Sperax Monthly Newsletter | July 2022
The advent of Sperax DAO saw passing votes for Sperax Improvement Proposals 1, 2, 3 & 4 this month. These early SIPs forge USDs collateral diversification into DAI and FRAX & VST, and turn on the yield generating machine behind USDs with deposits to Aave and Stargate.
Major infrastructure partnerships with Streetbeat and PlutusDAO lay the groundwork for the future of Sperax, bridging the gap for retail access to USDs Auto-Yield and developing layers of yield for sophisticated governance of the Sperax protocol with PlutusDAO.
Read on to see highlights from our weekly blog series.
Understanding the USDs Machine
At the core of the Sperax USD ecosystem is the USDs Collateral Pool: a diversified basket of assets managed by SPA stakers and owned by USDs holders. SperaxUSD smart contracts deploy the funds in secure DeFi strategies to fund a target Auto-Yield rate of 11% on USDs. As the collateral fund increases, the power of the SPA staker grows tremendously.
Anyone who holds SPA can stake their SPA to become a capital pool manager. When stakers do their job well, the multi-million dollar collateral pool will produce double digit yield, which is shared 50/50 between USDs holders and SPA stakers.
Read more about the unique relationship between USDs and SPA here.
SIPs Begin Passing Governance Votes
Initiating Sperax DAO
The Sperax Improvement Proposal governance process has four distinct steps.
- Snapshot Vote
- SIP Implementation
SIP Votes Thus Far
All SIP proposals gone to snapshot vote have passed overwhelmingly.
SIP-1 diversified collateral assets by swapping USDT for FRAX & VST and deploying to VST+FRAX 3 Arbitrum Curve pool to farm FXS and VESTA 4 at over 20% APR.
SIP-2 deployed USDC to Aave and whitelisted DAI for USDs minting. Currently, all DAI deposited in the collateral pool will also be deployed to Aave to earn yield.
SIP-3 redirected 20% of daily emissions from the USDs — SPA farm to a new APR USDs — USDC farm.
SIP-4 will deploy USDC to Stargate. This strategy will become the primary yield generation source for current USDC and new USDC deposits into the collateral.
Bring up your ideas for new collateral strategies to earn USDs Auto-Yield and SPA revenue split in the Sperax Forum.
Extension of USDs-USDC Stablecoin Farm
By reloading the USDC / USDs pool with a 4M SPA budget, Sperax continues to ensure deep liquidity against USDs, while offering some of the best stablecoin rewards in crypto with 30% fixed APR for a 180-day lockup.
Plutus is the Layer 2 Governance Blackhole, capturing governance power in three Arbitrum-native, industry breaking protocols: Dopex, JonesDAO, and of course, Sperax. Like Ethereum’s Convex, Plutus wraps vote escrowed governance tokens in the form of plsAssets, offering a liquid, yield stacking product that will eventually accrue gauge bribes due to the voting weight held by Plutus. The protocol currently holds nearly 50% of all Dopex governance power.
Users can deposit veSPA in exchange for plsSPA and a one-time reward of PLS. The Sperax foundation is providing 10M SPA to bootstrap the collaboration between Sperax and Plutus. These funds will be used to mint plsSPA, before being paired with 10M SPA to make the plsSPA-SPA market on Uniswap. As a gesture to the community, the foundation will not earn PLS rewards as an LP, meaning that users will garner a higher share of fee rewards.
Read more about the partnership here.
Updated Summer Roadmap
Deliverables Mentioned in Roadmap P2
Off-Chain Governance ✅
Collateral Diversification ✅
Deploy Collateral to New Strategies ✅
Automate Manual Levers 🔄
DeFi Perpetuals Partnership 🔄
Update Redemption Breakdown Data 🔄
USDs Multichain 🔄
PlutusDAO Partnership ✅
Demeter Protocol (SPA Gauge🔄 , Factory Pool Contract ✅)
Building Board 🔄
Read more about where Sperax is going in the Roadmap Update!
SPArtan Warrior of the Month: @SuperA
SuperA is a Korean living in Seoul. SuperA has known about Sperax since the ICO, and has had SPA until now, and is continuing to increase it. Also, SuperA enjoys voting as a veSPA holder by staking SPA for various periods. SuperA first learned about the Stablecoin through Terra, and started to study it little by little. SuperA fell in love with the charm of Sperax. SuperA thought maybe it could be a better stablecoin than Terra. SuperA hopes that Sperax will operate transparently and safely, and that the use of USDs will increase a lot.
Sperax USD is a stablecoin and yield automator on Arbitrum. Hold $USDs for 11% Auto-Yield. Stake $SPA to govern the collateral investment strategy.
Read more at sperax.io and join the Sperax community!