🔑Wrapped inSPIRIT
Wrapped inSPIRIT (winSPIRIT) is a term coined for token that implemented the wrapping of inSPIRIT token thus making it liquid and also having dedicated use case(s) on top.
WinSPIRIT token is susceptible to the risk of depegging from the price of SPIRIT token. The peg is maintained via the market and strength of the protocol that developed the respective winSPIRIT. Check out this site courtesy of our good community members for the live analysis of winSPIRIT.
Concepts
For every SPIRIT token that is locked via the wrapped inSPIRIT mechanism, the underlying code consensus will take the SPIRIT token out of circulation in perpetuity thus allowing the protocol to mint a 'liquid' version of inSPIRIT token in the forms of their respective token ticker (refer below).
beSPIRIT
Beluga Finance wrapped inSPIRIT
Why winSPIRIT?
Wrapped inSPIRIT tokens are created by dapps protocols by locking SPIRIT tokens forever in order to increase the APR of their SpiritSwap boosted farm vaults. Holding inSPIRIT enables the vaults to obtain a max boost of 2.5x.
Autofarms and other protocols accumulate inSPIRIT by offering winSPIRIT in return for SPIRIT deposits. The protocol introduces an experimental feature, which functions as an autofarm smart contract by converting the deposited SPIRIT into inSPIRIT, and perpetually relocks that SPIRIT every 4 years. The smart contract functions as a one-way swap, where $SPIRIT is converted into the relevant winSPIRIT entitling the holder to various additional functionality (e.g. transferability outside of the protocol). This means the deposited $SPIRIT is locked in that smart contract forever.
The deposited SPIRIT will never be returned to the user or market. However, the user will receive winSPIRIT, which is transferable, contrary to inSPIRIT which cannot be transferred between wallets.
Last updated