What Is Spectrum Token (SPEC)?
Spectrum Token is an Innovative, Decentralized Yield Optimizer platform that allows users to earn compound interest on their crypto assets farming. With various investment strategies secured and governed by smart contracts, Spectrum Protocol automatically maximizes rewards from various liquidity pools (LPs) and other yield farming products in Terra ecosystem. Any SPEC holders can create proposals, and any SPEC stakers can participate in voting.
The main product offered by Spectrum Token is the Vaults which you can provide liquidity or stake your cypto tokens (SPEC, MIR, ANC, mAssets, etc.). Users can choose auto-compound investment strategy so the vault will automatically increase your deposited token amount by compounding yield farming rewards back to your initially deposited LPs or auto-stake strategy so the vault will automatically stake rewards to the respective governance stake to further increase the amount of rewards.
In addition to yield rewards, Spectrum Protocol also provides Spectrum rewards to users. Users can stake SPEC tokens in Spectrum governance staking pools to earn revenue sharing from Spectrum Token. Spectrum is fully Decentralized Autonomous Organization (DAO). There is no privileged access, all changes must be done through voting. People can track changes and be aware of changes (voting period for 7 days and time lock for 1 day).
Spectrum Token Storage Key Points
|Coin Name||Spectrum Token|
|Circulating Supply||9,467,723.09 SPEC|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
The security of the Spectrum Token is top priority. Your team, alongside third-party auditors and consultants, has invested considerable effort to create a protocol that believe is safe and reliable. All smart contracts, web app code, and balances are publicly available and verifiable. You can review the transparency section for more details.
- Developers would like to have SPEC tokens to facilitate platform launch and protect from malicious polls on low TVL.
- This created unfair launch because developers could potentially dump all tokens to earn money.
- TVL is also inaccurate.
- Vault fee APR which should belong to community is very low because of the fund staked in Gov.
- Spectrum Token created a locked contract to govern the fund. This contract is allowed to withdraw with condition. The development fund will be frozen for 50 days after project launch (until all vaults’ rewards for users are unlocked) and release at the fixed rate over 3 years.
- The fund will stay unstaked from Gov. However, when there is a poll, developers will be staked into Gov smallest amount as possible, and do the vote. After poll end, the fund will be unstaked from Gov again.
- Owner of the locked contract is Gov. Developers have no permission to change as the changes need to be done through Gov.
What is the different between APR and APY?
APR (Annual Percentage Rate) is the yearly interest rate without compounding investment profits to the original principal. If you invest $100 with 50% APR, you will earn $50 profit in a year. Spectrum Token is the yearly interest rate with compounding effect that occur from the reinvestment of profit regularly. For example, if you invest $100 with 50% APR and compound your profit every day, you will earn $64.82 profit in a year or 64.82% APY. You can use APR to APY calculator to calculate the APY with different APR and compounding frequency. Learn more about simple and compound interest from Investigator’s article.
Why the APR is so high?
The majority of APR is from the value of SPEC rewards released at fixed rate (2.5 per block) to every vaults and it will be declined over time as amount of LPs and number of vaults are growing. The fees will be used to buy back SPEC to create buying pressure and maintain the SPEC price.
What is the different between auto-compound and auto-stake?
With auto-compound, Spectrum Token help you to collect MIR rewards, and automatically reinvest for you (Your LPs will be increased). For auto-stake, Spectrum collect MIR rewards and auto-stake MIR rewards into Mirror Gov (Your MIR rewards will be increased). You will receive SPEC rewards (with auto-stake) for both strategies. You can also mix between two strategies by provide different portion of LPs.
What is the roadmap of Spectrum Protocol?
They have many things that want to do and they plan for the long term. Please check your Spectrum Token the yield optimization for Mirror Finance. Imagine the light reflected from Mirror as your single reward, they want your platform to refract that reward into a wide range of spectrum hence the name Spectrum Protocol.