Smooth Love Potion (SLP) is an ERC-20 token used in the Axie Infinity game. It serves as both an in-game currency and a tradeable crypto asset. Players earn SLP through gameplay and use it mainly for breeding Axies, which are digital pets within the game. Key points about SLP include:
- Utility: Used for breeding Axies, with a progressive cost structure. Each Axie can be bred up to 7 times, requiring increasing amounts of SLP.
- Deflationary Mechanism: SLP is burned when used for breeding, helping reduce its supply. In 2023, the burn rate was 2.8%, over 10x higher than Ethereum’s deflation rate.
- Earning SLP: Players earn SLP by competing in Arena Mode based on their Matchmaking Rating (MMR). Higher ranks yield more rewards.
- Market Data: As of now, SLP has a market cap of $83.86 million, with over 41.17 billion tokens in circulation. It’s actively traded on platforms like Uniswap, PancakeSwap, and SushiSwap.
- Volatility: SLP’s price is highly volatile, influenced by player activity, game updates, and broader crypto market trends.
| Aspect | Details |
|---|---|
| Primary Use | Breeding Axies in Axie Infinity |
| Token Type | ERC-20 |
| Circulating Supply | ~41.17 billion |
| Deflation Rate | 2.8% (2023) |
| Earning Method | Arena Mode (performance-based rewards) |
| Trading Platforms | Uniswap, PancakeSwap, SushiSwap, etc. |
SLP’s future depends on Axie Infinity’s growth and its ability to manage the game’s economy effectively.
What is Axie Infinity (AXS) and Smooth Love Potion (SLP)?
SLP Game Mechanics
SLP in Axie Infinity works on a system that balances earning and burning tokens. Below, we break down how SLP is used, earned, and managed within the game’s ecosystem.
Breeding with SLP
Breeding in Axie Infinity requires both SLP and AXS tokens. The cost of SLP increases with each successive breed:
| Breeding Count | SLP Cost Per Parent |
|---|---|
| Breed 1 | 900 |
| Breed 2 | 1,350 |
| Breed 3 | 2,250 |
| Breed 4 | 3,600 |
| Breed 5 | 5,850 |
| Breed 6 | 9,450 |
| Breed 7 | 15,300 |
Each Axie can only be bred up to seven times, which naturally limits breeding activity.
How to Get SLP
Players primarily earn SLP through competitive gameplay in Arena Mode. Rewards are based on Matchmaking Rating (MMR):
| MMR Range | SLP Per Win |
|---|---|
| 0 – 999 | 1 |
| 1,000 – 1,099 | 3 |
| 1,100 – 1,299 | 5 |
| 1,300 – 1,499 | 6 |
| 1,500 – 1,799 | 8 |
| 1,800 – 1,999 | 10 |
| 2,000 – 2,499 | 12 |
| 2,500+ | 14 |
Recent updates removed Adventure Mode and daily quests, reducing daily SLP issuance by roughly 175 million tokens .
Token Supply and Burn Rate
Axie Infinity uses specific tokenomics to maintain balance. A stability fund helps regulate this: for every 10 SLP burned in-game, 2 SLP tokens are added to the fund .
The Premium Cursed Coliseum, a newer game mode, also supports token burning. Players pay an SLP entry fee, and 20% of these fees are permanently removed from circulation. This percentage is reviewed and adjusted monthly .
"The goal of this program is to create a steady and consistent source of demand for SLP and balance supply with demand." – Axie Infinity Team
Recent data shows that burning rates are outpacing minting by 1,045% , ensuring the economic balance remains intact.
Buying and Selling SLP
In-Game Earnings Guide
You can earn SLP by competing in Axie Infinity. Beyond gameplay, SLP is also actively traded on decentralized exchanges, offering another way to engage with its ecosystem.
Exchange Trading Guide
SLP isn’t just for in-game use – it can also be traded on decentralized platforms. Here’s how to get started:
- Choose an Exchange Platform
Many decentralized exchanges support SLP trading. Below is a quick comparison of some popular platforms:
| Exchange | 24h Trading Volume | Supported Blockchains |
|---|---|---|
| Uniswap | $593.26 million | Ethereum, Arbitrum, Optimism, Polygon, Celo, BNB Chain, Base |
| PancakeSwap | $120.42 million | BNB Smart Chain, Ethereum, Aptos, Polygon zkEVM, zkSync, Arbitrum, Linea, Base |
| SushiSwap | $100 million | Ethereum, Arbitrum, Fantom, Avalanche, Polygon |
- Set Up Your Wallet
Use a wallet like MetaMask or Trust Wallet and connect it to your chosen exchange. Make sure your wallet is funded with the network’s native token (e.g., ETH for Ethereum or BNB for Binance Smart Chain) to cover transaction fees.
Price Analysis
Once you’re set up, keeping an eye on SLP’s price trends is key. SLP has shown significant market volatility. Current data reveals a 24-hour trading volume of $9.45 million, alongside a weekly price drop of 19.18%, a monthly decline of 34.00%, and a yearly decrease of 60.32% .
