Sperax x Satoshi Club AMA Recap from the 27th of April

Hello, Satoshi clubbers Another AMA took place in Satoshi Club and we would like to introduce to you the AMA session with our friends from Sperax and our guest was . The AMA took place on the 27th of April.

The AMA session was divided into 3 parts with a total crypto reward pool of $500

In this AMA Recap, we will try to summarise the most interesting points for you.

Part 1 — introduction and questions from the Telegram&WebSite

Jonah 🏅🎹 | Satoshi Club

Hello Dear Satoshi Clubbers welcome to our AMA session with Sperax

Robocop | Satoshi Club

Hello Satoshi Club community ! We are pleased to announce today AMA with Sperax

JoeY

Thanks! Hello everyone!

Jonah 🏅🎹 | Satoshi Club

Joining us today are our guests

@AlecShaw @joey0707 and  @nandre94

Nicolas A

Hey everyone! Glad to be here

Alec Shaw

Very excited to be here

Robocop | Satoshi Club

Welcome to Satoshi Club

Jonah 🏅🎹 | Satoshi Club

Hello welcome to Satoshi club, how are you doing today?

JoeY

Im doing great. Thanks for asking!

Alec Shaw

Doing well, it’s a beatiful day here in New York City

Nicolas A

Has been a long day! But doing great excited to be here

Alec Shaw

Hope you are all doing well too

Robocop | Satoshi Club

That’s great to hear, we are also very excited to do AMA with Sperax

Jonah 🏅🎹 | Satoshi Club

We are doing great as well, I can see you are all super excited for this

So let’s start our AMA

Robocop | Satoshi Club

Let’s start our AMA with introduction

Jonah 🏅🎹 | Satoshi Club

Can you please Introduce yourselves to us, your roles in Sperax, how you got into crypto and how Sperax started?

Alec Shaw

I am Alec, I am the Partner of Business Development here at Sperax. I help secure partnerships, exchange listings and collaborations with other defi protocols!

I got into crypto in 2015 when I started the Blockchain Lab at Marquette University when I was a student. I was first a trading club then turned into a consulting firm, run by University students.

Nicolas A

My name is Nicolas. I had a background in academic research. I was a research fellow with a focus in financial macroeconomics at LSE and Princeton. Sperax, at the moment, is centered around USDs and the broader adoption of decentralized stablecoins! Since I led the stablecoin design, I think I can better address it! As a side piece of information, we also have our own layer 1 infra on testnet, but since this is not the current focus of the project, I will limit my answer to the Sperax/ USDs relationship!

I was one of the early team members and a huge supporter of Terra (I even lived in Seoul for a year to work with the team). I was fascinated by the elegant design of algo stablecoins and wanted to preserve the scalability and economic benefits they offer. At the same time, though, algo stablecoins tend to suffer from reflexivity. The stablecoin is backed only by the governance token in a purely algorithmic system. However, the governance token is valuable only to the extent the system continues to operate and captures future profits. If heavy redemptions affect investors’ belief in the system, the stablecoin will suffer, which will cause even more redemptions, creating a death spiral. The case of Iron/Titan was an example of that and the total failure of Basis Cash. This risk of purely endogenous collateral is something that even Terra has recognized, hence introducing a BTC reserve fund. Sperax design introduces that hybrid model explicitly in its design to minimize the probability of a belief-driven crisis while also utilizing that excess capital to generate yield for holders of the stablecoin and incentivize adoption!

JoeY

Hey everyone, I am Joe. I am the Partner of Tech Coordination. I coordinates our engineering team with other teams like product team, econ team, marketing&BD team, etc. Glad to be here today.

Jonah 🏅🎹 | Satoshi Club

That’s Impressive, makes we wished I started a company as well in the University

Robocop | Satoshi Club

All of you have great background and experience , can you introduce to us what is Sperax?

Jonah 🏅🎹 | Satoshi Club

You all have very impressive backgrounds

Alec Shaw

Sperax is the open-source development team focused on building software products on the Sperax protocol. With the Sperax token ($SPA) at its core, Sperax has built the first-ever auto-yield stablecoin, $USDs!

We started this protocol becuase we felt that crypto was still quite complicated for even experienced crypto/blockchain users.

