$SPUSD, or SpaceUSD, is SpaceDEFI's yield-bearing and overcollateralized stablecoin. Launch in March.
$SPUSD is an extremely exciting token designed to have a highly efficient use of market-neutral assets (including stablecoins and hedged tokens) with the following characteristics:
- Overcollateralization ratio varying between most of the time between 110% and 130%
- Very high APR until the TVL increases significantly; APR to stabilize around 15-40%
- Use throughout the SpaceDEFI ecosystem, including in the $SPTR and $SPACE treasuries
- Limited supply with an on/off switch to the mint function
The treasury backing $SPUSD is using two categories of yield generation:
- arbitrage (where stablecoins are held for over 99% of the time, with brief periods where other assets are bought-and-sold immediately) and
- delta-neutral strategies (ie shorting and longing BNB at the same time and generating yield on both sides). $SPUSD will start running with 3 strategies and will use up to 6 different strategies falling into the two categories mentioned.
Both types of strategies are on the safer end of the spectrum but still bear some risk. We mitigate this risk with a high collateral ratio. The revenues generated will be split between
- the collateral vault (to increase the collateral ratio),
- the $SPUSD holders (including the SPTR treasury),
- the ecosystem token holders and
- the team.
$SPUSD’s mint function has an on/off switch, and the team will only allow the minting of new tokens when the strategies can generate a high enough yield on the TVL. This protective measurefor investors limits the supply, and as a result $SPUSD may be traded above 1$, but not below. The tokenomics are designed and thoroughly tested to ensure that the yield-generation aspect is not taken advantage of by exploiters, with multiple failsafe mechanisms.