How the DeFi Mullet Drives SperaxUSD TVL
The DeFi Mullet puts Fintech in the front and DeFi in the back.
TL;DR Sperax USD is powering Investment apps like Streetbeat with full collateralization & organic yield generation. These fintech partnerships offer DeFi to the masses while driving value to SperaxUSD.
Usage on Streetbeat = higher protocol TVL = yield revenue increase = more SPA bought back and sent to SPA stakers.
Fintech in the Front, DeFi in the Back
In light of centralized institutions becoming insolvent and pausing user withdrawals, top finance companies are outsourcing their crypto infrastructure to Decentralized Finance protocols. The internet has found its trusted money layer: Ethereum.
Most DeFi / Fintech partnerships today require users to stake, claim, and navigate the nuances of crypto to earn yield. The USDs x Streetbeat partnership is the first time DeFi is truly grinding away behind the scenes while the DeFi experience is abstracted away from the end user.
Through a familiar app experience, users are earning high yield without volatility or gas fees, thanks to yield strategies powered by SperaxUSD. The Sperax and Streetbeat collaboration is the first example of how DeFi protocols can rock a DeFi mullet to bootstrap protocol TVL.
Why is SperaxUSD the premiere DeFi service provider for fintechs?
Unlike other stablecoin yield protocols that use native tokens to fund the yield payments, SperaxUSD funds the 11% target Auto-yield by generating yield with stablecoins in the collateral reserve.
Stablecoins are deposited into SperaxUSD through the minting process, then sent to various DeFi protocols to generate yield.
Sperax uses a diversified basket of stablecoins to back USDs, users can always redeem USDs for stablecoins from the vault or swap USDs on a DEX. While eliminating bank-run risk, this also proves higher TVL to sustain the Auto-Yield gate given to the fintech users.
With the Sperax DApp, USDs can be redeemed for underlying collateral at will. If Streetbeat wishes to redeem users stablecoins from the SperaxUSD vault, that is their choice to do so. Sperax never custodies the funds.
The Massive Opportunity for SperaxUSD
So far, the numbers tell the whole story. 35,000 users on Streetbeat have used the app to buy over 750,000 USDs. Each user is now earning hassle-free Auto-Yield without any necessary crypto expertise.
These new holders drive SPA value accrual. As fintechs take advantage of USDs Auto-Yield by minting USDs, protocol TVL increases. With more collateral to deploy, more yield is earned.
As further DeFi mullet partnerships are secured, USDs solidifies itself as a novel crypto-powered savings account. If the Sperax business development team and community can secure multiple DeFi mullet partnerships, we believe it’s possible to have comparable TLV/AUM compared to major trading platforms like Robinhood. These trading platforms have AUM that rival major traditional financial brokerages.
For a thought experiment, let’s say SperaxUSD becomes the defacto yield generation protocol for fintech apps. This could drive the AUM of each of these fintechs into the tens of millions, totaling potentially 40B total TVL for the SperaxUSD protocol. This AUM is exactly half of Robinhood’s current AUM.
Once 40B worth of collateral is managed by SperaxUSD, SPA will have incredible amounts of buying pressure from the open market. Buying pressure comes from the yield revenue split, mint/redeem fees and organic market demand for the revenue split cash flow.
With 40B in assets earning 4% APR, annual yield produced is $1.6B. Half of this yield is reserved to fund the Auto-Yield rate, the other half is used to buy back SPA from DEX’s. The $1.6B in yield generated would result in weekly buybacks of over $16M SPA. This quantity of buying and distributing SPA would make SPA one of the highest capital producing assets in the crypto space.
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!