Sky Mavis has launched its own decentralized exchange, Katana, on their Ronin sidechain. Users can deposit USDC, WETH, SLP and AXS on the sidechain, and then swap tokens or provide liquidity without worrying about high gas fees. Those who deposit the named assets in the platform’s liquidity pools, will earn both a share of the trading fees and RON tokens.
Thanks to Katana users in the Axie Infinity community, more than 2 million people, will gain access to easy swapping methods. Playing Axie Infinity they can earn Smooth Love Potions, or SLP tokens. These tokens can then be swapped against WETH or other currencies.
Katana is a DEX, or decentralized exchange. That means that everybody can provide liquidity and earn rewards for that. To provide liquidity you will need to deposit two tokens. For example, for the WETH-AXS pool you will need to provide AXS and WETH in equal amounts. Depending on your share of the people, you will earn a share of the swapping fees and the RON tokens.
Sky Mavis has 100.000.000 RON as a reward for liquidity providers. This is 10% of the total supply of 1 billion RON. The reward system will activate later this week, the reward pool gets spread out over a 90-day period. Transactions are free for now, but in the future you will need to pay a little bit of RON for every transaction. In addition RON servers as a governance token for the Ronin ecosystem, which will likely become a blockchain for more than just Axie Infinity alone.
What is Axie Infinity?
Let’s quickly talk a bit about Axie Infinity. The tactical battle game uses its own, native Ronin sidechain. In the game players need to use 3 Axie NFTs to battle opponents and earn Smooth Love Potions (SLP). Players need to use SLP to breed new Axies. In addition parent Axies can only breed children a limited amount of times. SLP has a demand, while the floor price for an Axie NFT is right now more than $200. In short, you need three $200 Axies to play and earn SLP tokens.
Earning SLP tokens has become a source of income for people in developing countries. Among those countries the Philippines is leading the pack. The organization and economics behind this, is also becoming more professional. Third party organizations like Yield Guild Games are building tools and communities to really turn people into gamers earning income by playing Axie Infinity.
Axie Infinity moved to the Ronin sidechain earlier this year, and launched staking of their AXS governance token earlier this month. The game uses play-to-earn mechanics to reward players with Smooth Love Potions, empowering communities around the world. In their latest update, the team reiterated their focus on three main components: rewarding value creation, co-creation and co-ownership.
The community has grown to over 2.5 million players without ever releasing their game on Google Play or the iOS App Store. With Axie Infinity the developers actively want to redefine what it means to work in a world where digital ownership has actual value.