So the Sperax team set out to make defi accessable by creating super user friendly defi products. Our fist being USDs which automates stablecoin investing strategies so without having to do ANY staking or claiming, users can capture stablecoin yields

Alec Shaw

We are here to take the complexity out of crypto without having to give up custody of your tokens

Robocop | Satoshi Club

How big are Sperax team ?

Jonah 🏅🎹 | Satoshi Club

Sounds so interesting

Alec Shaw

We are at about 20 team members now! The core departments consist of engineering, research and business development.

We are passionate about building an amazing product before we build out the marketing team. So as of now, most of our resources go to engineering and research to design and build the product

As we scale, we envision hiring another 10 marketing/business roles in the coming months

Jonah 🏅🎹 | Satoshi Club

A huge team I must say..

Nicolas A

also actively hiring in the econ research team in case anyone is interested

JoeY

also smart contract dev and AWS engineer

Robocop | Satoshi Club

Great, can you pls share a link so maybe one of Satoshi Clubber can try to join ?

Nicolas A

https://jobs.lever.co/sperax/

Jonah 🏅🎹 | Satoshi Club

Awesome… Interestingly I’ve sent a couple of applications to Sperax before (2) Thank you for sharing

Robocop | Satoshi Club

Thank you

Jonah 🏅🎹 | Satoshi Club

Thank you for your answers guys

Robocop | Satoshi Club

Thank you for the great introduction guys !

Now we have collected 6 questions for part 1 from Satoshi Club community,

ready to proceed?

Nicolas A

for sure

Nicolas A

Thats going to be a long answer. I will try explaining the stability mechanism together with the yield generating process

USDs is a decentralized hybrid yield-bearing stablecoin. Hybrid means USDs is collateralized: explicitly by external cryptocurrencies (USDC, ETH, and BTC) and implicitly by the USDs protocol, an algorithmic strategy that allows users to burn and mint SPA to support the collateral, and peg, as needed. The USDs hybrid model will favor algorithmic stabilization and scalability during a bull market while promoting explicit collateralization and robustness during a bear market.

Yield Bearing Stablecoin

USDs is the first decentralized stablecoin that will generate passive income for its users just by holding it. There is no minimum amount and users will be able to earn passive income just by holding USDs on their wallets (no staking, or gas expenditures required). USDs holders receive passive income by leveraging DeFi primitives. In the current implementation, APY is generated by automatically reinvesting USDs collateral on Curve. USDs effectively pulls out all the collateral and generates yield by being one of the largest stablecoin liquidity providers on Arbitrum. With the yield generated we buy back USDs from the open market and distribute it to ALL USDs holders. This allows users, to harvest the yield by elliminating any knowledge and capital requirements that are usually present. In the future, we plan to integrate more DeFi protocols such as Aave, Anchor, Compound, Yearn Finance, etc. USDs holders will receive a diversified yield source from multiple chains and multiple platforms just by holding their coins.

How does USDs keep its peg?

Arbitrage Price Discovery

If demand for USDs increases over time, the mechanism will lead to SPA deflation. Conversely, the mechanism will defend the peg in situations of low demand at the cost of SPA inflation. This is how it works.

If USDs trade on exchanges at above $1, arbitrageurs will send SPA and eligible collateral from exchanges, swap it for USDs on Sperax protocol, and sell it, receiving as profit the peg difference.

If USDs trade below the peg on exchanges, the protocol will still allow people to trade USDs for 1$. In this scenario, arbitrageurs will buy USDs from exchanges at a discount, send it to the protocol, receive 1$ (denominated in locked collateral and newly minted SPA), and sell it–pocketing the peg difference. The above process will keep happening until arbitrageurs bring the price of USDs back to one dollar.

The above mechanism ensures that any deviation from the peg will be short-lived while ensuring adequate liquidity based on profit-maximizing incentives. This mechanism is well understood and was first implemented by Terra.

The dynamic transition between algorithmic and collateralized mechanism

One of the key innovations of the Sperax protocol is the possibility of determining the fraction of the money supply that is algorithmically determined versus the collateralized fraction. The algorithm will favor algorithmic stabilization when USDs trade close to the peg and as USDs mature as an asset. Sperax started with a 95% collateralization ratio at the genesis and adjusted based on market conditions. During favorable market conditions, we will rely more on algorithmic components, while in unfavorable market conditions, we will rely more on other cryptocurrencies. This mechanism makes USDs resemble stablecoins like DAI more closely during bear markets while keeping the scalability and token-burning benefits of stablecoins like Terra during bull markets.

