Spectrum Protocol is expanding to Aptos, a scalable layer-1 blockchain based on Move programming language.

At launch, Spectrum Protocol offers 4 auto-compound vaults on Pancake Swap. More vaults will also be added soon.

lzUSDC-lzUSDT LP: for you to earn high yield in stablecoin with LayerZero tokens.
ceUSDC-ceUSDT: LP for you to earn high yield in stablecoin with Celer Network tokens.
whUSDC-whBUSD LP: for you to earn high yield in stablecoin with Wormhole tokens.
Cake-APT LP: for you to collect Cake and APT tokens.

APT, the native token of Aptos, can be traded and transferred from many exchanges. Other tokens can also be bridged from various blockchains via Pancake Bridge, Aptos Bridge (lzToken), cBridge (ceToken), or Portal Bridge (whToken).

Spectrum Protocol supports all leading wallets on Aptos including Petra, Pontem, Martian, Rise, and Fewcha.

The auto-compound vault on Aptos has the same fee structure as in Terra 2.0, no deposit fee and 5% performance fee. APY shown in the web app already includes fees. The revenue from Aptos will also flow back to SPEC stakers once the token and governance staking are relaunched.

This is the first step of Spectrum’s expansion to multi-chain yield optimization. Please stay tuned and follow us on Twitter to get latest updates or explore Spectrum Protocol on Aptos at https://aptos.spec.finance and on Terra 2.0 at https://terra.spec.finance.

In Terra 2.0, Spectrum Protocol is launched with 5 auto-compound vaults.

ASTRO-USDC LP: for you to collect ASTRO. Astroport shows us high potential in leading Terra ecosystem with Astrowars. The bear market could be a good time for collecting ASTRO.
USDC-USDT: LP for you to earn high yield in stablecoin.
USDC-LUNA LP: for you to collect LUNA and earn high yield during this bear market.
LunaX-LUNA LP: for you to collect LUNA and avoid impermanent loss.
VKR-USDC LP: for you to collect VKR. Valkyrie is the first launchpad on Terra 2.0.

With this relaunch, we also removed deposit fee and reduced performance fee to 5% to maximize your earnings. APY shown in the web app already includes fees. With all 5 vaults, you will be able to earn compound interest without hassle. As the Terra 2.0 is growing, we will keep adding more vaults and strategies for people with different objectives.

SPEC Token

SPEC token is not yet launched. People who are eligible for SPEC can check the SPEC amount in Airdrop page, but it is not yet claimable. We need some time for the revenue engine to spin up and set a strong foundation for SPEC price.

Next step?

During this bear market, we will keep setting up our foundation such as SPEC token, incentivized SPEC-USDC LP pool, SPEC staking, governance, and more. We also have new products and smart contracts ready to be launched.

Please stay tuned and follow us on Twitter to get latest updates or explore Spectrum Protocol on Terra 2.0 at https://terra.spec.finance

In only 1.5 months, Spectrum will reach its first anniversary. We are a very first protocol in Terra and we never think it will collapse this fast.

We joined Terra because we love the culture here. Most protocols drive changes through governance rather than a single person. Tokenomics improvement on Spectrum was also proposed by the community not the dev. Most protocols open source their codes for transparency including us. We got auditing not only from auditors, but also devs around the world. We can say that Terra is a very good prototype for a decentralized ecosystem.

Competition in Terra was quite fun. Many protocols in Terra come with fresh ideas that you cannot find in other chains. Some apps connect DeFi to the real world usage and create value. Spectrum itself doesn’t only compound but also tried to offer different strategies like auto-stake, auto-vote (withdrawn), Pylon liquid vault, single asset vaults on top of our unique tokenomics and intuitive user interface. At peak, Spectrum once achieved $240M TVL and SPEC market cap reached $45M. One thing that we feel really sorry is that we do not yet have a chance to launch these products:

• Leveraged farms for Alpha Homora V2 and Borrowed farms, a high yield delta neutral strategy build on top of leveraged farms. Auditing is about to complete and planned to launch in this month.
• xAstro staking and spAstro, this should be highest yield for xAstro staking: smart contract codes finished and about to start audit.
• Luna slow-burn vault, a secret product to be announced soon. This should be the highest yield for luna staking with the option for investors to exit any time. Smart contract codes finished, it was about to start auditing also.

