Driving USDs with Sperax DAO
Sperax introduces the Sperax Improvement Proposal, and the foundation of the Sperax DAO is born.
As outlined in the H2 Roadmap, Sperax is committed to automating the collateral deployment process and decentralizing decision making via DAO. As a major step towards a fully deterministic DAO, we are launching off-chain governance. This empowers SPA holders to manage key parameters of the SperaxUSD protocol — with support, reflection, and implementation by the Sperax Team.
All upgrades to the protocol will now be done after consulting the community and having the proposal approved via token vote.
As an instrument for risk-off yield automation, USDs requires SPA holders to constantly consider new collaterals and new collateral deployment strategies. The goal is to capture high yield in various DeFi protocols while never getting rugged. When done well, token holders see success of the protocol in their own wallet thanks to the revenue split, where 50% of yield generated is distributed to SPA stakers and collateral managers via the weekly $SPA buyback.
The DAO governance process will formulate, accept, and implement Sperax Improvement Proposals (SIP) in four distinct steps:
Through discussion in Discord, ideas will gain traction and momentum within the community. After serious discussion in the dedicated Discord channel, the idea will move outside Discord, to forum, as a formal Sperax Improvement Proposal.
Community members bring Sperax Improvement Proposals to forum, using a template that helps convey key features of the proposal. With community and moderator support, the proposal will showcase a finaled format before bringing the proposal to vote.
The team anticipates adding new collateral and adding new collateral deployment strategies as the first proposals.
3. Snapshot Vote
Once a proposal discussion has concluded on the forum, forum moderators will bring the SIP to a snapshot vote. Votes on Snapshot are weighted by the number of veSPA delegated to each address used to vote.
‘Yes’ will require at least 50% of votes, AND, at least 20 MM veSPA in quorum voting.
If ‘Yes’ conditions are not met, the proposal will be marked closed by the moderators.
4. Sperax Improvement Plan
If an SIP reaches minimum participation with >50% voting yes, the proposal will move to a list of all accepted proposals, called the Sperax Improvement Plan. The Sperax engineering team will pick up proposals from SIP for implementation based on bandwidth, and the community can also write code for implementing proposals from the SIP. All code will undergo audit before implementation.
How Sperax DAO Drives SperaxUSD
With the implementation of the off-chain DAO, the ultimate vision for the SperaxUSD Auto-Yield machine has begun to materialize. With all components carefully managed, the engine of the SperaxUSD machine hums, deploying collateral into delta neutral yield generating opportunities.
The DAO allows veSPA holders to take over as the operator of the SperaxUSD machine, making key decisions on which levers are turned.
The Sperax team is the group of mechanics, committed to identifying opportunities, assessing community proposals, and proposing changes to help the machine run smoothly. The Sperax community has the potential to operate the most powerful wealth generating machine on the internet — sharing the upside with skin in the game on the downside.
The machine needs USDs TVL to pour in as the main source of fuel, in order for operators and mechanics to run the machine.
When everyone does their job, the protocol’s engine can run all by itself, proving huge rewards to anyone who holds the SPA keys.
What Can the DAO Control?
The health of the protocol relies on adapting to market conditions to capture yield with USDs while mitigating risk. Through Discord, the community can ideate key parameter changes and direct collateral deployment for sustainable USDs Auto-Yield and veSPA revenue split. The community may generate and support features novel to the Sperax Team, strengthening the direction of the protocol.
In the early days of off-chain governance the process is liable to change, especially with community input.
Check out the DAO Discord Channel and add to the discussion. Let us know what you’d like to see next from Sperax!
In our next Governance post, we’ll continue to unwrap Sperax’s evolving governance process by introducing our multi-stage proposal advancement, along with the implementation of Discord roles via Collab.land!
Sperax is dedicated to benefiting all financial lives with blockchain technology.
Sperax has built the first Auto-Yield stablecoin, $USDs, to harness DeFi yield with a target 11% APY.
$SPA, the Sperax governance token, rewards stakers who empower Sperax DAO to make $USDs fully decentralized, and 100% collateralized by exogenous, on-chain assets.
The protocol is currently in a growth stage, bridging the gap to crypto for a global user base by offering $USDs on user-friendly platforms.
Read more at sperax.io and join the Sperax community!