Jonah 🏅🎹 | Satoshi Club

Quite a long one… let’s read

Robocop | Satoshi Club

Oh Wow ! I believe @TreBienz really satisfied with the answer

Jonah 🏅🎹 | Satoshi Club

This is a well detailed response, thank you for your Answer

So at the moment what is your collaterization ratio?

Robocop | Satoshi Club

Yes, it’s true, thank you for the detailed answer 

JoeY

It is about 91% collateral. You can check it here: https://app.sperax.io/mint

Jonah 🏅🎹 | Satoshi Club

Thank you for your answer

Robocop | Satoshi Club

Are you ready to proceed to 2nd question?

Nicolas A

the rest is collateralized implicitly by SPA. To mint or redeem USDs the protocol requires 1$ worth of crypto

JoeY

good catch!

sure

Robocop | Satoshi Club

Q2 From Telegram User @MudaraSilva

Allocations and utilities of your platform token $SPA, are clear to me. However, I saw you have other two forms of $SPA, $wSPA and $veSPA. Please explain about the utilities of these two tokens. Although I read that $veSPA balance will decrease overtime, I could not understand how does it happen. Moreover, how these tokens are interconnnected? Can we purchase $SPA, $wSPA or $veSPA as we wish or is it a must to buy your main token, $SPA first?

JoeY

Haha this is a good question. Let me break it down

$SPA is Sperax’s utility token.  You need $SPA to mint USDs, to participate in Staking and Governance, etc. wSPA is an intermediate token used to bridge $SPA between Ethereum and Arbitrum-One.

$veSPA is the governance token. It is non-transferrable. Similar to veCRV, you can use veSPA to share protocol earnings, vote in governance. veSPA currently has over 700% APY. check it here: https://app.sperax.io/stake

@nandre94 could you add more to my answer?

Jonah 🏅🎹 | Satoshi Club

Btw Do these three tokens all have a uniform supply?

Nicolas A

Yes veSPA is non transferable. This is by design since we believe that sharing protocol revenue and participating in governance should come at cost of sacrificing liquidity. wSPA is just a wrapped version to move SPA across chains so it has no active liquidity. SPA is core of all these tokens. It exists on Ethereum and Arbitrum.

Here are the token addresses: https://docs.sperax.io/faq/smart-contract-addresses

Robocop | Satoshi Club

Can you please provide us with Tokenomics from your token ?

Nicolas A

wSPA and SPA are technically the same thing. SPA temporarily get transformed to wSPA to move them cross chains. However as veSPA supply grows, more and more SPA are staked and therefore removed from the circulating supply!

The whitepaper outlines the mechanics of USDs https://github.com/Sperax/USDs-Whitepaper/blob/main/USDs_Whitepaper.pdf

Jonah 🏅🎹 | Satoshi Club

Thank you for your great answers

Robocop | Satoshi Club

Thank you for sharing this

Jonah 🏅🎹 | Satoshi Club

Ready to proceed to the next question now?

Robocop | Satoshi Club

Do you want to add something or we can go to next question?

JoeY

Tokenomics on $SPA:

https://medium.com/sperax/multi-sig-is-live-updated-tokenomics-887f4e68214b

sure we would love to

btw, since USDs minting requires burning SPA, the more USDs circulating in the market, the more $SPA being burnt!

Robocop | Satoshi Club

Thank you for the answer

Robocop | Satoshi Club

Q3 From Telegram User @GracieEne

I noted that you would like to introduce a DAO governance mechanism for users to participate and vote on major decisions including but not limited to collateral type, swap fee parameters, and withdrawal lock-up period. Can you brief us on how your DAO governance mechanism will operate? How can users participate in governance in your DAOs? Do they have to stake to be able to participate? How will governance rights be distributed? For a proposal to be implemented, it has to pass through three stages, initiating stage, voting stage and counting stage. Can you elaborate more on each of the three stages and what they entail?

Jonah 🏅🎹 | Satoshi Club

This is an attractive model for $SPA

JoeY

thanks @Jonahapagu . I can take Q3

Yes. We care deeply about decentralization and transparency. According to our plan for SperaxDAO, it will consist of two phases. The first phase would center around Snapshot. We will come up with a Snapshot strategy that centers around veSPA. Basically, there will be a threthold of veSPA balance. Anyone holding veSPA above that threshold can make a proposal. Of course, you vote for or against with your veSPA balance.

