What is Smooth Love Potion (SLP)?: The key ingredients

Axie Infinity’s in-game token is an integral element of the play-to-earn game’s concoction

Bottle of red liquid with a “love potion” tag                                 
Love them or hate them, NFT games have cast a spell on millions of users – Photo: Shutterstock
                                

Contents

The Vietnamese NFT-based play-to-earn game Axie Infinity, arguably a household name in some countries, boasts millions of active daily users, billions in total NFT trading volume and partnerships with Ubisoft, Samsung, Binance and other big hitters.

Axie Infinity’s cartoonish and cutesy characters
Axie Infinity draws inspiration from Pokémon and Digimon – Photo: axieinfinity.com

Although the AXS token is synonymous with the platform, what might be less understood is the native Smooth Love Potion cryptocurrency, which is an essential aspect of the Axie Infinity ecosystem.

What is Smooth Love Potion (SLP) and how does Smooth Love Potion work? Join us as we answer these questions and more in our ultimate guide.

The utility of Smooth Love Potion

The main question is, what is Smooth Love Potion coin used for?

Sounding like a track from a Barry White album, Smooth Love Potion (SLP) serves as an in-game currency for users to breed “Axies”, the cute animal offspring that populate the Axie Infinity world. As a play-to-earn platform, Axie Infinity rewards users with SLP coin after they complete quests, defeat bosses and compete in peer-to-peer battles.

It is not just petty change, either: Forbes recently stated that SLP “has changed lives and lifted people out of poverty.”

Although SLP coins cannot be purchased from the game directly (they must be earned by performing in-game tasks), they are actively traded on numerous exchanges. Unusually for an in-game cryptocurrency, SLP has liquidity on Binance under the Innovation Zone trading segment.

Since the value of NFTs is closely linked to rarity, SLP and the associated Axies bred using SLP coin have essentially deflationary tokenomics baked in. One Axie can generate a maximum of six offspring, with the cost of hatching new offspring rising exponentially.

Chart of the SLP cost for breeding Axies
The higher cost for successive breeds promotes deflation – Photo: Axie Infinity

As an ERC-20 token, SLP is secured through Ethereum’s proof-of-work consensus mechanism.

Tokenomics: Why such high trading volumes?

At the time of writing, the Smooth Love Potion cryptocurrency has a total supply of more than 5.38 billion and a trading value price of $0.005. Market capitalisation is $28.7m. As it is an in-game token that is minted as a result of users’ actions, there is no maximum supply. 

Trading volume is high: a recent 24-hour high of $66.92m was 232% greater than market cap. This could be down to a high volume of secondary sales on the NFT marketplace, coupled with excessively high SLP minting activity. High trading volumes in NFT games can be taken as a sign of strong user activity.

As reported in Currency.com, it was announced on 7 February that Axie Infinity’s reward structure was getting a revamp, effectively slashing the roll-out of SLP by a large margin. Daily quest rewards have also been cut, further limiting supply.

The Smooth Love Potion cryptocurrency is primarily traded on Binance, with strong liquidity ratings for the USDT, ETH, BUSD and TRY pairs. Gate.io also offers SLP/USDT, which CoinMarketCap states has a liquidity rating of 434/1000. Liquidity is also provided on the OKEx, KuCoin and Gemini exchanges, which are also the top three wallets holding SLP.

According to Etherscan, there are 52,150 unique addresses holding SLP while the top 100 holders collectively own 90.98% of supply.

If you are looking to learn more about the recent price action and forecasts for Smooth Love Potion (SLP), be sure to head over to our price prediction feature.

Axie Infinity

Axie Infinity intends to make the transition into a decentralised autonomous organisation (DAO). According to the official roadmap, full DAO implementation will be achieved by September 2023, although certain functions concerning token supply will remain hardwired into the smart contracts.

Axie Infinity, first conceptualised in December 2017, was created by the game studio Sky Mavis under CEO Trung Nguyen, who was named the most influential person in crypto in 2021 by CoinDesk. Nguyen was influenced by Pokémon, a fact made evident in Axie Infinity’s art style and battle gameplay mechanics.

The blockchain-based, play-to-earn game rose in popularity throughout 2020 and 2021, and currency ranks in the top three play-to-earn games, behind only Decentraland and The Sandbox.

Although Axie Infinity is based on Ethereum, in February 2021 Sky Mavis launched the Ronin sidechain, a layer-2 solution allowing for cheaper and faster in-game transactions.

FAQs

Smooth Love Potion (SLP) was launched by Sky Mavis, the owner of Axie Infinity.

Key Sky Mavis team members include chief executive Trung Nguyen, chief operating office Aleksander L, chief technical officer Viet Anh Ho, and art director Tu Doan.

SLP is secured by Ethereum’s proof-of-work consensus method. While SLP’s smart contracts have not been audited, Axie Infinity underwent a full audit by Quantstamp in October 2020, with no high- or medium-risk issues discovered.

Smooth Love Potion (SLP) is an in-game cryptocurrency which is also traded on the Binance centralised exchange. Trading volumes are among the highest of all play-to-earn cryptocurrencies.

Further reading

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