During the past few days, it was the very difficult time for our community, team, and everyone in the ecosystem. We feel truly sorry for those who lose. Our team got the huge effect also. Only good thing is that this could be a chance for our team to take a break after long fight for a year.

As of now, the dust still has not settled and the path is still unclear. We are evaluating all possible options going forward.

Spectrum website and the compounding will keep operating.

Till then, stay strong and stay safe.

Spectrum Protocol

When Astroport launches a new LP boost, Spectrum will then open the ASTRO Lock Vault. The ASTRO in this vault will be locked forever and you will get spASTRO (staked perpetual ASTRO) as a receipt token, this token will be liquid and tradable so you can exit your position whenever you want.

This might sound similar to other platforms, but here are the differences.

Spectrum already has a lot of TVL on Astroport pools. ASTRO lock can earn 85%-130% APR on Day One.

Unlike other protocols, where they need time to ramp up TVL on each pool in order to get boosted. Spectrum already has a lot of TVL from many pools on Astroport. Ramping up ASTRO locking is much easier.

In case you wonder, how much is it for the APR? Based on the current TVL of Spectrum, on the first day of LP boost, Spectrum can provide an extra 45% APR to ASTRO locked stakers right away. With LP boost rewards and together with Astroport gov income (vxASTRO rewards), the total APR will be 85%.

We also have a dynamic boost rewards distribution (explained below). In case the boost still has not reached 2.5x yet, the rate will climb up to 90% extra APR. Total APR from boost plus Astroport gov income will be 130% APR!

While other platforms have not yet launched. Spectrum’s TVL still keeps increasing and APR can be even more.

APR paid in UST

Comparing ASTRO to dividend stocks, Astroport, one of the largest DEX in the world, is a very good platform to invest. If you stake ASTRO in Spectrum, the yield will be paid in UST, and it will automatically deposit to Anchor, so you will keep earning even if you have not claimed.

This provides you the similar value proposition as SPEC staking or LUNA. If ASTRO price has no change, you can enjoy 85% — 130% APR paid in UST. If the price goes down, you will have a higher APR. But if the ASTRO price goes up, you can enjoy a capital gain. In any scenario, ASTRO locked stakers with Spectrum will win.

Incentivized spASTRO-aUST Pool

Unlike other protocols that pair an ASTRO token with another ASTRO derivative token, you need to pay more commission on exit, and LP providers also earn less trading fees (at 0.025%). Incentivized spASTRO-aUST pool has yield bearing tokens on both sides. Even if there is no trading, spASTRO prices will keep increasing (from both Astroport and Anchor yields). When there is trading, you earn more trading fees (at 0.200%). Moreover LP providers will also earn SPEC and ASTRO as rewards.

Auto vote and Auto bribe taking

Spectrum always provides vaults for the users to enjoy high yield with minimum effort. Spectrum will automatically vote with voting weights that will return the highest yield to both ASTO locked stakers and LP providers. When Astroport launches a bribe marketplace, Spectrum will also take it into consideration and vote for the highest return.

When there is no bribe, Spectrum will vote based on Spectrum’s market share on Astroport. For example, if Spectrum has 3 pools,

ASTRO-UST: Spectrum TVL 4M, Astroport TVL 80M, market share 5%
ANC-UST: Spectrum TVL 4.5M, Astroport TVL 150M, market share 3%
LUNA-UST: Spectrum TVL 6M, Astroport TVL 300M, market share 2%

The weight for ASTRO-UST, ANC-UST, and LUNA-UST will be 5,3, and 2 respectively.

Dynamic Boost Rewards Distribution

LP boost rewards will benefit both ASTRO locked stakers and LP providers. However, when the number of staked ASTRO already reached a maximum boost of 2.5x, there will be no incentive to lock more ASTRO. Boost rewards distribution will be reallocated more to LP providers to attract more LP TVL and further increase more boost rewards. On the other hand, if the boost does not reach 2.5x, we need more ASTRO to lock in order to earn more, boost rewards will be allocated more to ASTRO locked stakers to attract more locked ASTRO.

Will current LP vaults get boosted when ASTRO Lock Vault launches?

Yes, you can just sit, relax, and farm as usual and you will get the extra boost.

I have ASTRO, should I put it into other protocols’ lockdrop or wait for Spectrum?

Other protocols’ lockdrop will open soon for you to lock your ASTRO forever and get new tokens in return. Spectrum ASTRO Lock Vault will open when Astroport launches LP boost, therefore it will take some time.