Since veSPA is on both Ethereum and Arbitrum-one, we would love to include people from both communities to participate in our DAO

Jonah 🏅🎹 | Satoshi Club

Has this threshold been defined yet?

JoeY

The second phase is 100% on-chain DAO. We would love to fork Compound’s Bravos DAO. So any proposal will go through the following process: 1. propose; 2. waiting period for public examination; 3. voting; 4. timelock before implementing; 5. implementing automatically on-chain

Nicolas A

The governance module is not live yet. But it will be something low, just for the sake of preventing spam attacks

Robocop | Satoshi Club

When will SperaxDAO fully being implement? also can you please share the roadmap from Sperax?

JoeY

Since we just launched veSPA, we would love to see how many veSPA would be minted and how they would be distributed. Based on these key stats, we can come up with the best number to ensure true decentralization

Jonah 🏅🎹 | Satoshi Club

This is understandable

JoeY

We will work on SperaxDAO after we launch USDs Bond program. @AlecShaw can share more details on our roadmap.

Alec Shaw

In the 2022 roadmap, Sperax’s first major milestone was to expand the token ecosystem by introducing the veSPA staking protocol, modeled on Curve Finance’s veCRV. This went super well and features an 700% APY for users who locked SPA for 4 years. (Q1)

New incentives & rewards will be allocated to those who participate in minting and providing USDs liquidity, including traditional yield farming rewards (like our saddle. Exchange pool paying 50% on stables from SPA and SDL) plus new models like the internet bond allowing users to get a discount when minting USDs. (Q2)

VeSPA is the foundation for SperaxUSD as we go cross-chain to major L1 ecosystems like Avalanche, Ethereum, Polygon, Fantom, and more. (Q3)

As we expand the cross-chain, we will replicate the incentive programs with all partner chains.

This is all in addition to basic infrastructures like Data Dashboards, Collateral Diversification, and trading pairs in Arbitrum, so USDs can easily swap for your favorite cryptos. We are working with partners to build a savings product like Anchor for users to earn passive income on their stablecoins with fiat on-ramps.

Robocop | Satoshi Club

Thank you for sharing Sperax roadmap, let’s continue to 4th question

Robocop | Satoshi Club

Q4 From Telegram user @Rozielyna

So SPA holders can stake SPA tokens on either Arbitrum or Ethereum and receive veSPA tokens which are non transferable. Can you please highlight more on the staking protocol on Arbitrum and Ethereum? What is the Difference between staking on Arbitrum and Ethereum? What is the Minimum and Maximum time and amount holders can stake on? You mentioned that voting power will depend on users VeSPA balance, what is the Minimum veSPA balance that allows for Voting? How can a holder increase their veSPA balance? What are the Rewards / incentives for staying $SPA token?

Nicolas A

veSPA is the governance model of Sperax. At the moment, it can be accessed from Arbitrum and Ethereum and last week’s yield was a bit over 700% APY the 4-year lockup. APY is identical across both chains, with the only difference being the gas fees. ve model is a popular governance model that protocols like Curve, Frax and Anchor have chosen. Effectively the model asks users to temporarily lock their SPA in return for veSPA. The longer someone locks their SPA, the more veSPA they will receive. veSPA increases linearly the further away the expiry date is. Locking 1 SPA for 4 years, will give the same rewards as locking 4 SPA for 1 year. There is no minimum balance. The minimum lockup period is 7 days and the maximum period is 4 years. veSPA will be used:

1) To vote or propose governance proposals. People will be able to choose collateral that will be used to back USDs, suggest changes in the investment strategies of the collateral, as well as choose different yield generating strategies.

2) veSPA holders will get all the minting and redeeming fees associated with USDs proportional to their veSPA holdings.

3) veSPA holders will get 50% of the yield generated from the collateral generated by USDs (the number is subject to change by future governance decisions) proportional to their veSPA holdings.

Effectively veSPA will truly decentralize the Sperax model, generate a steady source of passive income and directly link the growth of the Sperax stablecoin ecosystem to the value of SPA.

