Author(s): Sperax Core Team & Layer2DAO team

Reference: n/a

Created: 8/8/2022

Labels: #LiquidityMining, #Partnerships

Simple Summary

Sperax is building towards something big to bootstrap USDs adoption. Being the preferred stablecoin and yield automator on Arbitrum requires great liquidity, TVL, and partners in the ecosystem. The new Sperax Demeter Protocol is under construction - the final vision being a fully automated farming-as-a-service protocol built on Uniswap v3 and controlled via Sperax dApp.

Sperax has solidified its first partner to prove out the concept and demonstrate to the Arbitrum community the new ease of getting deep incentivized liquidity on Uniswap v3 without any engineering work. The Sperax Team is proposing the launch of a L2DAO/USDs farm, with SPA incentives, on Uniswap v3 using Sperax’s Demeter protocol contracts.

Abstract

Sperax is building farming-as-a-service tools for Uniswap v3. The intent of these contracts are to offer existing and new Arbitrum ecosystem projects the opportunity to launch a Uniswap farm without any engineering debt on their side.

More about the final protocol spec coming very soon.

Motivation

Uniswap particularly lacks infrastructure for new teams to navigate the engineering complexity of launching a Uniswap v3 farm. This results in Arbitrum liquidity being provided on Sushiswap even though it’s far less capital efficient.

Sushi holds over $100M TVL on Arbitrum and Uniswap holds only $77M. We believe this has to do with the complexities of building on Uniswap V3. With the introduction of the Sperax Demeter Protocol, all Arbitrum projects can benefit from Uniswap v3 liquidity in a nearly no-code environment, even easier than deploying on Sushiswap.

The partnership with Layer2DAO will act as a proof of concept, proving to the Arbitrum ecosystem that users don’t have to be an engineering expert to spin up a Uniswap v3 farm.

Secondly, this trading pair will increase USDs TVL, the cornerstone of the growth within the Sperax ecosystem. Increasing TVL means more collateral is working in DeFi strategies to fund Auto-Yield, increase revenue sharing with veSPA stakers…

Layer2DAO is an ideal partner for this Demeter protocol proof of concept as they wish to match contributions and execute a token swap with the Sperax Foundation.

Overview

To prove out the new Sperax Demeter Protocol, Sperax will partner with Layer2DAO to spin up an incentivized Uniswap v3 Farm, pairing Layer2DAO token against USDs with SPA and L2DAO incentives.

Layer2DAO, which uses its Treasury to invest in L2 protocols and ecosystem plays, serves as a diversified venture fund for investors looking to gain exposure to the L2 ecosystem growth. It also provides liquidity, depositing, and staking, perpetually reinvesting proceeds back into the Layer2 DAO. They will act as marketing and growth for Sperax in addition to contributing to USDs TVL.

Technical Specification

The L2DAO/USDs farm will be launched on Arbitrum Uniswap v3 using the Demeter Protocol contracts. An emissions budget has been set at 5,555 L2DAO tokens/day and 33,333 SPA tokens/day to this variable APR farm. Once launched, the farm will be implemented into the Sperax dApp UI. The duration of this farm is 30 days or until the launch of the fully on-chain Demeter protocol.

Funding will come from the bootstrapping liquidity budget.