SPA Gauge — Progress Report (Epoch 1–5)
Since the launch of SPA Gauges, we have seen tremendous growth and participation from the Arbitrum community. This article brings the reader through high level Demeter / SPA Gauges strategy, key performance metrics thus far and what the future may hold for this Arbitrum-native liquidity management protocol.
Who Uses Demeter
Demeter protocol and the accompanying SPA Gauges are a public good within the Arbitrum ecosystem which services three key user groups:
- Protocol/DAO core team: Increase on-chain liquidity, migrate a token from other chains or simply concentrated liquidity with Uniswap v3.
- Liquidity Providers: These users collect transaction fees, emissions from the SPA gauge and emissions provided by protocols/DAOs.
- Liquidity Directors: These users stake SPA to vote and direct SPA emissions to various Demeter farms. Liquidity directors collect bribes from protocols/DAOs to increase votes on various pools.
Protocols that use Demeter launch with USDs to automatically earn a SPA Gauge. At this point, they can bribe veSPA holders for SPA rewards to increase their on-chain liquidity. More USDs trading pairs increases the circulating supply and velocity of USDs, driving more revenue to the SperaxUSD protocol and SPA stakers.
Progress and Key Stats
Demeter Proof of Concept: September 2022
Starting with a Demeter proof of concept, Layer2DAO in collaboration with SperaxDAO launched the first ever Demeter farm on top of Uniswap v3. Without writing any code, the Layer2DAO team used Demeter to launch a concentrated liquidity pool and yield farm on top of the Uniswap v3 pool.
Demeter Genesis: Nov 2022
The SPA Gauge launched with a cohort of 6 Arbitrum innovators. These projects took a leap of faith and decided to partner with SperaxDAO to launch USDs liquidity pools for their tokens and provide rewards to LPs. Pools that received SPA gauges on launch day:
GMX, Saddle, Plutus, FOREX, L2DAO rewards streamed on day 1. Liquidity providers on demeter were the enjoyers of the one and only venue to earn GMX by providing liquidity to a GMX trading pair.
SPA Gauge Launch: Feb 2023
In the first Epoch, our committed partner PlutusDAO showed the community how Demeter + SPA gauges can attract liquidity to desired trading pairs. PlutusDAO bribed two pairs with PLS: plsSPA — SPA and PLS — USDs.
In the first 5 Epochs Demeter has seen participation from Arbitrum’s leading protocols. Bribes were provided by Vela Exchange, Buffer Finance, PlutusDAO and ArbiRoul in the first 5 weeks. These bribes were collected veSPA holders in exchange for more SPA emitted to their desired pool.
Epoch 6-∞: Onward and upward 🚀
The dominos have begun to fall. Epoch 1–5 showed the Arbitrum community how to leverage Demeter to assist with market awareness and liquidity in the ecosystem. This was a good learning experience but should be considered a pregame for the main event. Epoch 6 and onward is expected to be filled with new bribes and emission rewards for the Sperax community.
Key Stats
New USDs pairs : 21
Total bribe value: $55,690
SPA value distributed (SPA $0.005): $74,812
Bribe / Reward ratio: 1.343
Tokens bribed: 35,000 PLS, 10,000 BFR, 400 VELA, 1,922,100 SPA, 75,000 NFTE, 15,000 L2DAO, 600,000 ROUL
SPA distributed from Gauge: 14,962,500
Total LP deposits:
USDs: 7,047,509 ARB: 58150 GMX: 39,662 PLS: 778482 SDL: 9850462 L2DAO: 84,372,792 fxUSD: 170738 ETH: 396 NTP: 5964238 USDC: 386636 SPA: 63,065,447 gDAI: 105,767 plsSPA: 16382528 NFTE: 471275 BFR: 99145 VELA: 7250 ROUL: 1909140 SDL: 9850462
TVL all time high: $2,100,000
Key Announcement Twitter Engagement
When launching a Demeter farm or providing bribes, the Sperax marketing team will promote the activity on twitter to promote the partner. Some performance metrics of posts follow:
Gauge introduction post: 64.6K Views, 56 Retweets, 20 Quotes, 193 Likes, 6 Bookmarks
Demeter partner reward refill post: 19.8K Views, 33 Retweets, 13 Quotes, 111 Likes, 7 Bookmarks
Plutus bribe post: 25.4K Views, 34 Retweets, 7 Quotes, 115 Likes, 2 Bookmarks
BFR + VELA pool post: 35.3K Views, 27 Retweets, 6 Quotes, 135 Likes, 9 Bookmarks
BFR + VELA bribe post: 35.4K Views, 37 Retweets, 6 Quotes, 141 Likes, 6 Bookmarks
ArbiRoul bribe post: 5,898 Views, 18 Retweets, 1 Quote, 53 Likes, 1 Bookmark
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!
