Smooth Love Potion (SLP) is an ERC-20 token that is the in-game asset of the popular blockchain-based gaming metaverse Axie Infinity. In this game, players collect unique digital pets called Axies — represented by non-fungible tokens (NFTs) — which they can breed, sell, or deploy in battle against other players. The Axie Infinity game has a multi-token economy, and uses another ERC-20 token called Axie Infinity Shards (AXS) as a governance token for its ecosystem.
SLP crypto tokens are used in-game to facilitate the breeding of Axies. It can not only be earned in the Axie Infinity metaverse, but can also be traded on supported cryptocurrency exchanges — a noteworthy caveat that brings wider market access to this in-game currency. The external market for SLP emerged when a liquidity pool for ETH-SLP was created on the decentralized exchange (DEX) Uniswap, bringing SLP out of the Axie game metaverse and into the crypto market. As Axie Infinity has grown into one of the most popular blockchain-based games, SLP has demonstrated the value of in-game assets both within the metaverse and beyond.
The SLP token does not have a hard cap to its total supply, and its circulating supply is in constant flux. This is because SLP tokens are continuously being generated from in-game activities, and are burned each time new Axies are spawned from the breeding process. In this way, the SLP crypto supply is contingent on activity in the Axie Infinity game. Because of this, it is anticipated that as the user base of Axie Infinity expands, there could be a significant increase in the amount of SLP being created thanks to increased player participation, in-game competitions, and other SLP-generating activities.
The SLP token has value in the Axie Infinity metaverse via play-to-earn economics as well as value in the wider crypto market. The fact that SLP is being traded on decentralized SLP token exchanges distinguishes it from most other in-game currencies. This represents a landmark not just for Axie Infinity and the Axie marketplace, but also for metaverses and NFT markets as a whole.