- SLP is the in-game currency on Axie Infinity.
- The ERC-20 token is used to breed new Axies.
- It can be generated only through gaming.
Axie Infinity is rewriting the gaming history through some bold moves. The Pokemon-inspired game has grown to become one of the largest NFT projects to date by creating a crypto economy based around video gaming. If Axies (tokenized digital pets) are selling like hotcakes on NFT marketplaces with a trading volume of around 27.5K ETH, the price of AXS token (the governance token of the ecosystem) has jumped up 135.5% in just 14 days.
Away from all the limelight, there is another token that is silently working its way through the platform — Smooth Love Potion. Let’s find out how the token plays an integral role in nurturing the Axie Infinity gaming ecosystem.
The relevance of SLP tokens on Axie Infinity
If you are familiar with Axie Infinity, you should already know that you need to either buy or breed Axies to keep playing the game. They are customizable fantasy creatures that you can train to battle. The whole concept of the game is built around them. Although you can buy Axies on NFT marketplaces using ETH, the same doesn’t apply to breeding.
Axies can be only bred by burning SLP tokens. And SLP tokens can be generated only by playing the game. Thus, each SLP and Axie lives a testimony to the fact that a human has invested time and skills on the platform.
How to earn SLP tokens?
To earn SLP tokens, you need to play the game. You can enter the gaming platform only if you have at least three Axies. They sell for anywhere from $138 today. Fulfill daily quests and win battles, you will see SLPs flowing into your account depending on your level of gaming skills and the resources spent. That’s why the term ‘play-to-earn’.
If you can’t afford to buy Axies, you can always loan them by signing up for scholarship programs. Owners will lend you Axies based on your gaming prowess. However, in this case, the SLPs earned are split between the gamer and the owner. As the saying goes, better some than none! And if you don’t want to go through all the hassles, you can purchase SLPs from crypto exchanges.
Through ups and down
When it first took its plunge into the market, an SLP token was worth around $0.03. In July 2020, it climbed up close to $0.2. However, in a few days, it slumped down, tracking an uneventful pattern for more than 9 months. In May 2021, the price skyrocketed, keeping in line with the market trend. It was short-lived too. Currently, an SLP token is worth $0.086300.
Breeding fees and the recent economic adjustments
Earlier, the cost of breeding Axies started from 100 SLPs. For the next breeds, the cost would rise to 200, 300, 500, 800, 1300, and 2100 SLPs respectively. (To keep hyperinflation in check, the maximum number of times Axies can be bred is limited to seven.)
However, it is estimated that tens of millions of Axies will onboard the platform as the project grows, especially with the launch of Ronin Dex and Battles V2. There should be enough SLPs to meet the growing demand. Or else, the price of SLP tokens will surge high.
And how exactly is that a bad thing?
It is not. But as the growth saturates, the price will crash down, disrupting the Axie economy.
To avoid this situation and reinforce sustainability on the platform, the team has increased the number of SLP tokens required to breed Axies as follows.
In the long run, an auto-balancing system will be brought into action to fix the AXS:SLP tokens required for breeding Axies, without manual intervention. The platform has also announced that SLP tokens will be tradable along with AXS tokens on Ronin DEX, increasing its utility and value.