in the Fantom ecosystem, offering solid utility through its unique features like cross-chain swaps, concentrated liquidity management, and diversified staking rewards. While no longer the largest DEX on Fantom, it still holds a significant position, making it a viable option for both new and experienced DeFi users.
Disclaimer: This article is intended for informational purposes only and should not be taken as financial or investment advice. Investments in tokens like BOO and WU come with inherent risks, including market volatility and the potential for loss of principal. Always conduct thorough research and consult with a financial advisor before making any investment decisions. The author and platform do not endorse or recommend any specific investment and encourage readers to invest only what they can afford to lose.
Frequently asked questions
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