Smooth Love Potion is an in-game currency earned by players in the blockchain game Axie Infinity. Players can raise their pets, battle, and build their land-based assets in this non-fungible token (NFT)-based and Pokémon-inspired gaming universe.
Axie Infinity utilizes the Ronin Network, a sidechain explicitly created for the game and linked with the Ethereum blockchain. The network increases blockchain efficiency, facilitating fast and seamless in-game transactions. The sidechain also drastically reduces gas fees, unlike Ethereum, enabling players to breed Axies and participate in battles without transaction fees.
SLP is the name and ticker symbol of the protocol's native ERC-20 token. It is only one of the gaming tokens used in the Axie universe, and it facilitates the breeding of digital pets called Axies. Breeding in Axie Infinity can only be done a maximum of seven times. Therefore, the amount of SLP required increases each time an Axie is bred and is removed from the total supply, thus creating a demand for SLP.
SLP tokens are required to breed Axies. The cost of breeding starts at 100 SLP and can go up to 2,100 SLP. SLP used to breed or update axies will be burnt, lowering the token's circulating supply and preventing hyperinflation. You can use SLP earned in the game to buy more Axies or sell it through crypto exchanges.
Smooth Love Potion provides monetary value to every active player in the network. Players can earn SLP tokens by playing the game in PvE Adventure mode, participating in events, and battling in the PvP arena. The game rewards tokens for reaching specific levels to incentivize players to participate.
Play-to-earn gaming concepts are not new. However, SLP's unique value proposition of being a gaming token with monetary value may be one of the reasons behind the boost in SLP's price and its popularity. While players can earn SLP inside Axie Infinity by winning games, they can progress more by purchasing SLP in large amounts on any exchange platform. It should be noted that SLP is not a governance token; that responsibility goes to the in-game token AXS.
Like all ERC-20 tokens, SLP can be staked. Like an interest-bearing savings account, you can lock your SLP assets to earn percentage-rate rewards. Transaction fees and inflation accumulation fuel the rewards. The staked amount also serves as collateral which can be destroyed if the validator acts dishonestly.
SLP price and tokenomics
Smooth Love Potion tokens currently have a circulating supply of 1.51 billion. The SLP token has no supply limit, so it is an uncapped gaming token with a unique burning mechanism. SLP tokens are continuously generated through in-game activities and destroyed as players breed Axies.
The token supply is hence entirely contingent on player activity. The more Axie Infinity's user base expands, the more SLP tokens are created. SLP distribution is centralized, and there was no presale or initial token allocation.
The SLP price has skyrocketed quickly, given Axie Infinity's rapid expansion and the parabolic run of AXS. In July 2021, Axie Infinity averaged nearly $30 million in daily sales, with the number of buyers exceeding the number of sellers. As a result, the SLP price chart broke out with a triple-digit gain, increasing the demand in the Axie ecosystem.
Axie Infinity was launched with the help of $700K raised in crowdfunding in 2019. In November 2019, Axie Infinity completed its seed funding round with $1.5 million from investors, including Animoca Brands, Hashed, Pangea Blockchain Fund, ConsenSys, and 500 Startups Vietnam. In May 2021, Axie Infinity concluded its Series A funding round with $7.5 million raised. Leading investors for the round include Collaborative Fund, Libertus Capital, and 500 Startups Vietnam.
About the founders
Trung Nguyen is the CEO and co-founder of Axie Infinity. As a software engineer, he was interested in building a blockchain-based game after playing CryptoKitties in 2017. The economy, true ownership, and the advanced genetic system fascinated Nguyen and led to the creation of Axie Infinity.
With support from Sky Mavis, a Vietnamese Studio, Axie Infinity has surpassed many established NFT segments. Sky Mavis raised $1.5 million from blockchain investors, including Hashed and Pangea Blockchain Fund. Recently, it also had backing from Mark Cuban. It also raised $7.5 million from investors Blocktower Capital, Konvoy Ventures, Stephen McKean, and Derek Schloss.
