Sperax is a DeFi protocol operating on the Arbitrum network that mints a 100% collateralized stablecoin Sperax USD (USDs). The USDs stablecoin is backed by on-chain collateral and offers an effective yield-generating strategy for the protocol’s users. The stablecoin is the premier trading pair on the Arbitrum network.
The stablecoin market consists of three kinds: centralized fiat-backed ones like USDT and USDC, decentralized CDP-backed stablecoins like DAI, and algorithmic stablecoins like Basis and USTC, each of which come with their own set of challenges and drawbacks. However, the fully on-chain USDs take the best of these stablecoins to offer decentralization of CDP coins and scalability of fiat-backed coins.
Sperax also automates yield earning on stablecoins, as it generates yield organically by sending collateral to audited DeFi protocols. 50% of the yield generated in this manner is shared with USDs holders through the protocol’s Auto-Yield feature.
SPA is the utility token of the Sperax ecosystem and is used for governance and accruing value. Token holders can stake SPA on the Sperax protocol to receive veSPA, participate in the decentralized governance mechanism, and earn staking rewards.
Sperax protocol users can mint USDs stablecoin by supplying eligible collateral with zero fees. Acceptable collateral as of March 2023 includes USDC, DAI, FRAX, and VST. The platform may add support for more tokens to function as collateral in the future.
The fungible USDs tokens can be redeemed against the collateral on the protocol in the same manner, with zero fees. The USDs stablecoin works as an IOU on the pooled collateral.
A collateral token of less than 1 dollar will be treated with its actual market price. On the other hand, any collateral token whose value exceeds 1 dollar will be treated as 1 dollar. This ensures that Sperax maintains USDs as a fully collateralized or overcollateralized stablecoin.
Sperax lets users redeem 1 USDs for 1 US dollar after deducting redemption fees of 0.2%. The platform collects a portion of USDs redeemed as redemption fees, generating revenue for the Sperax protocol.
The Sperax project was launched in 2020, with its team initially working on developing a Layer-1 blockchain. The work later pivoted to building the industry’s first auto-yield bearing stablecoin SperaxUSD (USDs).
USDs released on Abritrum in December 2021, shunning Layer-1 networks for the network’s higher efficiency and scalability. The Sperax DAO launched the Demeter liquidity management solution in addition to the SperaxUSD stablecoin on Arbitrum in 2022.
Through 2022, Sperax introduced its official staking program and liquid staking for SPA tokens. The Sperax DAO was established in July 2022 for off-chain governance by the protocol’s community.
In July 2022, Sperax announced a partnership with Plutus to maximize locking for governance power within its ecosystem. Other partnerships followed, including one with Saddle Finance in September 2022, FraxLend, and one with Gains Network in February 2023.
Sperax (SPA) is listed on leading cryptocurrency exchanges and DEXs, including KuCoin. Buying SPA token on KuCoin is simple. Here’s a guide on how to buy Sperax safely if you would like to get started.
Sperax is an interesting crypto asset to your portfolio, especially if you wish to diversify into Layer-2 and DeFi tokens in the market. As the utility token of a DeFi protocol on Ethereum’s leading Layer-2 network, the value of SPA token could rise as Sperax adds support for more collateral tokens, expands to new blockchain ecosystems, or implements new features that improve the protocol’s overall liquidity and efficiency.
The price of Sperax token could increase as more users sign up for utilizing USDs for yield generation and other DeFi activities on the network. This could increase investor confidence in the Sperax protocol and boost the SPA price statistics.
The price of SPA crypto could also increase amid an improvement in the market sentiment toward digital assets. A bullish mood in the crypto market increases the risk appetite among investors, driving buying activity that can support the Sperax value.
While offering an accurate SPA coin price prediction is impossible, several fundamentals impact the price action and volatility in the Sperax token. These include:
An uptick in the number of users on the Sperax protocol could increase the demand for and drive up the value of SPA token. This could also be driven by Sperax announcing support for more tokens as collateral or partnering with more DeFi protocols in the Arbitrum network for yield-generation activities.
Whenever the developers behind the project add new features that make Sperax and SperaxUSD more attractive, the value of SPA crypto receives a boost. The announcement of new investments, integrations, or expansion to support more blockchain networks beyond Arbitrum could also increase the price of Sperax coin in the market.
A favorable outlook among investors towards cryptocurrencies, especially the decentralized finance sector, could also be a key driver of growth in SPA value. Higher DeFi activity can spur the demand for the USDs stablecoin, and the resulting uptick in on-chain activity can increase the price of Sperax token. However, a bearish or risk-averse sentiment can lead to sell-offs that weaken the SPA coin price.
SPA is the utility token of the Sperax ecosystem and has the following purposes:
SPA token holders can become members of the Sperax DAO and participate in the protocol’s off-chain governance. They can submit and vote on others’ proposals based on their voting power, contributing their thoughts on new partnerships and yield opportunities.
You can stake SPA on Ethereum or Arbitrum to receive veSPA tokens that give you voting power. In addition to the governance, staking SPA lets you earn staking rewards generated from yield shares and fees by Sperax.
Trade Sperax against other cryptocurrencies to profit from changing market conditions and volatility. You can buy or sell $SPA against other digital assets or hold it long-term if you believe in the future potential of the Sperax protocol. Review the current price of Sperax coin, SPA current market cap, current circulating supply, and 24-hour trading volume, and perform technical, sentiment, and fundamental analysis on the SPA to USD price chart before trading Sperax in the market.
You can earn using the Sperax protocol in the following ways:
Buy or mint USDs using the protocol and hold USDs in your self-custody crypto wallet to earn auto-yields of up to 11% APY through Sperax. This is one of the most convenient and lucrative ways to earn on Sperax.
Provide liquidity in designated pools, stake your LP tokens on Uniswap v3 and Saddle farms supported by Sperax. Check this link to find available farms to earn rewards through the Sperax protocol.
Staking SPA lets you earn protocol fees, a share of auto-yield from USDs, and other staking rewards. Through this option, you can also enjoy voting power on the Sperax protocol’s off-chain governance mechanism.
Staking $SPA on Sperax lets you earn staking rewards, participate in governance, and enjoy returns from the protocol’s auto-yield feature. Here’s how to stake SPA on Sperax: