How Sperax is Building Modern Money using Blockchain
Sperax is a multinational technology company that uses blockchain technology to create contemporary money. Sperax has developed a mobile app, Sperax Play, and is developing a DeFi ecosystem with various products, including the automatic yield-bearing stable coin SperaxUSD, synthetic assets, and derivatives. Sperax hopes to bridge the gap between experienced and inexperienced cryptocurrency users with these solutions.
The use of stablecoins has been accelerated by expanding the decentralised finance (DeFi) ecosystem. However, existing stablecoins, such as fiat-backed stablecoins (USDT, USDC), are centralised, over-collateralised stablecoins (DAI) are capital inefficient, and algo-stablecoins (like Basis, Terra) are difficult to bootstrap and have high volatility periods.
Thus, there is the need to combine the best features of prior stablecoins, including explicit collateral for price stability and partial algorithmic stabilisation for scalability.
Sperax has created a hybrid stablecoin, Sperax USD (USDs), based on the Sperax ERC-20 token SPA. Sperax USD (USDs) combines the two most extensively used stablecoin strategies: crypto collateralisation and algorithmic stabilisation.
Sperax USD (USDs) will provide all customers with steady interest rates as a tool for asset preservation and growth. The USDs is a highly scalable and trustless stablecoin that will become decentralised once the governance protocol is running.
Sperax USD
Sperax USD is a yield-bearing crypto-collateralised algorithmic stablecoin on the Arbitrum network. The USDs is a hybrid (crypto-collateralised and algorithmic) stablecoin that generates auto-yield natively. USDs are currently available on Arbitrum, Ethereum’s largest Layer-2 Ecosystem.
It is the largest algo-stablecoin on Arbitrum, with $20 million in Total Value Locked in the first two months. In balancing USDs, the extent to which USDs contract directly refers to the extent to which the Sperax Governance token expands.
The protocol will provide passive revenue to USDs adopters. The collaterals that customers have locked will be re-invested through Sperax DeFi aggregators to generate ongoing interest.
How to Earn Sperax USDs
1. Minting: When a USDs is minted, some Sperax governance token is being burned.
2. Burning: When users burn USDs, some Sperax governance token is also minted.
Key Features of the Sperax USD Protocol
Hybrid Model: To algorithmically stabilise the uncollateralised component, USDs will be expressly collateralised by a pool of qualified crypto-assets and implicitly by the protocol through the Sperax (SPA) governance token. The Sperax ecosystem’s governance and value accrual token is SPA.
Dynamic change between Algorithmic and Collateralised Stabilisation: The specific composition of the algorithmically stabilised and explicitly collateralised components is dynamic. It changes according to the passage of time and the state of the market.
Auto-Yield: Organic yield is automatically earned by users who keep USDs in their wallets. The end-user is not needed to stake anything. Users do not need to waste gas phoning the smart contract to claim their yield.
Layer 2 Native: Arbitrum’s lower transaction fees make it more appealing to regular investors.
Liquidity Mining on Sperax Farms
Here are several rules guiding liquidity mining on Sperax Farms.
- Liquidity mining’s APR is computed, estimated, and paid in SPA.
- For both lockup and non-lockup players, the APR is predetermined and fixed in SPA terms. Therefore, in SPA, the APR is highest for those locked up the longest and lowest for those who have not been locked up at all.
- The fundamental value on which the APR is computed depends on the SPA price.
- Each Farm contract has a finite SPA budget, after which no additional participants will be able to lock in their liquidity.
- Participants who lock up their liquidity are given preference over those who do not.
- Participants that pick the no lockup option and do not lock up their liquidity must unstake to claim their incentives.
- Each Farm contract has a finite SPA budget, after which no additional participants will be able to lock in their liquidity.
- Participants who lock up their liquidity are given preference over those who do not.
- Participants that pick the no lockup option and do not lock up their liquidity must unstake to secure their incentives.
- When a no lockup participant unstakes their position after the SPA budget has been locked up or claimed, they will be unable to claim any benefits.
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