It is your call to choose the platform you like. Study the product and roadmap for each platform thoroughly. Putting your ASTRO into the lockdrop, you will earn short term rewards, but there is a risk if the platform does not perform. Or you can wait and decide when the boost launches.

Please stay tuned and follow us on Twitter to get latest updates or explore Spectrum Protocol at https://terra.spec.finance

What is Borrowed Farm?

Borrowed farm was introduced by Spectrum Protocol in the 2nd roadmap. Basically, user provides only UST and borrows another token to farm (e.g. SPEC token). With this strategy, user will have a very low price exposure to SPEC token. While price risk is very low, normally governance token LPs provide very high yield (like 1xx%). Effectively, borrowed farm could produce a very high yield with a very low price risk for users.

Introducing Leveraged x Borrowed x Compounded Vault

What will also come together with borrowed feature in the 2nd roadmap is leverage feature. Stable assets could allow higher leverage, For example, SPEC token could have max leverage around 2x, with current APR for SPEC-UST LP at 78%, the leveraged-borrowed-auto-compounded vault could boost APY to 293%!

Automatic Position Adjustment (APA)

One pain point for borrowing is, we need to keep monitoring our position to maintain loan-to-value ratio (LTV), and we also need to monitor borrowing rate. If the token has a very high utilization rate, borrowing rate could be skyrocket and it could eat all the yield.

Spectrum vault will provide automatic position adjustment. It will borrow more if token price drops to earn more yield. It will reduce position if token price goes up to reduce the risk of liquidation or when the borrowing rate is too high.

This service is only for SPEC Stakers

Borrowed farm requires available lending liquidity at optimal borrowing rate, which is limited. Therefore, we cannot open this for everyone.

Since seats are limited, users need to lock SPEC into 30-day or 180-day locked pools. $1 value of SPEC in 30-day locked can invest maximum of $5 in each borrowed farm, and $1 value of SPEC in 180-day locked can invest maximum of $10 in each borrowed farm (the rate could be changed later based on the governance).

For example, a user has $500 value of SPEC in 30-day locked and $1,500 value of SPEC in 180-day locked, so user can invest up to $17,500 ($500 x 5 + $1,500 x 10) in each borrowed farm (if there are 6 borrowed farms, maximum value to invest is $100,500).

Wen?

Contracts are completed and scheduled for audit at the end of Feb. Target release date could be the end of March. Please stay tuned!

Most of the time, we can get bPsiDP-24m from Terraswap at a discount rate, however, if we swap too many tokens in one transaction, the price of bPsiDP-24m might go above $1.

To ensure that you will always get the best rate for their deposit, we need best rate deposit mechanism for this vault.

Solution overview is simple:

1. We will find maximum UST amount (Optimal amount) to swap at Terraswap to get bPsiDP-24m with the rate less than $1 first.
2. Then the remaining amount will deposit directly via Pylon gateway, which rate is fixed at $1.

Here are the implementation details (Warning: math ahead!):

In Terraswap, we cannot swap directly from UST to bPsiDP-24m. We need to swap in 2 steps:

1. From UST to Psi
2. Then Psi to bPsiDP-24m

For Psi-UST pool: finding UST for a Psi amount

Terraswap swap rate is using this formula

From (1), this is the formula for swapping UST to Psi

From (2), we can shuffle variable to find UST amount

From (3), we can simplify to

For bPsiDP-Psi pool: finding bPsiDP for a Psi amount

This step is easy, from (1), we can get to this formula

And from (5), we can simplify to

Mix 2 pools together

Given that UST amount equal to bPsiDP amount, from (4) and (6), we can come to this formula

Let’s replace Psi amount with X

Now let’s move everything to one side

And simplify to

From here, we can apply quadratic formula

After apply, it will transform into

And simplify into

Now we can find optimal Psi amount. After we get X, use equation (4), we can find optimal UST amount

Here is pseudo code to find optimal UST amount

Conclusion

With best rate deposit to Liquid Pylon Vault, you can simply deposit UST to the vault and we will make sure that you will get the best rate without a hassle of going too many different apps or comparing different exchange rates.

Learn more about Liquid Pylon Vault or explore Spectrum Protocol at https://terra.spec.finance

Pylon is protocol providing lossless investment and early investor benefits in exchange of locking your investment for a period of time. In addition to fixed period lockup, Pylon just launched a new type of pool called Liquid Pylon pool, where your investment will be tokenized so that you can exit your investment early.

