Demeter Genesis Is Upon Us
Crypto and DeFi are in a bear market, but the builders are still grinding away. Here at Sperax we contribute to the decentralized movement, the one building a globally accessible and permissionless financial system. As the world becomes digitalized, we believe a fundamental component of such a system is the ability for anyone to produce liquid markets for digital goods.
Demeter, a new protocol built by Sperax, is a publicly available application which gives anyone the power to produce liquid markets for digital assets. These assets can include defi tokens, digital currencies, goods in virtual economies, even game/metaverse NFTs.
After the approval of SIP-17, DAO’s that use Demeter for their decentralized exchange liquidity can receive 1:1 matched SPA rewards for up to 90 days. This article explains how to get your rewards.
What is Demeter
The Demeter protocol is a tool for DAOs to launch and manage decentralized exchange liquidity on Uniswap v3 — without needing to know how to code.
Anyone with an internet connection can spin up a farm with rewards to incentivize a liquid marketplace for their digital assets. Almost overnight, users and the community can buy or sell digital assets in a 100% decentralized way. Trades happen right from the users wallet.
With Demeter v1, DAOs can launch and manage the rewards for Uniswap v3 pools. DAOs benefit from engineering, financial, and marketing support when using Demeter. Let’s learn how.
Understanding The Pain Points
To better understand the product, let’s first look at the problems Demeter is solving.
Uniswap v3 NFT LP Positions (Engineering) — Kain Warwick, Founder of Synthetix, said it best, “Uniswap V3 nft positions inadvertently ruined yield farming, prove me wrong”. Custom liquidity ranges create capital efficiency but result in NFTs that are unique to each LP position. The NFT LP makes engineering a farm very challenging. Demeter solves this by automating farm launch and management for DAOs.
Funding Liquidity Incentives (Financial) — When considering a liquidity campaign, DAOs have to weigh the tradeoff of providing token emissions versus the resulting sell pressure. Demeter can reduce the DAOs spend by 50% thanks to the matching budget.
Market Awareness (Marketing) — New DAO’s often lack the reach to advertise new pools. Farmers aren’t aware of the potential value of the tokens because they aren’t familiar with the project. Sophisticated farmers can find nascent farms, provide significant capital, collect rewards just to dump. When using Demeter, DAOs get to spread the word about their product and convince these farmers that the rewards could accrue value as the protocol matures, creating long term holders.
Stakeholder Benefits
SPA holders and Stakers
USDs currently doesn’t have a lot of liquidity against other tokens, a joint incentivized liquidity campaign would lead to an increase in USDs trading pairs, USDs liquidity and protocol TVL. The increased TVL will produce more protocol revenue, burning more SPA and driving more free cash flow to SPA stakers.
USDs holders
The Sperax USD protocol only pays Auto-Yield to USDs in user wallets. This produces the Auto-Yield boosting phenomenon. Each USDs has $1 worth of collateral generating yield, but not each USDs receives this yield. When USDs in Demeter pools grow, USDs in the pool are added to the non-rebasing supply. The yield generated on this collateral BOOSTS the Auto-Yield rate.
Arbitrum Ecosystem
Public tools to make launching farms easier will position Arbitrum as the most defi friendly ecosystem on the market. With a turnkey liquidity solution, the ecosystem can expect significant liquidity to be attracted from other chains to participate in the various benefits offered by Demeter during the Genesis campaign.
DAO’s using Demeter
Engineering, Financial, Marketing support.
Live Demeter Farms
Each additional Demeter user benefits the previous. As TVL increases, the protocol burns more SPA, the SPA price could increase. More valuable rewards allow more protocols to benefit from the rewards. More rewards encourages more USDs trading pairs launch. More pairs increases USDs TVL and makes their assets become even more liquid. With multiple pairs to route the trade, users can swap native DAO tokens for all major assets.
Demeter Launch Partners
These protocols are launching farms with Demeter and their liquidity rewards go live November 14. Deposit into pools using Demeter, capture token incentives. Below are the pool emission details:
GMX — Defi’s leading decentralized perpetuals trading platform
The GMX-USDs pool will be incentivized with $5k worth of GMX a week for 6 weeks. Emissions may be adjusted by GMX for the following weeks depending on TVL in the pool. This contribution will be matched with SPA.
PlutusDAO — Arbitrum’s governance black hole
PLS-USDs pool will be incentivized with 14,000 (~$7k) PLS a month for 3 months. This contribution will be matched with SPA.
Saddle Finance — Low slippage swap DEX
SDL-USDs pool will be incentivized with 333,333 (~$5k) SDL a month for 3 months. This contribution will be matched with SPA.
Layer2DAO — Largest L2 native DAO
L2DAO-USDs pool will be incentivized with 400k (~$3.5k) L2DAO a month for 3 months. This contribution will be matched with SPA.
VELA — Promising perpetuals Exchange
VELA-USDs pool will be incentivized with 20k VELA ($12,000) a month for 3 months. This contribution will be matched with SPA pending SIPX passing.
Participate In Genesis
The Sperax community welcomes DAOs to submit an SIP requesting to be added to the genesis campaign:
DAOs can launch their farms with no risk thanks to knowing whether or not their SIP has been accepted into Genesis, before having to launch the pool or allocate their portion of rewards.
Follow us on twitter (@SperaxUSD) to stay up to date with any pre-launch deposits or announcements! Let the farming begin.
