Partnership with Sperax.io: Bridging Interest Bearing Stablecoin To Harmony

## Name of Project / DAO / Company
Project: http://sperax.io/USDs

## Application type
[Ports, Partnership]

## Proposal overview
Sperax USD is a hybrid stablecoin that is mostly backed by explicit, protocol-owned collateral, and partially by algorithm. Sperax USD uses ETF/Tether Foundation style arbitrage to ensure a tight peg at $1. This keeps the price of USDs in a tight band around $1.00, offering users the stability benefits of explicit collateral stablecoins with the scalability benefit of algorithmic stablecoins.

Collateral in the protocol is deposited in Aave markets to earn returns. We believe that the launch of our liquidity incentives for USDs will cause at least $15M in liquidity to be deposited into Aave.

About the LM campaign
Our mobile app, Sperax Play, we are onboarding our 600k users into our stablecoin and we don’t want to mitigate slippage. Customers will be transferring from centralized exchanges with size, and want to easily transfer from their stablecoin or major asset to USDs.

To ensure there is adequate liquidity, we will be allocating 250M SPA from the bootstrapping liquidity budget to compensate early market makers for their generous contribution to the Sperax ecosystem.

Once adequate liquidity is reached on Arbitrum, Sperax Foundation and Sperax DAO will allocate SPA to trading pairs on partner layer 1 ecosystems.

Positioning within Harmony Ecosystem
Once a liquid market is established on Hamony’s DEX, achieved through liquidity incentives, dApp developers on Harmony will have a few tool at their disposal: a high interest savings account that acts as both a store of value and a medium of exchange.

Sperax Play mobile front end app, can act as a conduit for Southeast Asian and US community to access Harmony products. The Sperax community is very active and looking for venues ways to interact with the crypto and defi ecosystem in a fun, user friendly way. As we expand Sperax Play’s financial service offerings, Sperax outsource financial services to Harmony dApps, expanding optionality for Sperax users. We will list the rates offered, with a “powered by Haromy X” logo next to it.

Project History
The project launched and funded in 2019. The project is currently using snapshot voting for governance. The project is working with Compound governance contracts to begin the transition to a fully functional, decentralized DAO.

Sperax Play Key User Metrics
Week of September 20
total users increased by 8%↑ to 611.13k users
sessions increased by 14%↑ to 916.02k sessions
page views increased by 15%↑ to 2.89m page views
new user count increased by 19%↑ to 17.2k new users

Community Metrics
Twitter: 36k Followers
Telegram: 13,000 Member Community
Discord: 3,000
Sperax USD Twitter: 4,000+ (1 month old)
Email Newsletter: 56,0000

## Proposal ask
Harmony to match a liquidity incentive budget provided by Sperax.io. Our proposal is to match 25M SPA worth, at an exchange rate of $0.05 this is $1,375,000

At todays exchange rate of $0.15, Harmony would provide ~9,100,000 ONE tokens for the incentive budget.

## Metrics for success
TVL of the stablecoin-USDs pool

4 Likes

Thanks for the proposal. A few questions:

  1. Can you describe more details on the liquidity incentive program?
  2. Please also add in more detail what’s the benefit to Harmony ecosystem and community.
  3. What’s the estimated TVL we want to achieve with this program? (could be based on previous campaign of yours if any)
2 Likes

“Our mobile app, Sperax Play, we are onboarding our 600k users into our stablecoin and we don’t want to mitigate slippage.”

could you post the user data on this forum?

1 Like

@rongjian Thanks for your reply, answers below:

  1. Can you describe more details on the liquidity incentive program?
    -This program is following the Sperax Genesis Campaign, which is allocating 250M to incentivize the minting of Sperax USD on Arbitrum.
  • The cross-chain program is designed to incentivize the deployment of Sperax USD, interest bearing stablecoin in alternative layer 1 ecosystems for dApp integration.
  • The collateral pool resides on Arbitrum, but the Seprax USD is minted on other chains.
  • Sperax has a budget of 250M $SPA reserved for all partnerships in the cross-chain liquidity campaign.
  1. Please also add in more detail what’s the benefit to Harmony ecosystem and community.
  • New profit opportunities for Harmony stakeholders
  • Access to a decentralized, interest bearing stablecoin
  • Sperax to pay users to lock liquidity in a Harmony decentralized exchange
  • Access to a new user base of 600k users from Sperax Play community
  • Future collaboration/integration with Sperax Play mobile application
  1. What’s the estimated TVL we want to achieve with this program? (could be based on previous campaign of yours if any)
  • Using the same distribution design as USDs genesis campaign on Arbitrum, we can expect the following liquidity numbers:

Sperax contributes 5M SPA matched with 1.3M $ONE = $1,600,000 TVL
Sperax contributes 15M SPA matched with 4.8M $ONE = $4,800,000 TVL

This value would only increase as demand for USDs in Harmony dApps increases.

2 Likes

I am of full support for this proposal. Any questions, contact me on Twitter. I am an author at Entrepreneur.com and would love to cover this Partnership within an article, looking forward to the discussion here! :smiley:

I think USDs will bring huge value to Harmony ecosystem. USDs’s core research team is from Terra and USDs will become one of the leading stablecoins in the industry soon.