USDs (Sperax USD)
A yield automating stablecoin on the Arbitrum network
USDs is a stablecoin which generates auto-yield natively. Currently, USDs is live on Arbitrum, the largest Layer-2 Ecosystem of Ethereum. It has achieved $20M TVL in the first 2 months since launch. 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:
- 1.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.
- 2.Layer 2 native — Cheaper transaction fees on Arbitrum make this protocol retail investor-friendly
- 3.Fully Backed Model - USDs is 100% backed by a diversified basket of whitelisted crypto assets (stablecoins)
The growth of the decentralized finance (DeFi) space has spearheaded the adoption of stablecoins. However, existing stablecoins like fiat-backed stablecoins (USDT, USDC) are centralized, CDP based stablecoins (DAI) have a difficult time scaling and algo-stablecoins (like Basis, Terra) only maintain stability during bull markets. USDs has combined the best of existing stablecoin 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. 50% of yield generated on collateral is used to pay USDs holders Auto-Yield. 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 governance and 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 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 true owners of the Sperax ecosystem.