Illuvium’s Discounted Gift Cards are Back - The FAQ on sILV2

By Deraji | ILVFi | 6 Mar 2022

With sILV2 coming back and the return of the Uniswap sILV2/ETH pool, there are a lot of questions.  Here, I’ll try to break down the most common questions to help as you evaluate everything sILV2!

What is sILV2?

sILV2 is an ERC-20 token from Illuvium.  sILV2 essentially works like a gift card in the Illuvium system, with the value pegged to the current value of ILV, the Illuvium governance token.  While the primary currency of Illuvium is ETH, sILV2 is a potential reward for staking with Illuvium.  In transactions with the DAO (e.g. the upcoming land sale and Illuvatar sale) sILV2 can be used in place of ETH.  

What can I use sILV2 for?

sILV2 can be used in transactions with the DAO in place of ETH, the primary in-game currency.  The first use cases for this token are likely the land sale and the sale of Illuvatars.  Once the Illuvium main game launches, sILV2 can be used for fees such as travel to zones and curing of shards (the means of capturing Illuvials).

What can’t I use sILV2 for?

sILV2 can’t be used in transactions with other players, such as buying Illuvials, or purchasing land on the secondary market.  sILV2 only has value pegged to ILV in transactions with the DAO.

How do I get sILV2?

The primary way to get sILV2 is through staking with Illuvium.  When staking, rewards are accrued and must be claimed through a separate transaction.  Upon claiming, the staker has the choice to claim as ILV, the governance token, or sILV2, the “gift card.”  

The secondary way to acquire sILV2 is through DeFi exchanges, currently only on Uniswap.  As an ERC-20 token, it can be exchanged via decentralized exchanges, though such liquidity pairs are not formally sanctioned or endorsed by the DAO.


Why should I claim sILV2?

There are two primary reasons to claim sILV2 over ILV.  If you’re more interested in playing the games over governance, you can use staking as a means to fund your game play or land purchase.  

The second reason is to gain liquidity in staking rewards.  As staked ILV and ETH/ILV liquidity pair can be locked for up to 12 months, claiming sILV2 can be a means to regaining liquidity sooner.  While the ILV token requires a 12-month vesting period from the time that it is claimed, sILV2 is immediately available in your wallet for in-game use or trading.

Conversely, ILV cannot be used for in-game purchases, but is eligible to be staked, which enables yield farming rewards and is also eligible for revenue distribution.  sILV2 cannot be staked nor is it eligible for revenue distribution.

How do I buy sILV2?

There is no officially sanctioned exchange for sILV2, however, an unofficial pool has been set up on Uniswap here.  Please confirm the token address from the official Illuvium Medium article, though for convenience the token address is listed below.  Always confirm the token address through official sources, as it is quite easy to create a counterfeit token.  The DAO will not be responsible for loss or issues resulting from trading sILV2.

To use the pool is rather simple.  Go to, enter the token address, and exchange to/from ETH.  Always be cautious of slippage for pools with low liquidity as the price may change significantly based on your trade.

You can track recent trades on the sILV2/ETH pair here.


What is the token contract for sILV2?

0x7E77dCb127F99ECe88230a64Db8d595F31F1b068 though we recommend confirming on the official Illuvium Medium blog here.  Use the token contract to search on Uniswap to confirm you are swapping for the correct token.

Why is sILV2 at such a discount to ILV?

Since there is currently no use case for sILV2 and the only means of exchange is the unofficial Uniswap pool, there is greater selling pressure on the token due to stakers seeking liquidity.  As the ILV token can change in value, there is no guarantee that your sILV2 will have the same purchasing power in the future.  Once there is a use case for sILV2, expect the sILV2/ILV price ratio to increase, though the sILV2 price should always be slightly lower than the actual price of ILV on the secondary market.  If sILV2 were to be valued higher than ILV, it would be better to immediately sell your sILV2 and just use ETH as the in-game currency.  As long as sILV2 is lower in price than ILV, it makes sense for people to use sILV2, however, you must account for transaction fees to acquire and use sILV2.  In short, it is possible to purchase your Illuvium gift cards at a discount using the Uniswap pool, but be aware of the risks involved.

Can I use a combination of sILV2 and ETH to buy…?

In transactions with the DAO, it has been stated that the full amount of the purchase must be done in either sILV2 or ETH.  For example, in buying land, if you purchase land for 1 ETH and wish to use sILV2, you must have the full amount in sILV2.  If  ETH is at $2500 and ILV is at $500, that means you must have 5 sILV2 to complete the purchase.

I had the original sILV - how do I get my replacement sILV2r?

Go to the official Illuvium Medium blog to confirm how to receive your replacement sILV2.  Vetemor put together a quick video that also shows the full process.

What happened to the original sILV?

See the articles here for more information.  There was an issue with the original staking contracts and a large number of counterfeit sILV were created and used to extract value from the original sILV liquidity pool (also unsanctioned, just like the new sILV2 pool).  The team took action, which involved creating a completely new token to use as sILV.

How does the number of sILV2 impact ILV?

There is a maximum potential of 10 million ILV tokens.  Staking rewards are to be issued from the end of June 2021 through June 2024, a period of three years.  Over this time, 3 million ILV will be distributed as staking rewards.  Currently, the only means of generating sILV2 is by individual stakers choosing to receive their rewards as sILV2 rather than ILV.  For each sILV2 that is claimed, an ILV token is never minted, reducing the overall supply of ILV tokens.  

As of early March 2022, a little over 100k sILV2 have been claimed, with around 400k rewards pending claiming, and around 1.6 million ILV in rewards yet to be distributed.  

Proposals have been discussed to allow Illuvium stakers the opportunity to claim in-game reward ILV and revenue distribution as sILV2, however at this time, no formal proposal has been passed to enable this.


Thanks for reading!  What other questions do you have around sILV2?  Feel free to comment below and I'll continue to update this list.

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Crypto curious thinker, amateur economist, geriatric millennial gamer passionate about Illuvium. Happy to share my economic and financial assessment of this unique blockchain NFT Play-to-Earn project.


ILVFI focuses on the upcoming P2E game, Illuvium, the first proposed AAA-quality video game based on blockchain technology and NFT ownership. We'll focus on both the game play, as well as the in-game and ILV governance token economics.

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