Smooth Love Potion (SLP) tokens are the utility tokens of the Axie Infinity metaverse game. It’s also the main source of income for thousands of metaverse gamers who dedicate their efforts and creativity to breed Axies.
Nowadays, experienced and passionate gamers make a fortune by playing play-to-earn games. They mint characters, powers, skins, and weapons as NFTs. Then, they engage in virtual battles within the gaming metaverse to earn rewards in crypto coins, NFTs, or NFT coins. Players can trade such digital assets in marketplaces like OpenSea for USD.
Axie Infinity is one of the most popular NFT games, where you need to mint and train Axies to win battles. The game has a native crypto coin that players earn or pay out during in-game activities. The in-game name of this native coin is Smooth Love Potion, and the crypto marketplace name is SLP token.
SLP token has been in the spotlight since 2018, the inception of the Axie Infinity play-to-earn game. Read on as we describe all that you need to know about SLP tokens in this ultimate guide.
Table of Contents
What Is SLP or Smooth Love Potion Token?
SLP is an ERC-20 fungible gaming token on the Ethereum blockchain with no maximum amount of supply. ERC-20 token is just the opposite of ERC-721 non-fungible tokens.
While NFTs are represented by ERC-721 smart contracts on the Ethereum blockchain, you need ERC-20 tokens to denote identical assets like cryptocurrencies. And to make the process affordable, all the transactions take place on the RON network.
There are two crypto coins in the Axie Infinity metaverse, the Axie Infinity Shards (AXS) and Smooth Love Potion (SLP). SLP is the utility token, and AXS is the governance token.
SLP is equivalent to in-game virtual currency. Therefore, players need SLPs to breed pets, known as Axies. They also need SLP coins to trade Axies, a kind of NFTs, within the Axie Infinity metaverse.
The SLP Tokenomics
Earning the SLP coins at starting phase is challenging since you need to complete some challenging daily quests. Once you have sufficient SLPs, you can breed unique Axies and train them for arena battles.
You can also go on in-game adventurous single-player conquests with your Axies to earn SLPs beating the level bosses. However, experienced gamers make large amounts of SLPs by winning player versus player (PvP) arena matches or as incentives for attaining higher levels within the Axie metaverse.
The game developers can not sell SLPs to the players. The Axie Infinity game will generate SLPs when players complete a set of quests, adventures, or win battles. Thus, the supply of this coin depends on the engagement of players within the game ecosystem.
Therefore, this cryptocurrency project will always depend on the number of active players and may fail if the gamers stop joining.
The SLP coin is available on the Uniswap liquidity pool, and hence owners can trade the coins in the secondary cryptocurrency marketplaces like Binance, Crypto.com, Gemini, Coinbase, etc.
Novice players can buy a handful of SLPs from crypto exchanges and start breeding Axies in the game without going through the daily quests. Thus, the gamers have built a robust economy of Smooth Love Potion coins around the Axie Infinity metaverse game.
The History of SLP Tokens
SLP coin’s price goes up or down according to the activities in the Axie Infinity game and secondary marketplaces. When the number of active players increases in the metaverse, the price of SLP comes down as the supply increases.
On the contrary, when players buy a lot of SLPs from the secondary marketplaces, and there are fewer active players, the price would eventually go up.
SLP traders saw a maximum price of $0.3642 on May 1st, 2021 according to Coinmarketcap. A report from ActivePlayer said that, back then, the daily average of active players was slightly over 1 million. On the contrary, almost 3 million players play the Axie Infinity now. Hence, the supply of SLP increased drastically, resulting in its fall in price.
The current market cap of the SLP coin is $87 million, with a circulating supply of 5.38 billion SLPs. The numbers clearly show that active participation increased the supply of SLP coins since more players mint the token in the metaverse.
The SLP token also has to withstand selling pressure on the secondary marketplaces since many individuals sell SLPs to cash out their earnings in the game. An average player can earn 75 SLPs per day.
