SIP-7: USDs Curve Liquidity Experiment

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SIP-7: USDs Curve Liquidity Experiment

Author(s): Sperax Core Team

Reference: Mentioned in recent AMAs

Created: Aug 22, 2022

Labels: #LiquidityMining

Simple Summary

This proposal is following up on the governance post in the Curve forum. This well received proposal confirmed interest from the Sperax and FRAX community for a USDs Metapool on FRAXBP Arbitrum. SperaxUSD to provide bribes at 88,888 SPA/day, each week for a 4 week liquidity experiment.


In order to improve the user experience for USDs users and the greater Arbitrum ecosystem, $USDs liquidity must be on multiple DEXs. This pool will be a metapool on top of the FRAX base pool (FRAXBP) on Curve. If this pool doesn’t receive significant TVL or high economic activity, we can choose to discontinue the bribes at the end of the 4 week period.


Curve is the foundation for stablecoin liquidity. Curve provides visibility to USDs and incentivizes liquidity through CRV, the DEX’s native token. This CRV allocation is purchased via the bribes to veCRV and clCVX holders. CRV incentivization would help deepen the liquidity of USDs and lay the groundwork for future collaborations with the FRAX protocol.

Such collaborations include:

-Demeter pools

-FPI as collateral in USDs

-USDs FXS treasury swaps

-Protocol owned liquidity programs


Using the bootstrapping liquidity budget, 88,888 SPA/day should create a pool with ~3M TVL according to the current trading price of SPA at 0.013. Thanks to the 100% backed USDs model, this increase in TVL directly drives value to SPA. In addition to the increase in TVL driving value to SPA, USDs becomes highly liquid on Curve, increasing user experience. This is a self reinforcing phenomenon because as the experience increases, TVL grows, which creates a better experience thanks to the TVL driving value to SPA. SPA goes up in price, pool rewards increase, and liquidity for USDs increases in parallel. Positive flywheel in action.

This SIP is suggesting a 4 week trial period where we test the weekly bribe of 88,888 SPA and resasses the bribing system at that point.

Technical Specification

Bribe Size: 88,888 SPA daily (622,216 SPA weekly).

Funding Source: Bootstrapping liquidity budget.

Funding Duration: 4 weeks of bribes

Bribing Protocol: Voitum - Votium is an incentives platform where vlCVX and veCRV holders can receive compensation (bribes) from buyers interested in amassing voting power(CRV emissions). More on Votium here.

  • Yes
  • No

0 voters

1 Like


Quick question, I read this in the CRV proposal
“At a rate of 1% per year, the protocol becomes partially backed by the protocol’s ability to mint SPA when redeeming USDs.”
Is this still planned?
Isn’t going algo way a taboo after UST?

1 Like

Good catch! That Curve proposal referenced was written before SIP-6 was passed, so it was accurate at the time. Once SIP-6 is implemented by the Sperax Foundation there wont be any rate of algo.

1 Like

I like this idea and where this proposal could lead! I think its smart to start with the timeframe suggested and then monitor its effectiveness.

1 Like

This could be beneficial in the long term. @DeFi community of Ethereum! Here we come!

1 Like

Great point, after SIP6 this is no longer applicable :)

1 Like