SLP tokens facilitate the breeding of Axie NFTs in the popular gaming metaverse Axie Infinity.
Smooth Love Potion (SLP) is the in-game digital currency of the Axie Infinity gaming metaverse. It enables the game’s players to breed collectible digital pets — known as Axies. The overall demand for SLP tokens has grown such that they are also traded on cryptocurrency exchanges. Here, we explore the role of SLP in the Axie Infinity game, and what it means for the wider crypto ecosystem.
Introduction to Smooth Love Potion (SLP)
Smooth Love Potion (SLP) is an ERC-20 token that is the in-game asset of the popular blockchain-based gaming metaverse Axie Infinity. In this game, players collect unique digital pets called Axies — represented by non-fungible tokens (NFTs) — which they can breed, sell, or deploy in battle against other players. The Axie Infinity game has a multi-token economy, and uses another ERC-20 token called Axie Infinity Shards (AXS) as a governance token for its ecosystem.
SLP crypto tokens are used in-game to facilitate the breeding of Axies. It can not only be earned in the Axie Infinity metaverse, but can also be traded on supported cryptocurrency exchanges — a noteworthy caveat that brings wider market access to this in-game currency. The external market for SLP emerged when a liquidity pool for ETH-SLP was created on the decentralized exchange (DEX) Uniswap, bringing SLP out of the Axie game metaverse and into the crypto market. As Axie Infinity has grown into one of the most popular blockchain-based games, SLP has demonstrated the value of in-game assets both within the metaverse and beyond.
Availability of Smooth Love Potion Tokens
Axie Infinity is not responsible for selling SLP tokens to players, nor does it provide liquidity for SLP token exchanges. Instead, Smooth Love Potion tokens are generated in the Axie Infinity game itself. In order to accrue SLP in the game, players must win battles against computer-controlled monsters in “adventure mode,” or enter competitions against other players in “arena mode.” Winning in either of these scenarios will earn players rewards in the form of experience points as well as SLP tokens.
Although the Axie Infinity platform offers several ways to earn SLP tokens, it can be difficult for players to accumulate enough SLP to successfully breed their Axies. In response, a secondary market on Uniswap for SLP token exchanges arose from a desire to quickly accumulate the token without needing to expend as much time or effort to earn it via traditional in-game methods. So while players earn SLP by playing Axie Infinity, they might also purchase additional SLP from other players on SLP token exchanges to accelerate their in-game progress.
How to Create NFTs in Axie Infinity: SLP Prices for Breeding
In an effort to avoid inflating the Axie Infinity metaverse with too many Axies, the ecosystem has implemented hard rules regarding how many times individual Axies may breed. Each Axie NFT can be bred up to seven times, with the required SLP price increasing with each subsequent breeding. In addition to SLP costs, players are also charged one AXS token per Axie Infinity breeding.
The first breeding costs players 600 SLP, and gradually increases upward until the seventh breeding, which costs over 10,000 SLP. With the SLP token charge for Axie Infinity breeding gradually increasing, the more progress a player makes in the game, the more SLP they will likely need to expend. The limit of seven total possible breedings also serves to help limit the revenue-generating capabilities of each individual Axie NFT. Because the Axie marketplace has become so popular and competitive, Axie NFT traders have even started using Axie Infinity breeding guides.
Tokenomics and Smooth Love Potion Prices
The SLP token does not have a hard cap to its total supply, and its circulating supply is in constant flux. This is because SLP tokens are continuously being generated from in-game activities, and are burned each time new Axies are spawned from the breeding process. In this way, the SLP crypto supply is contingent on activity in the Axie Infinity game. Because of this, it is anticipated that as the user base of Axie Infinity expands, there could be a significant increase in the amount of SLP being created thanks to increased player participation, in-game competitions, and other SLP-generating activities.
The SLP token has value in the Axie Infinity metaverse via play-to-earn economics as well as value in the wider crypto market. The fact that SLP is being traded on decentralized SLP token exchanges distinguishes it from most other in-game currencies. This represents a landmark not just for Axie Infinity and the Axie marketplace, but also for metaverses and NFT markets as a whole.