As the protocol grows, the higher and higher share of the veSPA rewards will be given because of USDs revenue (fees and 50% of the yield on TVL). All rewards are denominated in SPA terms. This means that every week we use all the revenue generated from USDs to buyback spa from the open market and reward the stakers. As USDs grow, so will the buybacks and the staking APY! Effectively staking SPA will allow users to take a long position on USDs adoption! A risky bet with asymmetric upside, in my opinion!

Jonah 🏅🎹 | Satoshi Club

Btw 700% is an impressive APY will you be able to sustain such high APY?

Nicolas A

Staking rate is still low. I expect long term apy to be a bit lower. However as USDs tvl increases, the more SPA buybacks we will be able to conduct for stakers.  So if USDs starts growing, this will be a significant driver of organic non inflation driven staking apy

Robocop | Satoshi Club

Thank you for the detail answer

Jonah 🏅🎹 | Satoshi Club

Awesome.. this makes a lot of sense

Ready now for the next question??

Nicolas A

also just to make clear . 700% is not the apy everyone gets. only people who lock for 4 years receive that high number

Robocop | Satoshi Club

Q5 From Telegram User @iceVermithraxx

For Algorithm Stabilization, a dual token model is used with the SPA supply absorbing the price Volatility of USDs and for minting USDs, the protocol collects eligible crypto assets and SPA tokens and these SPA tokens are burnt. Can you explain more on how your dual token model will help in absorbing the Price Volatility of USDs token? For minting, USDs, protocol collects eligible crypto assets and SPA token, can you share some of these eligible crypto Assets which will be required for minting USDs? Since the SPA tokens get Burnt, can you briefly on how the elastic schedule of the SPA token and its effect on the  USDs token?

Jonah 🏅🎹 | Satoshi Club

Thanks for clarifying

Nicolas A

Stability is achieved by offering arbitrage opportunities whenever USDs deviates from a dollar. Effectively the volatility in USDs demand is partially absorbed by SPA supply.

If demand for USDs increases over time, the mechanism will lead to SPA deflation. If USDs trade on exchanges at above $1, arbitrageurs will send SPA and eligible collateral from exchanges, swap it for USDs on Sperax protocol, and sell it, receiving as profit the peg difference.

Conversely, the mechanism will defend the peg in situations of low demand at the cost of SPA inflation. This is how it works. If USDs trade below the peg on exchanges, the protocol will still allow people to trade USDs for 1$. In this scenario, arbitrageurs will buy USDs from exchanges at a discount, send it to the protocol, receive 1$ (denominated in locked collateral and newly minted SPA), and sell it–pocketing the peg difference. The above process will keep happening until arbitrageurs bring the price of USDs back to one dollar.

The above mechanism ensures that any deviation from the peg will be short-lived while ensuring adequate liquidity based on profit-maximizing incentives.

This mechanism is well understood and was first implemented by Terra.

The main implication is that as USDs demand grows, SPA will become more and more scarce.

The existence of collateral adds an additional layer of stability, and reduces the reflexivity between SPA and USDs. Effectively it creates a price floor and minimises the probability of a bank run. At the moment we only accept USDC and USDT as collateral, but we plan to add other stablecoins like Frax, UST, DAI together with more volatile collateral like ETH. SPA stakers will have full autonomy in determining whitelisted collateral assets together with collateral deployment strategies.

Jonah 🏅🎹 | Satoshi Club

I believe this satisfactorily answers the question

Thank you for your answers, I don’t have an extra for this

Robocop | Satoshi Club

By the way, do you already do audit for smart contract ? can you please share it here?

JoeY

yes we do. Our contracts are audited by Slowmist, Certik and Peckshield

we published all audit reports here: https://github.com/Sperax/Audit_Reports

Jonah 🏅🎹 | Satoshi Club

Awesome thanks for sharing this

Robocop | Satoshi Club

Impressive ! Thank you for sharing this

JoeY

np bro

Robocop | Satoshi Club

Are you ready to continue for the last question for part 1?

Alec Shaw

yep

Robocop | Satoshi Club

Q6 From Telegram User @jameslekan664

On your medium, I saw an announcement about Sperax’s partnership with Transak. I know that Transak allows an integration that enables people to buy crypto currencies with their debit cards. This partnership is of a good course, I must say. Does this partnership with Transak mean that there will be provision for a fiat on-ramp where users can buy USDs and SPA with local payment methods and probably apple pay? Will Transak’s on-ramp be integrated directly to the Sperax dApp? In accessing the services offered by Transak, what charged will users pay?