Introducing Liquid Pylon Vault — the first single staking product from Spectrum

Users can deposit $bDP tokens to Spectrum, and every hour Spectrum will collect rewards to buy more $bDP tokens for compounding. Other than maximizing your earning, this will also have following benefits:

• Since Spectrum keeps buying $bDP tokens from the pool, this will make $bDP token price come closer to principal ($1). Providing the opportunity for investors to exit more easily with lower premium.
• As there is less friction to investment, or there is even the chance for arbitragers to deposit to Pylon and exit via Terraswap. This will make Liquid Pylon pools more attractive and result in more investment to the pool and eventually more funding to the protocol.

Liquid Pylon Vault for Nexus Protocol

The first Liquid Pylon Vault on Spectrum Protocol will be for Nexus Protocol. Users can deposit $bPsiDP-24m tokens obtained from Pylon Gateway or UST directly into the vault (Spectrum will automatically convert UST to $bPsiDP-24m tokens for you).

User can then choose auto-compound strategy where earned $Psi rewards will be compounded back to the pool or auto-stake strategy where $Psi rewards will be staked in Nexus Gov to earn gov staking rewards or mixed between two strategies.

One $bPsiDP-24m token can be redeemed back to one UST after vesting period of 24 months (until October 2023) at Pylon Gateway or swap to $Psi anytime at Terraswap.

This is a lossless investment with a very high yield, as of now, it is equivalent to UST deposit with an interest rate of 114.13% APY. With this single staking liquid pylon vault, Spectrum Protocol helps maximizing your investment while providing positive impacts to the ecosystem.

Wen?

Now, stake your SPEC and vote at https://terra.spec.finance/gov/poll/24

1. Price should be continuously increasing from buyback.
2. Stakers get more tokens and returns.

This means when the price goes up, staking token will earn more than just holding token. This is supposed to be a very good model for stakers.

Then, what is the problem with buyback?

1. Since we do not burn, supply does not decrease and equilibrium price cannot go up from buyback.
2. If the equilibrium price cannot go up, but buyback money keep going into LP pool, then who sell first get realized return.
3. When the price goes down, buyback model will even creates sell spiral, since stakers will only have more cheaper tokens. Sell might be better option to realize profit or remediate loss.

But why sell spiral not happen in some other protocols?

Inflation is the main trigger for Spectrum. While other protocols reward around 25–40% of token supply for LP providers. Spectrum rewards 75%! More supply will only drive the price down despite Spectrum has a strong Gov income compared to other protocols.

The Proposal

1. SPEC stakers will receive realized return (UST) rather than more SPEC from buyback.
2. Setup Burn Vault for buy back and burn.

Realized return as UST

The mechanism is simple, rather than using UST from protocol fees to buyback SPEC, the UST will be distributed directly to stakers. We will deposit protocol earnings to Anchor to accumulated interest while your UST is idle, and you can withdraw UST (or aUST) at any time from both locked or no-lock staking pools.

This will create value proposition similar to LUNA. When the price goes up, stakers have asset with higher value. When the price goes down, the staking returns get higher and there is no need to sell since you still have a revenue stream.

Current 2x% APR (and up to 1xx% APR in bull market) is considered a good investment, owning SPEC will be like owning high-yield investment, so this will encourage people to hold and buy even more SPEC. With current P/E ratio of one digit, SPEC token price has a lot of room to grow.

Please note that, if your SPEC are auto-staked in vaults, you need to move your SPEC to Gov in order to earn UST.

Burn Vault

Out of 2.5 SPEC emission per block, 1.25 SPEC will go to burn vault. Basically, we will reduce emission by 50%. These SPEC will stay with burn vault only 1 month and get burned. Short-lived SPEC will be staked to 30-day locked staking pool to earn income and use that income for SPEC buy back and then burn. Effectively, we will burn more than 50%. The more gov income, the more SPEC will be burned.

With growing protocols on Terra and incoming products from Spectrum, the protocol will definitely grow. This tokenomics adjustment is our commitment to continue improving our platform and building stronger foundation for next release.

Thank you to our community for initiate and ideate this tokenomics improvement together. We take this as priority and we will keep listening and moving forward.

Wen? And how do I push this change?

Now. Please stake your SPEC and vote at https://terra.spec.finance/gov/poll/23

Thank you for the community to be a part of our first 50-day launch and overwhelmed support to a growing protocol’s TVL. It has been an amazing journey!

