Sperax, also known as SPA, is an open-source development team that was established in late 2019. The team is dedicated to creating software products based on the Sperax protocol. At the heart of Sperax is the Sperax token ($SPA), which is used to power a suite of DeFi applications and the first auto-yield stablecoin, $USDs. Sperax aims to address the volatility issue that has been a hurdle for cryptocurrency adoption. By creating a stablecoin, Sperax strives to provide a solution that can be used as a medium of exchange without the high volatility associated with most cryptocurrencies.

Sperax operates by using the Sperax token ($SPA) as the core of its system. Users can mint new USDs by locking eligible collateral within the system. The protocol then mints an additional stablecoin. If the price of USDs drops below the peg, interest rates will decline, encouraging more users to burn their existing USDs and buy USDs from exchanges to burn them. This reduces the supply of USDs, pushing the price upwards. Sperax also employs a dynamic transition between algorithmic and collateralized mechanisms, adjusting the fraction of the money supply that is algorithmically determined versus the fraction that is collateralized.

Sperax aims to provide a stablecoin that can be used as a medium of exchange without the high volatility associated with most cryptocurrencies. This makes it potentially useful for a wide range of applications in the DeFi space. For instance, depositing stablecoins in a savings account can now generate positive yields for users who do not need to fear that changes in the price of the currency could offset any interest gain. Sperax also aims to implement a dual token system with a stablecoin (USDs), as well as a governance/value accrual token (SPA), providing more flexibility and potential use cases for its users.

Sperax was founded in late 2019 with the goal of addressing the volatility issue that has been a hurdle for cryptocurrency adoption. The team behind Sperax has focused on building software products based on the Sperax protocol, with the Sperax token ($SPA) at its core. Since its inception, Sperax has built the first auto-yield stablecoin, $USDs, and a suite of DeFi apps. Over time, Sperax has strived to combine elements of existing different designs, by being an algorithmic, scalable, trustless, and decentralized stablecoin protocol that operates on-chain.

Sperax strives to improve transaction efficiency and speed by utilizing a unique consensus module known as the BDLS protocol. This protocol is designed with a focus on security and efficiency. The BDLS protocol requires fewer rounds of communication to reach consensus compared to some Byzantine Fault Tolerant (BFT) protocols. This reduction in communication rounds could potentially increase the speed and efficiency of transactions on the Sperax blockchain. Sperax has introduced a native stablecoin system, backed by fiat currency. This system allows developers to build decentralized applications without the need to educate users about cryptocurrency, which could potentially improve the platform's efficiency.

Sperax seeks to offer improvements in traditional finance through innovative decentralized finance (DeFi) solutions. At the core of the Sperax ecosystem is its native token, SPA, which serves as both the governance and value accrual token. Sperax provides users with modern financial solutions, including an auto-yield stablecoin called USDs, a suite of DeFi applications, and a community-driven governance model. The platform supports the launching and managing of decentralized exchange liquidity through a protocol called Demeter. Sperax's approach combines the scalability of algorithmic stablecoins with the stability of collateralized counterparts, with the intention of fostering a borderless, frictionless, and inclusive financial ecosystem.

Users can engage with the Sperax DeFi ecosystem through a variety of methods. One of the main ways is through the SPA Gauge, a mechanism that provides non-monetary incentives to USDs trading pairs. Any DAO on Arbitrum can utilize USDs and the SPA gauge to introduce a token or aim to enhance a token’s on-chain liquidity. Projects simply initiate a trading pair with USDs, after which they may be eligible to receive non-monetary incentives from the gauge. Users can also participate in weekly votes to determine how these non-monetary incentives are distributed across the USDs pools. The SPA Gauge system also enables DAOs to provide non-financial incentives to veSPA holders in exchange for voting on specific gauges. Users may participate by staking their SPA tokens, which may result in receiving veSPA (Vote-Escrowed SPA). This participation grants them the opportunity to receive non-financial incentives and participate in the protocol's governance through voting power in Sperax governance.

SPA token holders have the ability to influence the future development of the Sperax network through a decentralized governance model. This model enables SPA token holders to propose, vote on, and implement changes to the Sperax network. The primary function of the SPA token is to maintain stability and ensure the operation of the system. The Sperax protocol seeks to offer improvements within the world of stablecoins and DeFi by providing a stablecoin protocol that aims to combine algorithmic and collateral-based approaches. SPA token holders can actively participate in shaping the ecosystem’s future, receive non-monetary incentives from staking, and influence protocol operations through their voting power. The balance of veSPA, a derivative of SPA, is directly proportional to the duration of token lockup, which is a factor in the governance model.

Sperax aims to address interoperability with other blockchains by implementing a "virtual bridge". This bridge allows decentralized applications (dApps) and smart contracts to interact and share assets across multiple blockchain networks. This feature aims to facilitate cross-chain interoperability, enabling the transfer of value between different blockchain networks and applications. In doing so, Sperax seeks to contribute to the functionality and efficiency of the decentralized finance (DeFi) ecosystem. And, with a focus on developer-friendly solutions, including a simple programming language, Sperax provides tools for developers to build and deploy dApps on the Sperax network, which can aid in promoting interoperability.

Sperax provides a range of tools and resources for developers in the decentralized finance (DeFi) space. Central to the Sperax ecosystem is its native token, SPA, which functions as both the governance and value accrual token. Developers can utilize the Sperax platform for the creation of auto-yield stablecoins, such as USDs, and DeFi applications. Sperax also includes a staking protocol that enables SPA holders to stake tokens on Arbitrum or Ethereum, participating in the staking protocol with veSPA tokens. Sperax provides a community-driven governance model, facilitated through the Sperax DAO, which enables SPA holders to engage in proposal discussions, snapshot votes, and the Sperax improvement plan. The platform includes the SPA Gauge, a reward emission mechanism for USDs trading pairs on the Demeter protocol. Sperax includes the Demeter Protocol, a tool for decentralized autonomous organizations (DAOs) to launch and manage decentralized exchange liquidity pools.