Alec Shaw

I’ll take this one

Thank you for reading our medium articles and seeing the Trasnak partnership! We are super excited to be features as the first fiat-onramp project with direct to Arbitrum deposits for stable coins.

The fiat onramp is to make accessing USDs as easy as possible.

USDs will become the savings account of the meta verse thanks to the 11% native interest. This will be the savings account for gameFi and defi and NFTs alike. But in order to make this a reality, USDs must be stable, high yielding and most importantly: easy to access

This is where Transak comes into play.

Now, users all over the world simply have to connect their bank account or type in their credit/debit card and BOOM they can get USDs deposited directly into their crypto wallet of choice and begin earning 11% passive income.

We believe this will onboard millions of new users into defi and into the Sperax ecosystem.

Jonah 🏅🎹 | Satoshi Club

What other special partnerships do you have as well?

Alec Shaw

I’ll mention this quick. I can’t give the names until we do the official announcement but we are working on two strategic plays right now that will be huge.

First is the decentralized stablecoin play. We are working with tier 1 decentralized stablecoin partners to begin the process of switching away from centralized collateral. This will unlock new yield farms, higher auto-yield and collaboration with the biggest defi communities out there.

This partner will also be working with us to deploy new pools with juicy rewards and even work on a new bond

Jonah 🏅🎹 | Satoshi Club

This is exciting to look forward to

Alec Shaw

Second we have a vertical integration. By that I mean we are going off chain and have solidifed partnerships with groups that serve traditional investors and financial participants

Robocop | Satoshi Club

Don’t forget to share the update with us

Alec Shaw

So we will be featured on a super popular mobile investing app, allowing users to harness the power of stablecoins! This will onboard web2 users and non-crypto investors into the defi/Sperax ecosystem without having to have crypto expertise

Alec Shaw

This is the first of many web2 partners that will be interrating USDs for its auto-yield features

mobile investing apps, savings apps, neobanks etc

Robocop | Satoshi Club

Thank you for the detail answer! it has been an amazing time in this first part of the AMA

Robocop | Satoshi Club

Now is time to proceed with the second part, before we open the chat, can you please share the important link or social media

from Sperax Project?

Alec Shaw

twitter.com/speraxUSD

https://medium.com/sperax

https://t.me/SperaxUSD

Robocop | Satoshi Club

Thank you

Jonah 🏅🎹 | Satoshi Club

So are you ready for the rain of questions ?

Robocop | Satoshi Club

We will open chat for 120 second, after that please choose 10 best question and answer it

Alec Shaw

Yes, we pick 5?

Alec Shaw

I see, 10

Let’s do it

Jonah 🏅🎹 | Satoshi Club

Chat will be opened now

Part 2 — live questions from the Telegram community

Q1 from Telegram user @tonmoy8595

Too many projects promise magic but never release any working product or prove any revenue, Within a short/long time of release? Is your project also like this? If not can u tell us, What makes your project different from other projects??

Alec Shaw

We try not to talk much about products before they come out. So USDs is already live and ALREADY generating huge revenues.

The protocol generates income two ways:

The protocol owns over $23M worth of collateral which earns yield, half of this yield is given to stakers as revenue.

Second the protocol colelcts swap fees as the peg is maintained by arbitrage traders. This fee is given to stakers as revenue.

Q2 from Telegram user @Shiva_shivi

I see that uses who will hold USDs in their wallet,
They will receive passive income on it,
Will all holders received or there is any Specific amount that users need to hold for it?

Alec Shaw

This is the best part of USDs….

Users don’t have to stake or claim or anything! The USDs stays in your wallet 100% of the time. Not your keys not your crypto

So without having to stake (gas fee) and claim (gas fee) users just hold and earn passive income

Q3 from Telegram user @Crypto_84

How does “Dynamic Reliance” on crypto collaterals & Algorithm help in providing the stability and scalability ?
Can you please explain it more?

Nicolas A

USDs target collateral is dynamic. In other words the protocol is using an on-chain algorithm to determine the fraction of the money supply that is algorithmically determined versus the collateralized fraction. The algorithm will favor algorithmic stabilization when USDs trade close to the peg and as USDs mature as an asset. During favorable market conditions, we will rely more on algorithmic component. This is because that’s exactly when scalability matters the most. In unfavorable market conditions, we will rely more on other cryptocurrency collateral. This is because during a bear market is when robustness matters the most. This mechanism makes USDs resemble scalability benefits of stablecoins like DAI during bear markets while keeping the scalability and token-burning benefits of stablecoins like Terra during bull markets.

