With the launch of tinSPIRIT, Tarot takes its strategic partnership with SpiritSwap to the next level.
What is tinSPIRIT?
Liquid-wrapped and tokenized, tinSPIRIT is designed to reward participants for locking SPIRIT within the Tarot ecosystem:
tinSPIRIT is received in exchange for swapping or locking SPIRIT, which is used by Tarot for its boosting power across all Spirit Boosted pools.
As a liquid-wrapped version of inSPIRIT, tinSPIRIT can be swapped for SPIRIT on SpiritSwap. Locked SPIRIT has several benefits for the Tarot Protocol, including increased APRs across all Spirit Boosted pools (up to 2.5x boost) and SpiritSwap voting power for boosted farm emissions.
xtinSPIRIT — Staked tinSPIRIT
Staked tinSPIRIT (xtinSPIRIT) automatically earns and compounds SPIRIT rewards. Behind the scenes, xtinSPIRIT works similarly to xTAROT, with no performance fees and a distribution interlink that delivers yield from two powerful sources, reflected as an increasing balance of claimable tinSPIRIT over time:
Spirit Boosted Rewards
Currently, Tarot hosts 25 Spirit Boosted lending pools. Staked tinSPIRIT earns 15% of all SPIRIT rewards earned in these pools.
Each swap on SpiritSwap incurs a 0.05% protocol fee, which is used to periodically buy back and distribute SPIRIT tokens to inSPIRIT holders. Staked tinSPIRIT earns 100% of Tarot’s share of these SPIRIT rewards.
The SPIRIT-tinSPIRIT Peg
As tinSPIRIT is a liquid-wrapped version of inSPIRIT, supply and demand ultimately determines the rate at which tinSPIRIT can be swapped for SPIRIT:
- If the price of tinSPIRIT is significantly above 1 SPIRIT, arbitrageurs have an incentive to lock SPIRIT to get tinSPIRIT and increase the tinSPIRIT supply, bringing the rate closer to 1:1. This increases the inSPIRIT locked by Tarot and increases the capacity for boosted SPIRIT rewards across all Spirit Boosted pools.
- If the price of tinSPIRIT is significantly below 1 SPIRIT, the supply of tinSPIRIT is no longer increased from locking SPIRIT. During this time, rather than acquiring tinSPIRIT by locking SPIRIT at a 1:1 rate, any deposited SPIRIT is automatically swapped for a greater amount of tinSPIRIT. This applies to user deposits of SPIRIT, as well as the 15% share of SPIRIT rewards earned in Spirit Boosted pools, and Tarot’s inSPIRIT reward distribution. The ongoing conversion of SPIRIT to tinSPIRIT automatically increases the effective APR for staked tinSPIRIT and simultaneously creates a powerful source of built-in demand for the tinSPIRIT token.
Future SPIRIT-tinSPIRIT Developments
An incentivized SPIRIT-tinSPIRIT lending pool will debut on Tarot in the near future. Deep liquidity for the SPIRIT-tinSPIRIT pair may also be launched on other DEXs. Furthermore, possibilities abound for future use cases of the yield-bearing xtinSPIRIT token.