What is Skull Order

Article Summary, Automatically Generated By AI

About Skull Order

1. Skull Order Ecosystem:
   • Comprised of 2 DEXs (SkullSwap and Cranium Exchange) and a stable coin de-peg insurance protocol (Depeg Finance)
   • Shares a single token ($SKULL) across all projects, allowing for interactions and value capture

SkullSwap DEX

• Automated Market Maker (AMM) DEX with concentrated liquidity pools
• Users can earn rewards in 3 ways:
  1. Provide liquidity to incentivized pools to receive $dSKULL
  2. Single stake $SKULL

About Skull Order: Unveiling the Mysterious Realm of Decentralized Finance

1. Skull Order: A strategic trading approach that involves buying and selling cryptocurrency assets in a specific sequence to maximize profits.

The Skull Order Ecosystem was conceptualized as a haven for DeFi traders, providing a comprehensive platform that fosters a seamless trading experience. This ecosystem is comprised of two decentralized exchanges (DEXs) with distinct purposes, as well as a stable coin de-peg insurance protocol. Notably, a single token is shared across all projects, interconnecting them and facilitating interactions centered around this token. Consequently, the value generated by the ecosystem is expected to be channeled to $SKULL holders, thereby creating a synergistic relationship.

1.1. SkullSwap DEX: A Revolutionary Automated Market Maker Decentralized Exchange (AMM DEX) featuring concentrated liquidity pools, designed to facilitate seamless swaps. Built upon the robust framework of Quickswap, SkullSwap will integrate concentrated liquidity pools, leveraging a licensed technology from Algebra.

Beyond facilitating straightforward token swaps, SkullSwap users can reap rewards through three distinct avenues:

1. To receive $dSKULL, provide liquidity to any of the incentivized pools.

2. Stake your $SKULL in the “Bag o’ Bones” to earn a share of the fees generated from every trade executed on the platform, which will be distributed in the form of $dSKULL. As the liquid staked version of $SKULL, $dSKULL is designed to appreciate in value over time, with its underlying $SKULL amount increasing continuously.

3. You can stake $dSKULL (“Diamond SKULL”) and other select tokens on the Tower of Skulls to receive tokens from various protocols that have partnered with our ecosystem. The distribution of token rewards, including the timeframe and amount, is determined by our partners.

Supply liquidity to any of the incentivized pools and earn $dSKULL in return.

By staking a single unit of $SKULL on the “Bag o’ Bones”, you can earn a proportion of the fees generated from every trade executed on the platform, which will be distributed in the form of $dSKULL. Notably, $dSKULL is the liquid staked equivalent of $SKULL, ingeniously designed to appreciate in value over time by incrementally increasing the underlying $SKULL it represents.

$dSKULL (“Diamond SKULL”), along with other select tokens, can be individually staked on Tower of Skulls, thereby unlocking the potential to receive tokens from diverse protocols that are integrated into our ecosystem’s partnership network. The distribution of token rewards, including the timeframe and amount, is determined by our partners.

1.2. Cranium Exchange: A Decentralized Perpetuals and Spot Exchange

Cranium Exchange is a decentralized protocol that facilitates the trading of perpetual futures contracts for digital assets with leverage of up to 30x. In addition to trading, users can stake $SKULL on Cranium to earn a portion of the fees collected in the form of $FTM. Furthermore, users can optimize their digital assets by providing liquidity to $SLP, an index of assets utilized for swaps and leverage trading on Cranium, which is automatically staked on mint. Liquidity providers will receive a majority of the fees collected (70%) in the form of $FTM, as well as some $esSKULL (escrowed version of the Skull token) emissions. It is essential to note that $esSKULL is not intended for transfer between users and can be vested linearly over a one-year period to become standard $SKULL tokens. Holders of $esSKULL can also stake their tokens to earn additional $esSKULL, as well as a portion of the fees collected.

1.3. Depeg Finance: A Novel Stablecoin De-peg Insurance Protocol

Depeg Finance is an innovative insurance protocol designed to mitigate the risks associated with stablecoin de-pegging events. This platform enables users to purchase or sell insurance against a specific stablecoin de-peg event, which is triggered when the stablecoin’s value falls below a predetermined strike price. Functioning similarly to a traditional insurance policy, the buyer is required to pay a premium to the underwriter, who assumes the risk. In the event of a de-peg, the insurance buyers are entitled to receive compensation from the underwriter’s vault, covering the losses incurred during the specified period. Furthermore, holders of $SKULL can stake their tokens on Depeg to earn a proportion of the fees generated by the protocol.

