Sperax
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Sperax

Extending Stablecoin Farm — Up to 30% Fixed APR

Sperax reloads the USDC / USDs pool with a 4M SPA budget.

To encourage healthy liquidity for USDs swaps and a stable peg, we are rolling over the Uniswap v3 Uniswap farm.

This pool is perfect for users looking to protect their principal during the bear market while continuing to capture upside benefit. Users willing to lock their positions can guarantee returns of 30% APR priced in SPA at the time of deposit. Let’s learn how it works, understand the benefits, and assess the current opportunities thanks to low prices.

This farm will reward liquidity providers (LPs) with or without lockups, giving LPs the flexibility to move in and out of the pool at their leisure. SPA rewards will accrue continuously, meaning that LPs can claim tokens whenever they want, unless they lock up. If users want to lock their tokens, the pool will offer a 30% APR to incentivize sticky liquidity, with a 21-day cooldown period.

Check out the farm!

Parameters

Arbitrum Uniswap v3

Price Range: 0.95–1.05

Token Pair: USDC / USDs

Budget: 4 million SPA

Duration: 6 month/180 days (i.e. after 30 days, user cannot choose 150 days-lockup)

Check out the full parameters on the Sperax Gitbook.

Bear Market Resistance

Fixed APR

Farmers can lock-in a per-block reward in $SPA. This way, the farmer’s $SPA share of rewards doesn’t decrease as the farm gets more popular.

Boosted Trading Fees

Our farms harness the power of @Uniswap v3, automatically providing concentrated liquidity.

This complicated process is automatically performed for all $USDs / $USDC farmers to boost the effectiveness of your position, by boosting your trading fee per deposited dollar by up to 100.

Protected Downside

Remember, this is a stablecoin pool that pays a fixed APR in $SPA. This means farmers keep upside exposure while protecting downside risk. But what the heck does that mean? Let’s walk through a scenario and assess potential outcomes and payoffs:

A user has $20,000 USD stored in #stablecoins. They are concerned about market volatility. These stablecoins should be put to work, to earn more money, without risking the principal, right? But where?

Locking $20,000

At the price of $0.0051 per $SPA, $20,000 of stablecoins guarantees that 478,680 $SPA can be withdrawn from the reserve in 150 days.

Possible outcome 1: 10x increase in $SPA price to $.05

Possible outcome 2: 50% decrease in $SPA price to $0.0025

Outcome 1 ROI: 119.67%

478,680 $SPA * $0.005 = $23,934

$23,934 + $20,000 = $43,934

Outcome 2 ROI: 5.98%

478,680 $SPA * $0.0025 = $1,196.78

$1,196.7 + $20,000 = $21,196.78

This strategy is designed to provide you an opportunity to capture upside of this market while protecting your downside risk, assuming security of USDC and USDs. Try out our LM calculator to play with potential earnings by heading over to the farms!

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