SpiritSwap has announced that they have reached a partnership agreement with Resonate. So how will this partnership work?
SpiritSwap has committed to distribute $10,000 worth of SPIRIT to be included in a MIM-USDC SLP pool at Resonate.
Initially, $2,500 worth of SPIRIT will be distributed to this pool, plus $7,500 worth of SPIRIT will be kept in reserve for use when needed. SpiritSwap will offer a 6% return as an upfront bribe to MIM/USDC liquidity providers to lock up their liquidity for 1 year. This is expected to catalyze an increase of over $160,000 in TVL within SpiritSwap, which is being built on top of the Beefy Finance farm they will be using.
This means that if you were to make $100 worth of lps for 1 year, you would have the option to lock your lps in an FNFT through Resonate for the period. This will result in an instant payout of $6 worth of SPIRIT paid into your SpiritSwap funded wallet. MIM/USDC LP keeps the master rights locked in your own unique FNFT, while Spiritswap gains ownership of your future earnings through a separate FNFT. This allows SPIRITSWAP to purchase USDC-MIM at a highly discounted rate, as the farm is projected to produce an annual yield of about 11% – this means that SPIRITSWAP receives about $18,000 worth of USDC-MIM for its initial SPIRIT expenses.
Where Will The Harvest Come From?
Once connected to the MIM/USDC pool, Resonate will route these MIM/USDC LPs to the MIM/USDC Beefy Vault and then group them in SpiritSwap.
SpiritSwap estimated that by integrating this program with Resonate, it would earn over $18,000 in MIM/USDC Spirit lps from the allotted $10,000 worth of SPIRIT.
The benefits that can be seen from this initiative can be listed in this way;
- Since SpiritSwap will offer Spirit in advance and earn a return on its MIM/USDC LPS; Spirit is essentially performing a synthetic swap.
- The program will help SPIRITSWAP convert its treasuries into stablecoins through this synthetic exchange.
- As an added effect, SpiritSwap will gain over 80% on distributions. It also offers SPIRITSWAP the opportunity to grow its treasures.
SpiritSwap is a DEX in the Phantom Opera Chain. It combines core DeFi solutions such as Yield Farming, Liquidity Provision, Lending & Borrowing, Stable Swaps, Cross-chain bridging, and Tokennomics, Protocol rewards, Leverage Trading, and Limit orders, all under one roof.
Resonate is a Yield Futures Trading Protocol developed by Revest Finance and built on Revest’s Financial NFT (FNFT) technology. Using Resonate, we can separate the principal and interest components of a position by issuing two FNFTS; one containing the principal and the other future interest rights on that principal. Resonate facilitates the trading of future vested interests by matching issuers and buyers.