Sperax 2023: H1 Highlights & H2 Focus
The Sperax community is better positioned than ever to thrive in the coming bull market. Over the first Six months of 2023, the Sperax team has continued to ship through highly unfavorable market conditions, ending the first half of H1 with more USDs in circulation compared to the end of 2022. The Sperax community will continue to build out a fully collateralized, highly-liquid, auto-yielding stablecoin and defi ecosystem.
H1 Recap
USDs Minted: $39,165,504
USDs Redeemed: $36,811,711
Circulating USDs: $2,353,793
USDs $1 Peg Maintained
USDs minimum APY: 10.09% APR
Bribes Value: $123,812
USDs Revenue: $44,500
SPA price ATH: $0.014
SPA staking: 306.72M
Camelot integrated into Demeter
Demeter farms
Total farms launched with Demeter - 27
Total camelot farms launched with Demeter - 4
Total tokens bribed to veSPA voters
Vela 1,565.00
BFR 20,001.00
L2DAO 810,000.00
PLS 95,278.77
SPA 7,090,367.50
ACRE 3,600,000.00
NFTE 50,000.00
ROUL 800,000.00
USD+ 3,000.00
Arbitrum ARB airdrop totaling $2,160,000
xGRAIL partnership allocation totaling $350,000
SPA Centralized Exchange Listings
Coinbase
Crypto.com
H2 Focus
The primary mission has remained simple, enabling the SperaxUSD protocol to operate autonomously with incentives aligned in such a way that will grow USDs adoption, increase protocol revenue and reduce the rate at which SPA is emitted.
Decentralization of SperaxUSD
The Smart contract architecture is being upgraded to decentralize certain functionalities which were earlier previously managed via a multisig. To reduce reliance on any team to conduct certain protocol activity, key functionalities will be decentralized such as:
Depositing and withdrawing collateral from yield strategies
Harvesting yield-farmed tokens from yield strategies
Exchanging harvested yield tokens for USDs
Introducing a new dripper contract
Distribution of auto-yield to all eligible addresses
Once the code is complete, we will first launch and test the product on testnet. From a security perspective, there will be at least one professional security audit in addition to the various bug bounties. Once the protocol has been tested by auditors and the community, we will deploy it to the Arbitrum mainnet. More details can be found here in the USDs 2.0 article.
Managing SPA Emissions and Sell Pressure
Instead of a subjective governance process where an arbitrary amount of SPA is emitted to incentivize USDs in Demeter pools, SperaxUSD will take an optimized, more systemic approach moving forward. The general idea is simple: radically reduce the amount of liquid SPA which is emitted. For every dollar of USDs TVL in the pool, there will be a preallocated emission budget of SPA. To reduce the amount of liquid SPA emitted, other tokens will be used to incentivize liquidity.
Reducing Risk
Staking Vaults
This new product coming to the SperaxUSD ecosystem delivers sticky liquidity for USDs traders while spreading risk across willing actors in the ecosystem. These staking vaults require users to deposit various LP tokens which include USDs. The major one will be USDs - USDC. Depositors into these vaults will take on additional risk in exchange for a greater share of auto yield and veSPA emissions. The risk these deposits are exposed to is the risk of USDs somehow ending up undercollateralized. In the event, there is an exploit and some collateral is lost, these stakers will be the first to take a haircut on their USDs balance.
Insurance pools
Extra auto-yield which isn’t owed to USDs holders can be used to backstop the protocol in the event USDs suffered an exploit and became undercollateralized. This insurance pool will be funded first by any access auto-yield which is generated beyond the 11% target required by users holding USDs in their wallet. Future protocol revenue can be directed to this pool as well.
Governance Minimization
Instead of an arbitrary governance process, the SperaxUSD team is working on a proposal that will identify the few areas of the protocol which should be upgradable and permanently remove any other aspects of the contract architecture which are currently upgradable and don’t need to be. Governance votes will pertain to only these specific upgradable parameters, all else will be removed to reduce the risk of protocol capture.
Growing USDs
USDs CDP
Instead of taking only the above approach of incentivizing the usage of USDs through token incentives from SPA and our partners, SperaxUSD will feature a credit facility before the end of the year. Users can mint USDs against approved collaterals, especially liquid-staked derivatives.
This massive upgrade will radically improve the user experience for users borrowing within the Arbitrum ecosystem and also an explosive demand driver for USDs.
Growth Farms
The second half of 2023 will bring USDs growth farms. This campaign will feature new vaults designed specifically to increase the circulating supply and liquidity of USDs by focusing on USDs only and stablecoin to stablecoin liquidity deposits. By only incentivizing stablecoins, the least amount of SPA must be emitted thanks to the capital efficiency of a stable swap DEX. These farms will be incentivized with ARB, veSPA, xGRAIL, and SPA. In addition to the increased protocol revenue from the USDs increase, we can expect additional benefits:
Liquidity moat: As USDs liquidity increases, this creates a competitive moat around USDs. When trading fees are cheap and slippage is low, USDs becomes the de facto stablecoin of Arbitrum.
Chainlink Price Feed: Hit chainlink liquidity target of 40M in the pool and 2M daily trade volume.
Auto-Yield Boost: All USDs collateral generates yield, but not all USDs receive the yield. USDs in smart contracts (like trading pairs) are exempt from Auto-yield. This creates a boost effect for users with USDs in their wallets.
Demeter dApp Upgrade
Better data rendering through the backend
Multi-chain
More analytics features for LPs (paid)
Other arbitrum DEXs
About Us
Sperax USD is a stablecoin and yield automator on Arbitrum. Hold $USDs and earn
Auto Yield. Stake $SPA to govern the collateral investment strategy.
Read more at sperax.io and join the Sperax community!