Merger between SpiritSwap and Morpheus Swap

Description: A merger between SpiritSwap and Morpheus Swap will likely produce the following benefits: greater incentives for all liquidity providers, increase TVL, increase protocol generated revenue, increase $inSPIRIT payouts, provide constant buy pressure for $SPIRIT, increase amount of $SPIRIT locked for $inSPIRIT, and reduce user-experienced swap fees.

Morpheus Swap is a community-centered AMM on Fantom, designed to provide high revenue share with low cost swap-fees (0.15%). Morpheus Swap was launched in September, 2021 for liquidity mining and introduced it's DEX in October, 2021. $PILLS is the primary token of Morpheus Swap and users are able to earn protocol revenue in other tokens (e.g. $FTM, $MIM, etc.) by staking $PILLS into Neo Pools.

The details of this merger are as follows: Under a Spirit Swap master router, Morpheus Swap would host and provide incentives for multi-chain token liquidity farms (e.g. $BTC, $ETH, $SPELL, $wMEMO, etc.). Morpheus Swap fees would remain at 0.15%, decreasing cost to users by 50% compared to Spirit's current fees of 0.3%. In return for this liquidity, Morpheus Swap would provide 33% of protocol revenue to $inSPIRIT holders.

This provides enormous benefit as users pay less in swap fees and $inSPIRIT holders earn more in payouts each week. Volume will likely increase as swap fees are reduced by 50%, further increasing revenue to $inSPIRIT holders.

As the AMM race heats up on Fantom, aggregator volume will become incredibly important. Morpheus Swap's fee of 0.15% will capture significantly more aggregator volume in competition with Spirit's primary competitor, Spooky, whose fee is 0.2%. Between Spirit and Spooky on aggregators, Spooky populates first on the majority of multi-chain token trade routes. With this merger, Morpheus Swap is able to capture this volume, benefiting Spirit via 33% revenue share to $inSPIRIT holders.

In addition to this, Morpheus Swap's Treasury would use 10% of protocol revenue to buy $SPIRIT on spot, locking it for four-years into $inSPIRIT, then used to vote for $FTM-$PILLS boosted liquidity farm, which is already on Spirit Swap.

Furthermore, by allowing Morpheus Swap to incentivize multi-chain liquidity token farms, this increases the efficiency of $SPIRIT incentives, allowing Spirit Swap to redirect $SPIRIT currently used for multi-chain token liquidity to Fantom-native token liquidity farms. This is a massive benefit to Fantom-native projects, as a significantly larger amount of $SPIRIT would be subject to distribution via gauge voting.

Above all, Morpheus has the ability to direct incentives where they are needed, whereas $SPIRIT incentives are directed by $inSPIRIT holders. Based on current data $inSPIRIT holders typically vote for Fantom-native pairs (LQDR-FTM, FRAX-FTM, MAI-FTM, etc.), which leaves crucial pairs without adequate incentives (USDC-FTM, BTC-FTM, ETH-FTM, wMEMO-FTM, SPELL-FTM, etc.). It is imperative to provide adequate incentives for these pairs, as without it, liquidity will likely move to competitors offering greater incentives. Morpheus Swap will be able to fill in these gaps by directing liquidity incentives to important pairs that don’t receive votes through the $inSPIRIT system, providing a much smoother trading experience and retaining users in the SpiritSwap ecosystem.

The remaining percentages of protocol revenue for Morpheus Swap would be distributed as follows:

52% to Neo Pools (Revenue share to $PILLS holders) 5% to buying $FTM for $FTM-$PILLS LP (on Spirit Swap)

Risks: No observable risks. Any unforeseen risks can be openly discussed in the forum.

Morpheus Swap Links: Coingecko: https://www.coingecko.com/en/coins/morpheus-swap Docs: https://morpheusswap.gitbook.io/morpheus-swap/ App: https://morpheusswap.app/

Visualization of revenue share distribution in this proposal: https://imgur.com/a/evywlRB