Q4 from Telegram user @BrayantGonzalez

I read that Sperax, in addition to having an algorithmic stablecoin, will also have a set of DeFi applications, so could you tell us what those DeFi applications and products will be that we will find in Sperax? and in all of them we will have to use your stable currency compulsorily?

Nicolas A

I read that Sperax, in addition to having an algorithmic stablecoin, will also have a set of DeFi applications, so could you tell us what those DeFi applications and products will be that we will find in Sperax? and in all of them we will have to use your stable currency compulsorily?

Q5 from Telegram user @messilolz

What is Arbitrum support? How were you able to list SPA on Kucoin?

Alec Shaw

Thanks for bringing up the Kucoin Arbitrum support!

This is super important becuase we are the first and only project on Arbitrum that has the ability to be withdrawn/deposited DIRECTLY to Arbitrum from a centralized exchange.

Q6 from Telegram user @gollumsgems

How can community participate on your project ? Is there any governance features or DAO?? WILL you listen community suggestion , feedback and consider ideas time to time??

JoeY

Yes. Community suggestion is extremely valuable for us. The best way to participate in Sperax project is to become a part of it! Get $SPA, mint USDs, stake for veSPA, and share protocol earnings! For communication, we mainly use Discord and Twitter. Also, we post important messages on our Dapp page.

Sperax Discord: https://discord.gg/MXTtQEWH
Sperax Twitter: https://twitter.com/SperaxUSD?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor
Sperax Dapp: https://app.sperax.io/

Q7 from Telegram user @Ravan_since_1996

Is there any token burn strategy that you follow if yes, please let us know how much token you have burned so far and what are your future plans regarding it?

Alec Shaw

Yes we have a token burn system that allows for the price of SPA to go up when USDs gains in popularity. If the circulating supply of USDs goes UP, the circulatng supply of SPA goes DOWN.

This far we have burned over 10M SPA tokens from minting USDs! That is over 1% of the circulating supply.

Details can be found here https://medium.com/sperax/usds-and-spa-token-relationship-9836bacfd3de

Q8 from Telegram user @surendra040

veSPA has over 700% apy who locks for 4 years period. What is the minimum staking I can do ?also what’s the APY below 4 years?

JoeY

The minimum lockup period is just 7 days! As for APY for different lockup periods, our front-end engineers are working on it and will publish it very soon. In principle, if you stake 100 $SPA for 4 years, it is equivalent to you 400 $SPA for 1 year. The staking rate is still low right now. So you would have a high chance of enjoying 700% APY for a period of time if you choose to stake for 4 years

Q9 from Telegram user @krish_crypto22

Auto Yield Features is Provided by many Exchange lile Binance as well,
In Your Platform,
How can user Claim their Yield?

JoeY

You don’t need to do anything! You simply hold USDs in your wallet and see the balance grow!

Q10 from Telegram user @Robotliker1

Do you have any story or greater achievements carried out till now? what are your important milestones ahead and how will you work on it in future?

Alec Shaw

Since $USDs launch this January, we have organically grown the $USDs protocol at a rate of ~100%/week since the launch of our liquidity pools on Jan 14th. $USDs circulating supply has reached $25M. TVL generating yield on Curve.fi has increased to $23 Million, collecting 10% of all CRV emissions on Arbitrum. During this same period, the protocol market cap has grown 2.3x, growing from $60,000,000 to $141,000,000.

$USDs becomes the Deepest stablecoin liquidity on Arbitrum Uniswap
$USDs and $SPA ranked #4 and #5 tokens on Abitrum Uniswap by TVL
22 million $USDs circulating
Attracted $30M of deposits in Saddle USDs farm
$5M Swaps on less <1% slippage on Uniswap

$USDs becomes the leading player in Curve war Arbitrum
20 million TVL/protocol owned value deployed into Curve
$USDs receives 10% of all CRV emissions on Arbitrum

Part 3 – Quiz Results

As usual, for the third part, Satoshi Club Team asked the chat 4 questions about the crypto project. A link to a Quiz form was sent into the chat.

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