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Explained: Axie Infinity SLP Token

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DappRadar

Learn about the SLP token

Small Love Potion (SLP) tokens are earned by playing the battle or adventure mode of the Axie Infinity game. This digital asset serves as a reward for winning battles. SLP are ERC-20 tokens, and they can be used to breed new digital pets, known as Axies. 

The cost of breeding begins at 100 SLP but increases gradually — rising to 200 SLP for the second breed, 300 for the third, 500 for the fourth, 800 for the fifth, and 1,300 for the sixth. Axies can be bred a maximum of seven times, and the seventh breed costs 2,100 SLP. This limit exists in order to prevent hyperinflation in the marketplace.

It can take time to accrue SLP through the game, and a player may need to win 15 battles in order to gain enough tokens to perform their first breed. Therefore trading SLP has been an easy way for Axie breeders to acquire their much-needed SLP tokens. This in turn made Axie Infinity an excellent example of a game with a play-to-earn business model. 

In the first ten weeks of 2021, the price of SLP has increased 400% from $0.01 to $0.05 since the start of 2021.

It’s fairly unusual for in-game currency to be listed on exchanges as SLP has. In a way, it’s like Nintendo deciding to tie monetary value to the coins used in Super Mario. SLP is also unique because of how it has become one of the few in-game tokens to be listed by Binance in its Innovation Zone. The exchange has reserved this trading category for assets “that are likely to have higher volatility and pose a higher risk than other tokens.”

When SLP initially launched, it didn’t actually have a fluctuating value as a cryptocurrency. However, this all changed when a liquidity pool for SLP was created on Uniswap. As we mentioned, the Binance Innovation Zone has unveiled support for the Pokémon-inspired game. A single trading pair is offered, linking SLP with ETH.

All of this means that you may have a little difficulty purchasing SLP directly with fiat. As a result, you may first need to convert your dollars, pounds, or euros into a mainstream cryptocurrency such as Ethereum. 

The top exchanges for trading in Small Love Potion are currently Binance, Hoo, Uniswap (V2), and Bilaxy. Below are the only 4 trading pairs for SLP currently available.

Source: CoinMarketCap

Axie Infinity is a fascinating project that has captivated a strong audience and successfully built on the play to earn model.

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