Last month Sperax yield farms went live on Arbitrum. Arbitrum’s TVL has grown 34.88% in the last 7 days. In this article, you will find out the main reasons why you should farm with Sperax USD.
Current DeFi market leaders have seen significant growth. On the other hand, they rely on centralized issuers and off-chain collateral. Because of that, they are vulnerable to regulatory scrutiny. It goes against DeFi’s primary principles. Sperax is seeking to tackle this problem by creating $USDs, one of the first hybrid stablecoins and the first to generate auto-yield.
$USDs is a stablecoin that combines the best features of existing stablecoins. This mechanism design yields a completely on-chain, highly scalable, trustless, and decentralized stablecoin protocol.
Check it out below. 👇 https://t.co/zW7GTyqFpq
— Arbitrum (@arbitrum) December 24, 2021
These are three reasons why you should farm with Sperax USD:
- No APR Dilution = Fixed APR
Other farms have fixed supply APR releases, which rely on the number of participants to determine total interest. Sperax farms guarantee that your APR will not decrease as the pool expands.
- Big rewards
You can earn up to 30% APR on stablecoin and up to 250% on $SPA. With stablecoin pair $USDs – $USDC APR starts at 15% add you can lock it for up to 30%. It is the highest guaranteed stablecoin APR without going cross-chain. Pair $USDs – $SPA starts at 100% and you can lock it for up to 250%.
|No lockup||7 day lockup||30 day lockup||90 day lockup||150 day lockup|
- First Uniswap V3 stablecoin yield farming
Sperax is the 1st protocol that launched yield farms on Uniswap v3. You may automatically provide concentrated liquidity to front end, enabling LPs to earn more trading fees.
The connection between $SPA and $USDs supports the elegance of $USDs tokenomics. When the $USDs deviates from the peg, the protocol provides stability by offering arbitrage possibilities. The protocol will always mint or redeem 1 $USDs for 1 dollar worth of $SPA and collateral tokens, regardless of market conditions. $SPA tokens are burned to create new $USDs, and $SPA tokens are minted whenever $USDs are redeemed.
The unique feature of $USDs is that it is an auto-yield stablecoin. Locked collateral is redeployed on safe DeFi services like Curve, and all revenue is distributed directly to $USD holders.
This feature, together with the fact that $USDs are decentralized, can make $USDs a game-changing DeFi primitive. The Sperax team is working in developing new products that take advantage of the yield-bearing nature of $USDs as well as Arbitrum’s low transaction costs. They want to revolutionize decentralized borrowing and lending.
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