Here are some recent price predictions:
| Timeframe | Price Prediction |
|---|---|
| 5-Day | $0.002077 |
| 1-Month | $0.002095 |
| 3-Month | $0.002371 |
"The Axie economy requires drastic and decisive action now or we risk total and permanent economic collapse." – Axie Developers
With a volatility rating of 4.04%, managing risk is critical. Both in-game dynamics and broader market trends continue to influence SLP’s value within the Axie ecosystem.
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SLP Market Position
Gaming Token Analysis
SLP stands out among gaming tokens and has even earned a place in Binance’s Innovation Zone . With a current price of $0.002040 and a 24-hour trading volume of about $8.2 million, it remains actively traded despite experiencing price swings .
In the Axie Infinity ecosystem, SLP is essential for breeding activities, setting it apart from tokens like MANA, GALA, and TLM, which serve other purposes on their respective platforms. Axie Infinity also benefits from a dedicated community, with around 80,000 daily active users .
Unlike many metaverse projects, Axie Infinity focuses on competitive gameplay and digital pet ownership instead of world-building, which has helped it achieve $4.31 billion in all-time NFT sales . This unique economic model strengthens the platform’s position and highlights SLP’s role in its success.
These factors lay the groundwork for expanding SLP’s utility beyond gaming, hinting at new opportunities for the token.
Future Use Cases
One proposed use for SLP is in event ticketing. In this model, event organizers could issue tokens equal to the number of tickets available. Buyers would receive these tokens as proof of purchase, which could then be redeemed for entry to the event .
Looking ahead, projections suggest SLP could reach a $3.2 billion market cap by 2025 . Several key elements support this outlook:
- Growing availability on major exchanges like Binance, KuCoin, Gate.io, and Gemini .
- Economic adjustments, such as Axie Infinity’s Season 20 update, which cut the daily token supply by 56%, helping to stabilize prices .
- Enhanced infrastructure, including ETH-SLP liquidity pools on Uniswap, which improve accessibility .
While SLP’s primary value remains tied to Axie Infinity, these emerging applications highlight its potential to become a more versatile asset in the digital economy.
Investment Factors
Market Volatility
SLP’s price history highlights its high-risk nature. It hit an all-time high of $0.4191 in May 2021 , but as of August 2024, it trades around $0.002364 , marking a sharp drop from its peak. This price instability stems from factors like changes in player activity, updates to Axie Infinity’s game mechanics, and the circulating supply affecting demand.
To navigate this volatility, traders often:
- Use stop-loss orders to minimize losses
- Keep an eye on daily active user numbers
- Stay updated on changes to the game’s economy and player sentiment
- Apply technical tools like the Relative Strength Index (RSI) to spot trends
These fluctuations highlight the importance of understanding SLP’s market behavior and potential long-term trends.
Trading Restrictions
Regulations also play a role in SLP trading. Tax authorities in various regions have increased scrutiny on play-to-earn tokens during periods of higher valuations . This has led to differences in trading rules depending on the jurisdiction.
"Many players that are new to Axie have expectations of the in-game economy that are unrealistic and would not be conducive to long-term growth." – Axie Infinity Blog
The classification of SLP – whether it’s considered a gaming token or a security – remains unclear in some markets, which could impact its regulatory treatment. Understanding these restrictions is essential for assessing SLP’s future.
Long-term Outlook
Investment decisions rely on both current market trends and future developments. SLP’s trajectory is tied closely to Axie Infinity’s growth. Planned updates like Project K, new land-based gameplay, mobile releases, and advertising-driven revenue models are designed to increase SLP’s utility and attract more players .
Sky Mavis, Axie Infinity’s developer, has outlined plans to ensure steady growth, including:
- Adding more utility to Axies
- Introducing vertical progression systems
- Enhancing game accessibility
- Creating new revenue streams through advertising and tournaments
Despite these efforts, challenges persist. Axie Infinity must continue to draw in and retain players while maintaining balanced token economics. With a market cap of about $97.7 million as of August 2024 , SLP’s future success will depend on Axie Infinity’s ability to evolve beyond the play-to-earn model and deliver lasting value for its community.
Summary
SLP is a key currency within Axie Infinity, doubling as a tradable ERC-20 token with a cap of 44 billion tokens . Its design carefully manages supply and demand to maintain balance.
The primary use of SLP is for breeding Axie NFTs . For every 10 SLP burned, 2 new SLP are minted for a stability fund, resulting in a 2.8% deflation rate in 2023 . Like many gaming-related cryptocurrencies, SLP’s market value is highly volatile. Key factors affecting its price include player activity in Axie Infinity, the efficiency of the breeding system, broader cryptocurrency market trends, and changes in regulations.
"SLP remains a key aspect of the axie economy and drives attention to the Axie universe of experiences. As such, it’s important to ensure this asset’s long term viability." – Axie Infinity
The token’s future is tightly linked to the development of Axie Infinity and its ability to sustain a balanced in-game economy. With a deflationary mechanism over 10 times stronger than ETH , SLP’s tokenomics are designed to support long-term stability and growth within the Axie Infinity ecosystem.