USDs (Sperax USD)
A stablecoin yield aggregator on the Arbitrum network
USDs is a stablecoin yield aggregator which generates auto-yield natively. Currently, USDs is live on Arbitrum, the largest Layer-2 Ecosystem of Ethereum. Eventually, Sperax will build a system of interoperability so that USDs will be natively deployed to all major blockchain platforms.
The highlights of this protocol:
Auto-yield - Users holding USDs in their wallets automatically earn organic yield. No staking is required by the end user. Users do not need to spend gas calling the smart contract to claim their yield.
Layer 2 native — Cheaper transaction fees on Arbitrum make this protocol retail investor-friendly.
Fully Backed Model - USDs is 100% backed by a diversified basket of whitelisted crypto assets (stablecoins).
The rise of decentralized finance (DeFi) has led to a huge increase in the use of stablecoins—cryptocurrencies designed to keep a steady value, usually around $1.
They generally fall into three categories. Fiat-backed stablecoins like USDC, etc. are pegged to traditional currencies and backed by reserves held by centralized issuers. They’re widely used but raise concerns around transparency and control. Crypto-collateralized stablecoins like DAI are backed by on-chain assets. They aim for decentralization but can face scaling limits. Algorithmic stablecoins rely on smart contracts and supply adjustments to maintain their peg without direct collateral. They remain sensitive to market shifts and are still evolving.
Each type balances trade-offs between decentralization, stability, and scalability as the stablecoin ecosystem matures.
USDs has combined the best of existing designs by featuring a 100% backed model like the CDP stablecoins but adds the scalability benefits of fiat backed stablecoins. An on-chain, redemption-based design makes USDs highly scalable, trustless and decentralized.
USDs automates the process of earning yield on stablecoins. Yield is generated organically by sending collateral to audited decentralized finance protocols. 70% of yield generated on collateral is used to pay USDs holders auto-yield. Please refer to SIP-66 for more details.
USDs auto-yield rate is adjustable and depends on the actual yield generated by the collaterals. Any yield generated beyond the max auto-yield rate will be stored in auto-yield reserves. This novel passive income strategy does not require any action from the user. Users can just hold USDs and see wallet balance grow, auto-compounding the yield in the process.
SPA is the value accrual token of the Sperax ecosystem. SPA holders can stake SPA tokens to receive veSPA. veSPA holders are decision makers of the protocol. They will earn staking rewards and manage the protocol revenue via voting power in Sperax governance. Off-chain governance is live on Snapshot, and community (veSPA holders) can control parameters of USDs protocol, yield strategies, eligible collateral, new product features, etc. On-chain governance will be launched soon making veSPA holders the true owners of the Sperax ecosystem.
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