August was the first month where all operations of the Sperax community and Core team work coincided through forum, Snapshot, and the entire Sperax Improvement Proposal playground. Iterating forwards is key to the success of any protocol and especially any DAO, and the passing of the first eleven SIPs has shown that Sperax can deliver work in a radically transparent fashion.
This month, Sperax continues to expand its impact as Sperax unrolls its new farming-as-a-service and liquidity managment protocol –Demeter– and streamlines USDs in preparation for Demeter. Read on for more exciting updates, and make sure you don’t miss us at Mainnet NYC!
The First 11 Sperax Improvement Proposals
The first 11 Sperax Improvement Proposals have passed snapshot voting with submission for technical implementation. The most notable being SIP-6 and SIP-11. SIP-6 streamlined USDs by removing SPA from the mint/redeem process, made mint fees 0%, made redeem fees 0.2% and introduced the SPA burn 2.0. This uses 25% of all protocol revenue to buy and burn SPA. SIP-11 sets the stage for Demeter launch later this month, solidifying key protocol spec for launch date.
Among the passing SIPs were a number of great developments for the Sperax community:
- Diversification of USDs collateral
- New collateral deployment to Aave & Stargate
- Extend Saddle Finance farms
- Protect collateral pool from depegging assets
- Remove USDs mint fees in order to lower minting costs
- Introduce Demeter factory farm contracts for new Arbitrum protocols
SIPs will continue to form the Sperax protocol’s future as a deep player in the Arbitrum ecosystem.
Demeter Protocol Proof of Concept with L2DAO
Demeter Protocol is the newest Sperax product that will exponentiate USDs adoption. Demeter is a farm factory contract built for DAOs to launch and manage decentralized exchange liquidity.
Demeter V1 allows users to launch Uniswap V3 style pools on Arbitrum, with concentrated liquidity through the novel farming-as-a-service protocol. Demeter incentivizes protocols to pair tokens with USDs and SPA by waiving the small fee under these conditions and adding SPA rewards to trading pairs against USDs.
Before making Demeter V1 publicly available, Sperax endeavored a proof of concept through SIP-5: a partnership with Layer2DAO to utilize Demeter for an incentivized L2DAO/USDs pool. Layer2DAO uses its Treasury to invest in L2 protocols and ecosystem plays, serving as a diversified venture fund for investors looking to gain exposure to the L2 ecosystem growth. The farm is emitting 5,555 L2DAO tokens per day and 33,333 SPA tokens per day, and the variable APR pool will be live 30 days from August 21, 2022.
L2DAO farm is the Demeter proof of concept. Once Demeter is publicly available, any protocol can utilize the farming-as-a-service protocol to spin up a Uniswap v3 farm without any coding required!
Extension of Saddle Farms
SIP-9 passed late in the month, with a vote to continue funding the USDs Saddle farm. This extension allocated 111.111K SPA per day available for rewards in the farm, with funds being supplied from the Bootstrap Liquidity budget for 30 days.
Funding of the existing Saddle farm follows on the heels of a major passing Saddle Improvement Proposal to swap 2,000,000 $SDL for 5,000,000 $SPA, which will see each protocol lock the swapped tokens for four years and become active governors in each protocol.
gm Plutons
The Sperax X Plutus partnership is primed for activation this month. PlutusDAO aims to function like Ethereum’s Convex by aggregating top Arbitrum protocols’ staked governance tokens in a liquidity blackhole. Currently, Plutus is aggregating governance power with plvGLP, plsDPX, and plsJONES as major Arbitrum players. With plsSPA, Plutus will garner governing power in the Sperax ecosystem, offering sophisticated governors for SperaxDAO while laying the foundation for bribing SPA stakers. Read more about the partnership, and check out PlutusDAO.
Arbitrum Nitro Upgrade
Arbitrum shut down its network for an upgrade to Arbitrum Nitro, which will bring faster transactions, lower fees and a better user experience for building applications. The Nitro migration took place successfully on August 31 at 2:30 PM UTC.
Catch us at Mainnet
The Sperax team will be holding down a booth at Mainnet in NYC in September. Find Alec, Subh, Joe, and Elliot to talk stablecoins, liquidity management, L2 solutions, DAOs, and snag some sweet Sperax swag.
SPArtan of the Month: @Sooper_
@Sooper_ is a young DeFi enthusiast studying economics and computer science who just started publishing breakdowns. Late in August, he published an article about Sperax on Mirror: This. Is. Sperax! The SPArtans Are Coming.
@Sooper_ believes that crypto is its own galaxy, and new cryptonauts need help finding their way around. He likes to find ways to make crypto easier for them, since everyone started from nothing. @Sooper_ believes that Sperax is a new and unique idea, and he is excited to continue educating others about the protocol.
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!
