Sperax Tokens — SPA, veSPA, & xSPA | Explained in Short!
Sperax is a decentralized platform built on the Arbitrum Network. The Sperax ecosystem has various tokens for different use cases such as the first auto-yield stablecoin USDs, native token SPA, governance token veSPA, and reward token xSPA.
These tokens are the lifeline of the Sperax Ecosystem. Let’s understand why these tokens are useful for the ecosystem and the differences between each other.
I already have an article about stablecoin USDs, you can read it here.
What is SPA?
Sperax Token ($SPA) is the native token of the Sperax Ecosystem. The maximum supply of $SPA tokens is 5B, which can be traded via centralized or decentralized exchanges such as Coinbase, Kucoin, Uniswap, etcetera
►Staking $SPA token earns you veSPA tokens as rewards and veSPA gives you the power to participate in SperaxDAO governance.
►25% of all protocol revenue is used to buy and burn $SPA from the open market, which maintains constant buying pressure and regularly decreases the supply of $SPA Tokens.
►The circulating supply of the $SPA token is 1.69B and the market cap is only 6.5M. Looking at the market cap and everything that Sperax offers, the $SPA token has the potential to grow.
What is veSPA?
veSPA (vote-escrowed $SPA) is a locked version of $SPA Token and veSPA tokens are non-transferable.
veSPA Token is necessary to participate in Sperax’s governance. veSPA Token Holders can control the growth, direction, and development of the Sperax ecosystem.
However, in order to be a governor, as I said earlier, you need veSPA tokens, which give you the ability to participate in governance voting.
How much veSPA token you will earn from staking depends on the lock duration of your staking. A longer lock period = more veSPA tokens. Sperax gives you flexible Lockup periods, you can between a minimum of 7 days to a maximum of 4 years as per your requirement.
What is xSPA?
xSPA is a reward token of the Sperax ecosystem and is transferable. You can stake xSPA to get veSPA with a lockup period of a minimum of 180 days or more. Alternatively, xSPA can be redeemed for 50% to 100% $SPA within 15 to 180 days of staking.
►Staking xSPA gives you more governing power and earns you staking rewards and bribes.
►Users can either stake 1 xSPA for one veSPA or redeem 1 xSPA for 1 SPA.
►Users can redeem 1 xSPA token for 1 $SPA token by depositing their xSPA token through the redemption contract.
►1 xSPA will be equivalent to 1 SPA but users will get only 0.5 $SPA for 1 xSPA at the time of redeeming if they lock the xSPA in the redemption contract of 15 days. They’re eligible to get 1 $SPA for 1xSPA only if they lock the xSPA in the redemption contract for at least 180 days.
►If the user’s redemption period is higher than 15 days but lower than 180 days, the amount of $SPA a user gets will be calculated by this equation: Receivable spaAmount = (_xSpaAmount * (_redeemDuration + 150 days)) / 330 days .
►Users can stake 1 xSPA token in the veSPA contract to increase their staked SPA balance by 1 SPA token for the existing lockup period but the system will show you an error message if you have 0 $SPA staked or the staking period is less than 180 days.
Now, This article has come to an end. I hope you found this article helpful. However, if you have any queries or questions, please ask in the comment section below.
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