But if you’re a good gamer and put in more effort, you can make up to 200 SLPs daily. Hence, many individuals in the countries like Indonesia, Malaysia, the USA, Venezuela, Thailand, and the Philippines recognize the Axie Infinity play-to-earn game as an earning source.
Earning Smooth Love Potion (SLP) Tokens
Players can enter the game and level up by investing time, effort, and gaming skills to earn a lot of SLPs. If you’re starting as a novice, you can either invest $500 to $1000 to buy SLPs from secondary crypto exchanges and start breeding Axies straight away.
Or, you can spend some time in this blockchain game as a novice and earn SLPs for free. Here are some of the ways to earn SLPs in Axie Infinity:
1. Complete Daily Quests
Players earned up to 75 SLPs by simply completing daily milestones like game check-in, defeating players in the arena matches, and beating monsters in the arena.
However, since the supply of SLPs had increased, the game developer reduced daily quest earnings to 25 SLPs/day as of 2021.
There’s a possibility that the game will remove all the daily quest rewards in the upcoming Season 20 version of Axie Infinity to combat the price dip in secondary marketplaces.
2. Battle the Competitors in the Arena
Defeating rival Axies in the arena or player versus player (PvP) matches is the main source of SLP earning. The arena matches players for a battleground event based on their match-making ranking or MMR for short.
MMR is a vital metric that governs the SLP earning potential for a PvP battle winner. First off, you need at least 800 MMR to win SLP rewards by participating in arena matches. Secondly, MMR works as a reward multiplier.
If you have a higher MMR point, you’ll earn a higher SLP as compared to another winner who participates in a similar match with a low MMR. Another important resource you need to earn SLP in PvP events is energy.
Every 6 hours, you get 20 energy (for 3 Axies and more if you own >3 Axies) from the game app. On the contrary, each PvP match requires one energy if you wish to earn SLP, considering you win the battle. Thus, you can participate in up to 20 SLP-earning arena competitions.
If you run out of energy, you can still take part in arena matches. However, you won’t earn any SLPs even if you win the battle. As a consolation, you get MMR rewards. Thus, you can always participate in PvP matches to increase MMR which in turn increases SLP earning potential.
3. Defeat Monsters in Adventures
Where arena mode is a multiplayer version of Axie Infinity, adventure mode is the single-player iteration. You need to complete one level after another, and there are up to 36 levels you can conquer.
You can revisit each level multiple times to fulfill your daily quests. Also, you don’t need to invest energy points to play the game in single-player mode.
Throughout the adventure mode gameplay, you can earn up to 40 SLPs each day. You get one-time bonus SLP rewards when you defeat bosses. All SLP earnings in the adventure mode are one-time, no matter how many times you play each level.
Moving SLPs to Ronin Wallet
SLP token exists on the Ronin sidechain of the Ethereum blockchain. Sky Mavis, the developer of the sidechain, has built it to facilitate the cheap transfer of SLPs across Ronin wallets. Otherwise, the players would have to pay a lot in gas fees if the SLPs were directly minted on the Ethereum blockchain.
When you decide to cash out your in-game earnings, you can claim SLPs from the game and transfer them to the Ronin wallet. You can do this after 14 days of earning a bunch of SLPs.
Once you connect the Axie Infinity gaming ecosystem with the Ronin wallet, you’ll get the option Claim Tokens. There, you’ll see the available amounts of SLPs eligible for withdrawals.
Smooth Love Potion (SLP) Tokens: The Final Words
SLP is one of the most successful play-to-earn game currencies with fiat money liquidity. Crypto exchange records clearly show that gamers, traders, and investors have created a cycle of the economy around the SLP token with a sustainable structure.
When new players join the club, more SLPs are generated and burned to mint Axies. Axies fight in a virtual arena to add more SLPs in circulation. Gamers primarily gain SLP coins and sometimes can also win AXS, the governance token.
Players can utilize their SLPs in the Axie Infinity metaverse to buy lands or simply sell tokens in crypto exchanges for USD currency.