We have delivered all planned features during last two months and the audit is about to be completed. With only yield optimizer vaults for upcoming 70+ projects to be farmed on Terra, Spectrum Protocol already has a lot of works in the pipeline.

However, while Terra is the blue ocean, we must build our foundation to be ready for the red ocean. We can see the building blocks which will both empower users and strengthen our platform. Here are new products that we are going to build:

1. Single Asset Farming
2. Borrowed Farming
3. Short Farming
4. Fixed-term SPEC Staking

Single Asset Farming

If you think asset price will go up, putting asset to LP farm might not be the best idea. First, you need a half of your budget in UST in order to farm (for most LP pools). Second, LP farming involves impermanent loss. However, holding asset in the wallet also produces no reward, and you lose an opportunity cost to earn other income.

Single Asset Farming let you deposit tokens, similar to putting your money into the bank, you will earn an interest (plus SPEC reward). For governance token, you will also earn governance income on top of the reward and interest.

Borrowed Farming

For Mirror Protocol users, you might already know about Delta Neutral Farming. It is the technique to earn rewards with very low impact on principal (less than 2% on principal excluding protocol fee). You can earn very high yield with this technique (around 40%) while having similar price impact as deposit stable coin.

However, Delta Neutral Farming has a little bit complicated process, and only available with mAssets within market hours. Moreover, it requires over collateral (about 200% for safety margin) and the underlying position needs to be monitored closely.

Borrowed Farming works by borrowing assets from Single Asset vaults, user only provides UST to farm. You can farm with any assets (yes, ~400% APY SPEC vault included) at any time. You provide $100, you farm $100 ($50 UST, $50 Token) without over collateral. In addition, it requires less monitoring, auto-compound and auto-repay will improve the loan to value ratio (LTV) as you farm.

Short Farming

For Mirror users, you might already know short farming. Spectrum Short farming is similar, but not limited to mAsset. Short Farming works by depositing UST as collateral (no over collateral) and assets will be borrowed from Single Asset vaults and sell automatically to the market (Terraswap or other DEX). When closing the position, Short Farming will buy assets back and reconcile profit or loss for you.

Interest bearing collateral

When you short, UST will also be deposited into Anchor to maximize your yield and improve loan-to-value ratio over time.

Delta Neutral Farming on Spectrum?

Yes, you can also combine Short Farming and Normal Farming to do the Delta Neutral Farming on Spectrum. The result could be similar to Borrowed Farming, but Borrowed Farming will be simpler and using less capital. However, Short Farming gives you more flexibility, you can short different size and different timeframe to your long position. Therefore, you can do fine grain adjustment to your position based on your current view and market situation.

Fixed-term SPEC Staking

Thanks to our community, there are a lot of suggestions to do fixed-term SPEC staking. Fixed-term SPEC staking allows users to earn higher governance income in exchange of a withdrawal locking for a period of time. This mechanism will encourage users to hold SPEC and also reduce SPEC supply in circulation.

With this feature, there will be 5 pools of SPEC staking:

Here is the simulation with 30% Gov APR, with the assumption that people will distribute to each pool evenly.

Additional benefit for Fixed-term Staking

Borrowed Farming and Short Farming will have credit limits. With more SPEC staked and more days locked, users will unlock additional credit limits. Details will be announced later.

Conclusion

With this roadmap, Spectrum Protocol will become one-stop shop to manage your assets and maximize your investment on Terra.

Web App| Docs | Twitter | Telegram

First, we need to understand how Mirror Protocol V2 fee is distributed.

Mirror Gov distributes half of all income to voters. However, here is the trick, only 13.39% of MIR stakers on average voted after V2 launch. Effectively, earnings for voters are 83.01% and total APR for MIR stakers who vote every poll will be 94.125%!

Here is our strategy, Spectrum Protocol will automatically vote “Abstain” at near poll end, withdraw reward, and auto-stake. Huge earn within a brief period.

In case you would like to vote “YES” or “NO” on a Mirror poll, please unstake MIR from your vault, and vote at Mirror Gov.

But for now, it’s time to vote “YES” for this feature on Spectrum Protocol at https://terra.spec.finance/gov/poll/4. Stake your SPEC at Spectrum Gov and vote now!

NOTE: You can check contract changes at https://github.com/spectrumprotocol/contracts/pull/4