What is Smooth Love Potion (SLP) and how can you use it?

If you’re here looking for a recipe to conjure up Cupid’s arrow you are in the wrong place. Instead, we’ll be exploring a new craze in the NFT and crypto space and deciphering what it is and if it is worth buying.

What is Smooth Love Potion (SLP)?

Smooth Love Potion (SLP) is an ERC-20 token that can be earned through completing quests, defeating bosses and winning battles in the blockchain-based game Axie Infinity. SLP is an integral element of the play-to-earn game, which cannot be purchased from the game directly, but is now being traded on a number of cryptocurrency exchanges.

Related article: How to choose a cryptocurrency exchange

What is an ERC-20 token?

An ERC-20 token is a blockchain-based asset that is used for all smart contracts on Ethereum’s network and also represents a set of standards that cryptocurrencies can adhere to. They have value and can be sent and received, however they don’t have their own blockchain, but are compatible with the Ethereum blockchain. So, while Ether is the native cryptocurrency of the Ethereum network, the ERC20 token represents a specific standard, or set of rules, that developers can follow to make Ethereum-based tokens.

What is Axie Infinity?

To get a full understanding of Smooth Love Potion you’ll likely need to know more about the game it comes from, Axie Infinity. This play-as-you-earn game is very similar to the old-school Tamagotchis or Neopets (remember them?) or even Pokemon, where you collect, battle and care for cute digital pets.

Axie Infinity runs on the Ethereum blockchain and you will need Ether to purchase your digital pets (Axies, as they are called). To play the game you will need three Axies and it is estimated that it can cost the equivalent of up to $2,000. Axies are NFTs as they are unique and irreplaceable, for example, even when someone else takes a screenshot of your Axie or tries to replicate it in any way, you remain the owner of your Axie even when you aren’t playing the game.

Why are people trading SLP?

SLP is the primary source of income for Axie Infinity gamers, as it is needed to breed the digital pets, Axies, which can then be sold through an NFT marketplace to other players. It can take a while to earn the SLP needed to breed Axies. Therefore, players have turned to cryptocurrency exchanges to sell their SLP to other gamers looking for an easy way to acquire more tokens needed to breed these digital pets.

Related article: How to buy an NFT in 5 Easy Steps

How has SLP performed?

Over the course of February 2022, SLP has seen a lot of volatility. At the start of the month SLP was trading for US$0.00942, then quickly shot up by 314% to US$0.03908. By the end of the month it had fallen by 48%. The reason for the sudden price jump is difficult to determine, but it is likely due to the looming reduction of the SLP token supply by Axie Infinity. At the moment there is an unlimited number of SLP tokens, but it is predicted that it will soon be changing and there will be a cap placed on the number of SLP tokens in supply.

How to buy Smooth Love Potion (SLP)

If you are interested in trading SLP you will need open an account with a crypto trading platform that sells SLP, some include:

• Binance
• Coinspot
• FTX
• Kucoin
• Swyftx

Also, to trade SLP you will need either Bitcoin or Ether.

Related article: How to buy cryptocurrency in Australia

Is Smooth Love Potion a good investment?

As with all investments there are risks involved, particularly with cryptocurrency which can be extremely volatile. Before investing in SLP you should have a thorough understanding of what it is and if it has any real-world functionality, and also consider your own personal circumstances, goals and tolerance for risk.

Cover image by: Sanjay kj/Shutterstock.com