SpaceSwap is a DeFi platform that leverages Uniswap’s protocol to farm Milk tokens. Users can deposit assets into various pools to earn MILK2 tokens as rewards. Additionally, token holders can make Milk Shake (SHAKE), an ultra scare asset which opens up more rewards.
What is SpaceSwap?
Originally starting as a SushiSwap DeFi clone, with plans to deploy and migrate to their automated market maker (AMM). The mysterious space-themed developers quickly realized their original model for MILK was susceptible to over emission and inflation problems. As a result, SpaceSwap v2 came to life with a two token economy and a greatly reduced coin emission.
Additionally, the team chose to remove all the migration code and focus on providing a sustainable farming operation. Users can choose to farm MILK2, the governance token, in the Gravity pools which focus on helping DeFi stablecoins remain on peg. Or the Interstellar pools which are Uniswap pairs voted in by token holders.
Why make SHAKE tokens?
Firstly, the token has a fixed total supply of 10,000 meaning its value could easily be driven up by being ultra scarce. Also, 1% of all minted MILK2 tokens are shared proportionally among SHAKE holders. Furthermore, the MILK2-SHAKE farming pool offers one of the highest APY for users.
However, the true purpose of SHAKE is to help decelerate inflation. Because when a user swaps MILK2 for SHAKE then the Milk tokens are burnt. In the case of the reverse exchange, the price is lowered by 10 MILK2 to stop instant arbitrage from happening.
Upcoming: Shadow farming
With the launch of SpaceSwap 2.0 came security audits from Lianantech, a team part of Beosin. Positively, no security risks were found in the smart contract code. However, the most interesting announcement is an upcoming feature called Shadow Farming.
The team states this approach will revolutionize DeFi farming in the industry, as users will no longer have to stake LP tokens. A process that could be compared to cold staking. Essentially, this will allow for safe harvesting of rewards in an almost gasless experience. With all the rug pulls from malicious clone protocols, along with high transaction costs on Ethereum – this new feature would be game-changing.