1.4. The Ecosystem’s Cryptographic Tokens

1. The $SKULL token serves as a pivotal component of the ecosystem, boasting versatility across various protocols. By staking $SKULL on the diverse protocols that comprise the Skull Order Ecosystem, users can earn a proportionate share of the revenue generated by each specific protocol.
2. $dSKULL, also referred to as Diamond Skull, represents the liquid staked version of $SKULL on Bag o’ Bones, a single-stake vault within SkullSwap. A portion of the revenue generated is allocated to reward $SKULL stakers. Rewards on SkullSwap are distributed in $dSKULL, with corresponding $SKULL deposits made to the vault from launch, initiating at a 1:1 ratio. As a deflationary token, $dSKULL commences at a value of 1 $SKULL and is expected to appreciate perpetually as fees from SkullSwap trades are directed to Bag O’ Bones, thereby increasing the ratio of $SKULL in the vault to $dSKULL in circulation.
3. $esSKULL, the escrowed iteration of the $SKULL token, is distributed as rewards by Cranium Exchange. These escrowed tokens can be staked similarly to $SKULL tokens, earning the same rewards rate. However, they must undergo a linear vesting period of one year to mature into standard, transferable $SKULL tokens. As $esSKULL is not intended for trading, it can only be transferred upon changing the account to which it belongs on Cranium.

1.5. Introducing the Exclusive Skull Order NFT (SON) Sale

The Skull Order NFT (SON) collection is a limited edition series of 5,000 unique digital assets, each boasting distinct characteristics. This exclusive collection offers a total bonus of 987,400 $esSKULL tokens, serving as a reward for early adopters. The initial price of the NFTs is set at 500 FTM, with each NFT possessing an initial power of 10,000 and a bonus of 250 $esSkull. The SON collection is divided into 50 tiers, each comprising 100 NFTs. The price of minting an NFT will incrementally increase, while the power and $esSKULL reward will decrease by 1% with every 100 NFTs minted. The funds generated from the sale of the Skull Order NFTs will be strategically allocated towards various key initiatives, ensuring a successful launch and sustainable development of the Skull Order Ecosystem. 15% of the funds are designated for providing initial liquidity for the $SKULL token. A substantial 60% of the funds will be added as liquidity for the SLP pool, which will generate a significant portion of NFT stakers’ yield.

Furthermore, 3% of the funds are allocated towards marketing efforts, aimed at increasing awareness and adoption of the ecosystem. An additional 7% of the funds are allocated towards the treasury, ensuring long-term stability, funding daily operations, and ecosystem development. The remaining 15% of the funds are allocated to support other initiatives, including the operation of a Fantom validator node, which requires staking a significant amount of FTM tokens. The timeline for acquiring a node, however, will be dependent on the performance of the sale and the value accrued to the treasury.

1. Economic Token Structure

The $SKULL token boasts a total supply of 7,000,000 tokens, serving as the cornerstone of the entire Skull Order Ecosystem. While it can be staked on all protocols, it can only be earned on Cranium Exchange and SkullSwap. The allocation of $SKULL tokens is as follows: 46% is allocated to the SkullSwap protocol, and 56% is allocated to the Cranium Exchange protocol. In terms of SkullSwap’s $SKULL allocation, 30% is reserved for initial liquidity (locked), while 44% is dedicated to farming rewards, which are distributed as $dSKULL. The partnership program receives 16% of the tokens, and 3% is allocated for development funds, team, and project development. These tokens are distributed and vested over a period of 3 years, except for Project Development (2 years) and the Partnership Program (4 years). The remaining 1% is dedicated to airdrops, to be distributed at the team’s discretion. Regarding Cranium’s allocation, all tokens come in the form of $esSKULL. A total of 26% of the tokens are distributed to buyers of Skull Order NFTs as a bonus from the NFT Sale hosted on Cranium Exchange. Additionally, 20% of the tokens are allocated as rewards to $SKULL and $esSKULL stakers, while 40% go to rewards for SLP stakers. The DAO fund receives 7% of the tokens, and the development fund receives the remaining 7%. These tokens all require linear vesting over a period of 1 year.

1. Skull Order’s Pivotal Role in Shaping Fantom’s Decentralized Finance Landscape

Cranium and SkullSwap embody Skull Order’s foray into the DEX sector, a realm of DeFi that is not only crucial but also capable of consistently capturing significant value over time. The ultimate goal is to provide DeFi users with a comprehensive suite of features and tools to facilitate their activities. When a user seeks to execute a simple token swap, SkullSwap’s concentrated liquidity pools can optimally satisfy their needs. Notably, after acquiring the necessary license from Algebra, SkullSwap will be the first protocol to integrate this technology within the Fantom ecosystem, thereby distinguishing itself from leading DEXes on Fantom. This unique advantage will enable SkullSwap to operate more efficiently, resulting in better pricing for traders and higher returns for liquidity providers. Furthermore, for those seeking to employ more sophisticated trading strategies, Cranium Exchange is the go-to protocol, as it supports leverage trading without price impact. Depeg, meanwhile, represents Skull Order’s venture into the exotic options market, with a planned launch slated for after February 20th, coinciding with the rollout of SkullSwap and Cranium.

We envision Skull Order as a pioneering endeavour in DeFi development, introducing a novel approach that converges multiple projects under a single token. By offering yield-earning opportunities across all projects, we anticipate the $SKULL token to harness greater value, thereby enhancing its stability and fostering a more sustainable ecosystem. Furthermore, we plan to deploy additional projects that will comprise Skull Order, including a potential lending protocol, although details are yet to be confirmed.