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1. Skull Order

The Skull Order Ecosystem was idealized as a home for all traders of DeFi. Comprised by 2 DEXs with different purposes and a stable coin de-peg insurance protocol, the ecosystem shares a single token across all projects that makes them interconnected and allows for interactions to be centered around that same token. This in turn is expected to allow the value captured by the ecosystem to be funneled to $SKULL holders.

1.1. SkullSwap DEX SkullSwap is a is an Automated Market Maker Decentralized Exchange (AMM DEX) with concentrated liquidity pools where simple swaps are expected to occur with. Skullswap is built on top of Quickswap’s framework and concentrated liquidity pools will be added by purchasing a license from Algebra.

Apart from performing simple swaps, users of SkullSwap can earn rewards in 3 distinct ways:

1. Provide liquidity to any of the incentivized pools in order to receive $dSKULL;

2. Single stake $SKULL on the “Bag o’ Bones” to accrue part of the fees collected from every trade executed on the platform in the form of $dSKULL. $dSKULL is the liquid staked version of $SKULL, which is designed to continuously appreciate over time by increasing the underlying amount of $SKULL it corresponds to.

3. $dSKULL (“Diamond SKULL”), as well as other tokens from a predetermined selection, can be single staked on Tower of Skulls in order to receive tokens from different protocols that integrate the list of partnerships of our ecosystem. Partners determine timeframes and amount for their token rewards distribution.

1.2. Cranium Exchange Cranium Exchange is a decentralized perpetuals and spot exchange. This protocol allows users to trade perpetual futures contracts of digital assets with as much as 30x leverage. Apart from trading, people can stake $SKULL on Cranium to earn a portion of the fees collected in the form of $FTM. Users can also put their digital assets to work by providing liquidity to $SLP, an index of assets used for swaps and leverage trading on Cranium, automatically staked on mint. Liquidity Providers will earn a majority of the fees collected (70%) in the form of $FTM and some $esSKULL (escrowed version of Skull token) emissions. $esSKULL is not meant to be transferred between users and can be vested linearly over the course of a year to become standard $SKULL tokens. Holders of $esSKULL can also stake their tokens to earn some more $esSKULL as well as a portion of the fees collected.

1.3. Depeg Finance Depeg Finance is a stablecoin de-peg insurance protocol where users can buy or sell insurance against a specific stablecoin depeg event determined by a fall below a certain strike price. Just like an insurance policy, the buyer must pay a premium to the underwriter to compensate for the risk they are incurring in this operation and, in case the de-peg event occurs, insurance buyers will receive the amount available on the underwriter’s vault to cover the losses realized during the period. $SKULL can also be staked on Depeg to earn a portion of the fees generated by the protocol.

1.4. The Ecosystem’s Tokens

1. $SKULL token is a key component of the entire ecosystem and can be used across different protocols. By staking $Skull on the different protocols that compose the Skull Order Ecosystem, you can earn a share of that specific protocol revenue.
2. $dSKULL, also known as Diamond Skull, is the liquid staked version of $SKULL on Bag o’ Bones, a single stake vault on SkullSwap where a portion of the generated revenue is sent to reward $SKULL stakers. Rewards on SkullSwap are distributed in this token with corresponding $SKULL being deposited on the vault from the launch at a starting rate of 1:1. $dSKULL is a deflationary token. It starts at a value of 1 $SKULL and is expected to increase permanently as more fees from SkullSwap trades are sent to Bag O' Bones, increasing the ratio of $SKULL in the vault to $dSKULL in circulation.
3. $esSKULL, the escrowed version of the $SKULL token, is the token distributed by Cranium Exchange as rewards. These escrowed tokens can be staked just like $SKULL tokens and earn the same rewards rate but need to be vested linearly over the course of a year to become standard $SKULL tokens thereby become transferable. Since $esSKULL is not mean to be traded, it can only transferred if one changes the account hey belong to on Cranium.

1.5. Skull Order NFT (SON) sale

The Skull Order NFT (SON) collection is a limited edition offering of 5,000 unique NFTs, each with its own unique characteristics. The collection offers a total bonus of 987,400 $esSKULL tokens, which serves as a reward for early adopters of the collection. The initial price of the NFTs is 500 FTM and each NFT comes with an initial power of 10,000 and a bonus of 250 $esSkull. SON collection has 50 tiers of 100 NFTs each. The price of minting an NFT will increase and power as well as the $esSKULL reward decrease by 1% with every 100 NFTs minted. The funds generated from the sale of the Skull Order NFTs will be allocated towards various key initiatives for a successful launch and sustainable development of the Skull Order Ecosystem. 15% of the funds are allocated towards providing initial liquidity for the $SKULL token. 60% of the funds are destined to be added as liquidity for the SLP pool. This SLP position will be responsible for generating a significant part of NFT stakers’ yield.
In addition, 3% of the funds are allocated towards marketing efforts, helping to increase awareness and adoption of the ecosystem. 7% of the funds are allocated towards the treasury, ensuring the long-term stability, funding daily operations as well as ecosystem development. The remaining 15% of the funds are allocated to funding other initiatives such as running 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 on the value accrued to the treasury.

2. Tokenomics

The $SKULL token has a total supply of 7,000,000 tokens. $SKULL is the backbone of the entire Skull Order Ecosystem and can be staked on all protocols but only earned on Cranium Exchange and SkullSwap. Here’s how it is allocated:

• 46% of the supply allocated to the SkullSwap protocol
• 56% of the supply allocated to the Cranium Exchange protocol. Regarding SkullSwap’s $SKULL allocation, 30% of the tokens are destined for initial liquidity (locked). 44% are dedicated to farming rewards, which are distributed as $dSKULL. The partnership program will receive 16% of the tokens, while 3% is allocated for development funds, the team, and project development. These tokens are distributed/vested over 3 years, except Project Development (2 years) and Partnership Program (4 years). Remaining 1% is dedicated to Airdrops and will be distributed at the team’s discretion. Regarding Cranium’s allocation, all tokens come in the form of $esSKULL. 26% of the tokens are distributed to buyers of Skull Order NFTs, as a bonus from the NFT Sale hosted on Cranium Exchange. 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 vesting linearly over a period of 1 year.

3. Skull Order’s role in Fantom’s DeFi market

Cranium and SkullSwap represent Skull Order’s play in the DEX sector. This is sector of DeFi that is not just crucial but one capable of consistently capturing significant value over time. The goal is to provide all the features and tools that DeFi users need in their activities. When a user desires to make a simple swap between tokens, his needs can be optimally satisfied by SkullSwap through its concentrated liquidity pools. Note that after purchasing the necessary license from Algebra, Skullswap will be the first protocol to support the technology in the Fantom ecosystem. This differentiating factor will allow SkullSwap to be more efficient than leading Dexes on Fantom. The efficiency gains will result in better pricing for traders as well better returns for liquidity providers. Furthermore, if one is looking to employ a more elaborate trading strategy, Cranium Exchange is the protocol to head to, given it supports leverage trading with no price impact. Depeg represents Skull Order’s move in the exotic options market. We intend to launch Depeg sometime after Feb 20th, the date on which SkullSwap and Cranium will be launched.

We believe Skull Order to be a first of its kind and a new approach towards DeFi development. Having multiple projects share a single token with yield-earning opportunities on all of them is expected enable the $SKULL token to capture more value, therefore becoming more stable and the overall ecosystem to be more sustainable. We also plan to deploy more projects that will make up Skull Order. One of these will likely be a lending protocol, albeit nothing has been confirmed so far.