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SPIN Utilities

The SPIN token is a utility and governance token of Spin. Being the native token of the platform, SPIN features a wide range of utilities for all user segments.

Quick Overview

The SPIN token is a utility and governance token of Spin. It is an investment (staking), incentive (market-making, trading), yield-boosting, and governance instrument that forms the economic backbone of the Spin ecosystem of products.
  • Investors stake SPIN to receive 50% of the platform’s fees as a reward. This model also includes game theory mechanics (see below).
  • Traders receive SPIN token incentives as a reward for trading actively on Spin.
  • Market makers also receive SPIN token incentives based on the amount of liquidity provided, spreads, and their uptime.
  • Vault investors are able to get additional rewards in SPIN tokens apart from the returns extracted from investing in Vaults. For example, NEAR Covered-call Vaults' investors earn options premiums and escSPIN as an incentive part.
Additionally, all user segments enjoy extra benefits from staking SPIN because it boosts their yield from participating in various programs. Depending on the amount of SPIN staked, users receive a multiplier in Spin's incentive programs. For example, stakers can earn more SPIN tokens for trading because they can have an up to 3x multiplier, depending on their trading results and the amount of SPIN staked. The same applies to market makers and vault investors.
Also, SPIN holders can participate in Governance and propose and vote on the decisions on features, utilities, incentives, etc.
To increase the demand and reduce the selling pressure, Spin has 3 tokens forming the backbone of the project's economy:
  • SPIN is the main token that can be staked by users to get a share of the protocol revenue in USDC as a reward and escSPIN as an incentive part.
  • escSPIN is the escrowed SPIN token that is used as a reward token. If the user wants to convert escSPIN to SPIN it should be vested thus allowing for decreasing the selling pressure. Moreover, escSPIN can also be staked and will have the same rewards as SPIN.
  • Spin Points (SPs) are awarded in proportion to the staking time of SPIN and escSPIN. They increase the share of users in the distribution of Spin's income pool (boost the yield). If the user cancels staking, their SPIN or escSPIN Spin Points will be burnt proportionately.
This way, all mechanics are aimed at increasing the demand for the token, reducing the selling pressure, and are designed to ensure sustainable growth of the Spin ecosystem.