Adding SPA/USDs Liquidity on Uniswap
This article will walk you through the process of farming Sperax’s governance token, SPA, by providing liquidity to the SPA/USDs liquidity pool and staking it into Sperax’s SPA/USDs farm!
Before we dive into the demonstration it’s important to define & clarify any buzzwords you might read within this article. Below I’ve laid out a few keywords to familiarize you with as we move forward!
- Yield Farming: the act of managing passive strategies to earn well-defined interest in cryptocurrency positions to maximize returns.
- Liquidity Provider: an individual who provides/offers their crypto assets to a platform or protocol in return for fees and token rewards.
- Impermanent Loss: the event in which the price of the assets within a liquidity pool changes from the initial provision price; effecting the pair ratio.
- Sperax USD (USDs): an L2-native, hybrid stablecoin which generates auto-yield natively through protocol implemented strategies.
- Sperax (SPA): Sperax Protocol’s governance token
At the time of writing this, Sperax USD (USDs) is the #4 most traded token on Uniswap-Arbitrum and the largest yield-generating token on Arbitrum as well!
Now that we have a little bit of context, let’s start up our tractors and start farming some SPA!
Step 1: Top-up your wallet with SPA and USDs
In order to start harvesting the good stuff, we need to acquire some much-needed tools to begin the process.
Assuming you have some ETH in your wallet, let’s follow the steps below to swap our ETH to SPA and USDs:
- Import both tokens (SPA and USDs) to your Arbitrum wallet
- If you’re using Metamask, go ahead and open your wallet by tapping on the Metamask icon in your browser plugin.
- Tap on ‘Import tokens’
- Copy & Paste the following token contracts individually in the ‘Token Contract Address’ field:
- SPA: 0x5575552988a3a80504bbaeb1311674fcfd40ad4b
- USDs: 0xd74f5255d557944cf7dd0e45ff521520002d5748
5. When pasting the token’s contract address, the token’s ticker will populate in the ‘token symbol’ field and the ‘Add Custom Token’ button will be highlighted.
6. Tap on ‘Add Custom Token’
7. Now you should be able to see both assets in your wallet.
Step 2: Head over to Uniswap 🦄
Step: 3 Connect to Arbitrum.
Make sure that you’re connected to the correct network; in this case, it’ll be Arbitrum.
Step 4: Select SPA as the secondary asset
ETH should be automatically selected as the primary asset of exchange. Since we’ll be swapping ETH for SPA, go ahead and tap on the ‘Select a token’ dropdown menu.
Tip: Although I used ETH as the primary asset of exchange, we recommend USDC as the base asset when exchanging to SPA (and USDs). Through this route, you’ll experience a lower price impact when swapping.
After doing so, type in SPA in the search box and click/tap on the token in the list view.
If SPA doesn’t pop up in the list view, proceed to copy & paste the token contract address in the search box:
- SPA Token Contract: 0x5575552988a3a80504bbaeb1311674fcfd40ad4b
Step 5: Swap for SPA
Since the idea is to provide liquidity to the SPA/USDs pair, we need to acquire a proportionate amount of SPA-to-USDs. For example, if you’re holding $10 worth of SPA, you’ll need to hold $10 worth of USDs.
Proceed to enter the amount of ETH you’d like to swap for SPA.
As you can see in the screenshot provided, I started off with a negligible amount of ETH (0.04906 ETH = ~$58.28). For demonstration purposes, I’ll be swapping 0.01263 (~$15) for 593.7 SPA.
After you’ve entered the amount of ETH you’d like to exchange for SPA, tap on ‘Swap’.
You’ll be redirected to the transaction confirmation screen where you’ll need to pay Gas fees. Since we’re utilizing a layer-2, these associated fees will be relatively low in comparison to Ethereum Mainnet.
Step 6: Swap for USDs
Now that we’ve acquired SPA, it’s time to swap for some USDs!
Similar to step 3 above, you’ll need to search for USDs when tapping accessing the dropdown menu. In doing so, you may notice that when you search for USDs it does not appear in the token list.
