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Liquidity Mining

Dynamic APR Farm

The new SPA-USDs pool on Sperax dapp launched on 13th June 2022 is a fixed emission farm with 18M SPA budget for 180days.
  1. 1.
    12M SPA is for all the liquidity providers who stake in the farm
  2. 2.
    6M SPA is exclusively for liquidity providers who lock their LP tokens
Rewards are accrued on a block by block basis. Users can view the claimable SPA rewards at any point of time after staking their LP tokens. Users can claim the SPA rewards if the claimable SPA rewards are greater than 0.

Creating Liquidity Pool tokens

We strongly recommend users provide liquidity to the UNI-V3 SPA-USDs pool via the Sperax UI. When a user provides liquidity to the SPA-USDs pool, LP (Liquidity Pool) tokens are issued to the user. Providing liquidity through Sperax UI is important, because creating an LP token using the Uniswap UI may result in LP tokens whose price ranges do not fit our liquidity mining incentive contracts. In other words, our liquidity mining contract might not accept users’ LP tokens in this case.
Once users have created LP tokens in the acceptable price range (0 USDs/SPA to 1 USDs/SPA), they can stake those LP tokens on our farm contracts via the Sperax UI. While staking, users can choose whether to lock their LP tokens or not. If a user has multiple LP tokens, they can choose to create multiple liquidity positions.

Reward Distribution

Users start accruing rewards for staking their LP tokens in the farm contracts as soon as they stake. They can view the claimable SPA tokens on the Sperax UI. The farm contract distributes a fixed number of SPA tokens per second amongst all liquidity providers in proportion to the quantity of liquidity provided by each user.
For determining the quantity of liquidity provided we use the Liquidity (L) parameter value from the Uniswap liquidity pool token. To get a better understanding of the L parameter which is called virtual liquidity please read the Uniswap v3 documentation.

Additional Rewards for Locking liquidity

Users who lock their liquidity can get rewards from an additional pool compared to those who do not lock their liquidity. That is, one reward pool is common among both lockup and non-lockup users and the additional pool is exclusive to users who lock their liquidity.
Once a user has locked their liquidity, before they can unstake their liquidity, they have to initiate a cooldown and wait for the end of the cooldown period. Cooldown period is 21 days.

Floor APR for Lockup users

Users who lock their liquidity are guaranteed a minimum APR (aka floor APR) of 10% for the first 90 days. If the APR from the farm rewards is less than 10% for the first 90 days then additional SPA tokens will be airdropped to make the APR 10%. These additional SPA tokens will be funded using our bootstrap liquidity budget in SPA tokenomics.
Example - Let’s say a user has locked liquidity worth 100 SPA tokens (based on the price of SPA at that time) when the farm launched. Assuming the floor APR is 10%, if the total SPA rewards received by the user is less than (10% x 100 x 90/365) and the user has exited their position before the end of the 90 days they will receive an airdrop such that their APR in SPA terms is equal to the floor APR.

Unstaking or Exiting the Farm

Users who haven’t locked their liquidity can unstake and exit the farm at any point of time. They can use the Sperax UI or the Uniswap UI to remove their liquidity.
In contrast, users who have locked their liquidity need to initiate a cooldown to exit the farm. The cooldown period is 21 days and is mentioned in the Farm page. During the cooldown period, the users will still earn farm rewards but will not earn the additional rewards for locking since they are in cooldown. Once the cooldown period is over, users can unstake their liquidity or choose to remain staked and continue earning rewards similar to non-lockup users.
During the cooldown period, if the user wants to lock their position again, they must wait until the end of the cooldown period to lock that liquidity position.

APR Calculation

APR displayed on the Sperax UI is only an estimate. APR doesn’t reflect the actual gains and losses for an individual position. Please do your own analysis for calculating the profitability of your liquidity positions.
APR (No Lockup) = (SPA distribution rate for all users x SPA price) / (Market Value of total liquidity staked in the farm contract) x Number of seconds in a year
APR (Lockup) = APR (No Lockup) + (SPA distribution rate for lockup users x SPA price) / (Market Value of total locked liquidity staked in the farm contract) x Number of seconds in a year

Fixed APR Farms

USDs is the first protocol to launch liquidity mining incentives on Uniswap V3. Instead of exposing users to impermanent loss and APY fluctuations, we came up with an incentive model which rewards users in SPA at a fixed APR schedule. Users will earn an APR denominated in SPA, based on the initial value of their deposits in SPA terms.
To launch USDs, deep liquidity of SPA is required so market participants are offered a fair price for SPA when using arbitrage to bring USDs back to the $1 peg. We have incentivized USDs pairs so users can use USDs as a currency without liquidity challenges.
The protocol gives Sperax token (SPA) rewards to users for providing liquidity on Uniswap V3 on Arbitrum. Along with SPA rewards, users also earn from fees generated on Uniswap V3.

List of Pools on Arbitrum Uniswap V3

We recommended users create liquidity positions by visiting our Farm page instead of directly creating positions on Uniswap V3.
Highlights:
  1. 1.
    The APR for liquidity mining is estimated, calculated, and paid in SPA
  2. 2.
    APR is predetermined and fixed in SPA terms for both lockup and no lockup participants APR in SPA is highest for the longest lockup period and lowest for the no lockup participants
  3. 3.
    The underlying value on which the APR is paid is also calculated based on the price of SPA
  4. 4.
    Each Farm contract has a limited SPA budget which when exhausted, no new participants can lock their liquidity
  5. 5.
    Participants who lock their liquidity get preference over those who do not lock up their liquidity
  6. 6.
    Participants who do not lock up their liquidity and instead choose the no lockup option have to unstake to claim their rewards
  7. 7.
    In the case when the SPA budget has been completely locked up or has been claimed, a no lockup participant will not be able to claim any rewards when they unstake their position
  8. 8.
    Participants start accruing reward immediately after staking. However, if the position stays in the farm for less than 24 hour before they unstake, they will NOT get any reward. This is because we round up time into the nearest day.
Total SPA Budget allocated towards the Farms and Budget Locked (total SPA rewards already claimed or locked up by lock up participants) are shown in the UI against all Farms.

Example:

A user chooses to provide liquidity on the USDC/USDs farm. The value of their liquidity position in USD ($) terms at the time of deposit is $1,000. Let’s say the SPA price at the time of deposit is $0.05. The initial SPA value of their deposit is equal to ($1,000/ $0.05) 20,000 SPA.
Let’s say the Fixed APR in SPA for this farm for the 30 day lockup period is 18% and the user chooses to lock up their liquidity for 30 days. At the end of the lockup period when the user unstakes their liquidity they would receive (20,000 SPA x 18% x (30/365)) 295.8904 SPA rewards.
Users can also use the Farm rewards calculator to estimate their rewards.
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On this page
Dynamic APR Farm
Creating Liquidity Pool tokens
Reward Distribution
Additional Rewards for Locking liquidity
Floor APR for Lockup users
Unstaking or Exiting the Farm
APR Calculation
Fixed APR Farms
Example: