Scheduled Sperax smart contract upgrade to allow SPA minting

Sperax Team
Sperax
Published in
2 min readAug 22, 2021

Hello Sperax Community,

Sperax is upgrading its smart contract on August 29, 2021, for 10 hours with two major changes.

  1. Upgrade to elastic SPA supply, allowing for the price of SPA to reflect the growth and adoption of SperaxUSD (USDs).
  2. A short term safety mechanism, allowing for Sperax to pause the minting of SPA. This feature will be removed once approved by DAO vote.

These adjustments are essential for a number of reasons.

  1. The Minting function of SPA makes SPA supply elastic. This is crucial for USDs price to maintain its peg.
  2. Since SPA supply becomes elastic, as new USDs are minted, SPA will be burned instead of stored in a burned contract. Hence, with all else constant, the dollar value of SPA will increase as USDs launches.
  3. As adoption increases, so will the SPA burn rate, meaning that SPA supply can decrease over time, comparable to the ultra-sound money concept of EIP-1559 on Ethereum.
  4. The safety mechanism, i.e. SPA minting pauser, protects the community in the event of a minting hack. This pauser would only be activated if there is a black swan event. Once the community is comfortable with the safety of the protocol, this will be passed onto the DAO.
  5. Mint functionality reduces the risk of bank run as the DAO can always provide backing assets for outstanding USDs by minting more SPA.

The upgrade will have NO NEGATIVE EFFECT on any of our community members or token holders.

The upgraded smart contract will enable the USDs stablecoin protocol to safely return to the peg. Token holders can benefit from the smart contract upgrade in both the short and long term:

  • Short term: USDs growth and adoption will be directly reflected in the value of SPA due to the SPA burn as USDs is minted.
  • Long Term: Significantly reduces insolvency risk, drastically reducing the probability of a bank run type event.

Disclaimer:

  • For CEX users: The Sperax team will inform centralized exchanges that support USDs and SPA of the noted remapping. Each exchange, not Sperax, will be responsible for proceeding the upgrade on behalf of their users.
  • For DEX users: For users who previously staked SPAs to a DEX (decentralized exchange) or a similar DeFi platform, please redeem your assets back to your wallet before we pause the previous contract and initiate the mapping procedure. Otherwise, your tokens will be lost.

About Sperax

Sperax is dedicated to benefiting all financial lives with blockchain technology.

Sperax builds modern money with blockchain technology. With the Sperax token ($SPA) at its core, Sperax builds a crypto-collateralized algorithmic stablecoin, $USDs, and a suite of DeFi apps.

As always, please join our communities!

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