Copy & Paste the provided token contract in the search box and tap on ‘import’ once you see USDs in the token list view.
Once USDs is imported & selected, proceed to enter the amount of ETH you’d like to swap.
Reminder: Make sure you’re swapping for the proportionate amount of SPA in order to maintain the 50/50 ratio when providing liquidity.
After entering the amount you’d like to swap for, tap on ‘Swap’ and pay the corresponding gas fee.
Step 7: Approve SPA & USDs contracts
Now that we’ve acquired SPA and USDs, it’s all smooth sailing from here!
Go to app.sperax.io and tap on the ‘Farm tab.
Under the ‘Farms’ section, you’ll see the SPA/USDs pair as the first option. Proceed to tap on ‘+New Position’.
In doing so, you’ll be redirected to the ‘Add Liquidity’ page.
Continue by entering the amount of SPA and USDs you’d like to add as liquidity or if you’d like to max out your available balance tap on ‘Max’.
Before you can add liquidity, you must first approve both SPA and USDs. You can do so by tapping on ‘Approve SPA’ and ‘Approve USDs’ as well as paying the corresponding gas fees for each approval.
Step 8: Add liquidity
Once both tokens have been approved, you can now proceed to add liquidity to the SPA/USDs pair by tapping ‘Add Liquidity’.
An ‘add liquidity’ confirmation popup will appear in which you should continue by tapping on ‘Add liquidity’ and paying the associated gas fee.
Step 9: Stake your SPA/USDs LP Token
If you’ve made it this far, congratulations you’re literally one step away from earning juicy SPA yields + auto-yield generated from holding USDs!
You now have two options:
- Lockup your SPA/USDs LP tokens and earn 1,081.22% (variable);
- Don’t lockup your SPA/USDs LP tokens and earn 460.57% (variable).
Ultimately, the choice is yours.
As shown in the screenshot above, I’ve elected to lockup my LP tokens.
Once you’ve decide which option you’ll be moving forward with, continue by tapping on ‘Stake’ and pay the gas fee.
Step 10: Happy Farming!! 🚜
After successfully staking your LP tokens, you can see your balance by:
- Returning to the ‘Farms’ tab
- Scrolling to the SPA/USDs farm option and tapping on the down arrow
- Scroll until you see the ‘My Farms’ section
Need to Know
Once you’ve added liquidity and staked your LP tokens, you’ll automatically begin earning SPA rewards. Below I’ve included a few steps on how to (1) Claim your farmed SPA and (2) Initiate a Cooldown period.
Claiming your SPA
- Going to the ‘Farm’ tab
- Scroll down to the ‘My Farms’ section and tap/click on the down-arrow to open the ‘My Stakes’ view
- Tap/Click on ‘Claim’ and pay the corresponding gas fee
- Hold or Stake your SPA
- Rinse & Repeat!
Initiating Cooldown
Say you no longer want to stay staked in the SPA/USDs farm, in order to unstake your LP tokens you need to:
- Going to the ‘Farm’ tab
- Scroll down to the ‘My Farms’ section and tap/click on the down-arrow to open the ‘My Stakes’ view
- Tap/Click on ‘Initiate Cooldown’ and pay the corresponding gas fee
Initiating the cooldown period indicates that you’ve decided to exit/withdraw your tokens from the locked farm. Once the cooldown period has begun your LP position (locked tokens) will be released after 21 days.
About Sperax
Sperax is dedicated to benefiting all financial lives with blockchain technology.
Sperax has built the first Auto-Yield stablecoin, $USDs, to harness DeFi yield with a target 11% APY.
$SPA, the Sperax governance token, rewards stakers who empower Sperax DAO to make $USDs fully decentralized, and 100% collateralized by exogenous, on-chain assets.
The protocol is currently in a growth stage, bridging the gap to crypto for a global user base by offering $USDs on user-friendly platforms.
Read more at sperax.io and join the Sperax community!
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