Sperax is a DeFi protocol operating on the Arbitrum network that mints a 100% collateralized stablecoin called Sperax USD (USDs). The USDs stablecoin is backed by on-chain collateral and offers an effective yield-generating strategy for the protocols users. It is the premier trading pair on the Arbitrum network. The stablecoin market consists of three kinds: centralized fiat-backed stablecoins like USDT and USDC, decentralized CDP-backed stablecoins like DAI, and algorithmic stablecoins like Basis and USTC. However, the fully on-chain USDs combines the best features of these stablecoins to offer decentralization and scalability. Sperax also automates yield earning on stablecoins by sending collateral to audited DeFi protocols, and 50% of the yield generated is shared with USDs holders through the Auto-Yield feature. SPA is the utility token of the Sperax ecosystem used for governance and accruing value. Token holders can stake SPA on the Sperax protocol to receive veSPA, participate in decentralized governance, and earn staking rewards.

Sperax protocol users can mint USDs stablecoin by supplying eligible collateral with zero fees. Acceptable collateral as of March 2023 includes USDC, DAI, FRAX, and VST. The platform may add support for more tokens as collateral in the future. USDs tokens can be redeemed against the collateral on the protocol with zero fees. The USDs stablecoin works as an IOU on the pooled collateral. Collateral tokens with a value less than 1 dollar are treated with their actual market price, while tokens with a value exceeding 1 dollar are treated as 1 dollar to maintain USDs as a fully collateralized or overcollateralized stablecoin. Users can redeem 1 USDs for 1 US dollar after deducting a redemption fee of 0.2%. The platform collects a portion of redeemed USDs as redemption fees, generating revenue for the Sperax protocol.

The Sperax project was launched in 2020, with its team initially working on developing a Layer-1 blockchain. The work later shifted to building the industrys first auto-yield bearing stablecoin called SperaxUSD (USDs). USDs was released on Arbitrum in December 2021 for its higher efficiency and scalability. The Sperax DAO launched the Demeter liquidity management solution and the SperaxUSD stablecoin on Arbitrum in 2022. In the same year, Sperax introduced its official staking program and liquid staking for SPA tokens. The Sperax DAO was established in July 2022 for off-chain governance. Sperax announced partnerships with Plutus, Saddle Finance, FraxLend, and Gains Network in 2022 and 2023.

Sperax is an interesting crypto asset to add to your portfolio, especially if you want to diversify into Layer-2 and DeFi tokens. As the utility token of a DeFi protocol on Ethereum's leading Layer-2 network, the value of SPA token could rise as Sperax adds support for more collateral tokens, expands to new blockchain ecosystems, or implements new features that improve the protocol's liquidity and efficiency.

The price of Sperax token could increase as more users sign up to utilize USDs for yield generation and other DeFi activities on the network. This could increase investor confidence in the Sperax protocol and boost the SPA price.

The price of SPA crypto could also increase amid an improvement in market sentiment toward digital assets. A bullish mood in the crypto market increases the risk appetite among investors, driving buying activity that can support the Sperax value.

While offering an accurate SPA coin price prediction is impossible, several fundamentals impact the price action and volatility of the Sperax token. These include:

Level of Adoption

An increase in the number of users on the Sperax protocol could drive up the demand for and value of SPA token. This could be driven by Sperax announcing support for more tokens as collateral or partnering with more DeFi protocols in the Arbitrum network for yield-generation activities.

Future Developments

Whenever the developers behind the project add new features that make Sperax and SperaxUSD more attractive, the value of SPA crypto receives a boost. The announcement of new investments, integrations, or expansion to support more blockchain networks beyond Arbitrum could also increase the price of Sperax coin in the market.

Market Outlook

A favorable outlook among investors towards cryptocurrencies, especially the decentralized finance sector, could also drive growth in SPA value. Higher DeFi activity can increase the demand for the USDs stablecoin, and the resulting uptick in on-chain activity can increase the price of Sperax token. However, a bearish or risk-averse sentiment can lead to sell-offs that weaken the SPA coin price.

SPA is the utility token of the Sperax ecosystem and serves the following purposes:

Governance Token

SPA token holders can become members of the Sperax DAO and participate in the protocol's off-chain governance. They can submit and vote on proposals based on their voting power, contributing their thoughts on new partnerships and yield opportunities.

Staking

You can stake SPA on Ethereum or Arbitrum to receive veSPA tokens that give you voting power. In addition to governance, staking SPA allows you to earn rewards generated from yield shares and fees by Sperax.

Crypto Asset to Trade and HODL

Trade Sperax against other cryptocurrencies to profit from changing market conditions and volatility. You can buy or sell SPA against other digital assets or hold it long-term if you believe in the future potential of the Sperax protocol. Review the current price of Sperax coin, SPA current market cap, current circulating supply, and 24-hour trading volume, and perform technical, sentiment, and fundamental analysis on the SPA to USD price chart before trading Sperax in the market.

You can earn using the Sperax protocol in the following ways:

Hold USDs

Buy or mint USDs using the protocol and hold them in your self-custody crypto wallet to earn auto-yields of up to 11% APY through Sperax. This is one of the most convenient and lucrative ways to earn on Sperax.

Farm

Provide liquidity in designated pools, stake your LP tokens on Uniswap v3 and Saddle farms supported by Sperax. Check this link to find available farms to earn rewards through the Sperax protocol.

Stake SPA

Staking SPA allows you to earn protocol fees, a share of auto-yield from USDs, and other staking rewards. Through this option, you can also enjoy voting power on the Sperax protocol's off-chain governance mechanism.

Staking SPA on Sperax allows you to earn staking rewards, participate in governance, and enjoy returns from the protocol's auto-yield feature. Here's how to stake SPA on Sperax:

1. Visit the Sperax dApp and connect your wallet to it. Ensure you have sufficient funds for staking by buying SPA on BYDFi or other supported platforms and withdrawing your tokens to your wallet.

2. Click on the Stake tab and enter the number of SPA tokens you wish to lock in the protocol.

3. Select the Lockup Period, ranging from 1 month to 4 years, after reviewing the APYs on offer and the veSPA Balance you are eligible for.

4. Click on Stake and confirm the transaction through your wallet.

5. Sit back, earn rewards, and grow your crypto portfolio by staking SPA tokens on the Sperax protocol.