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Router V2 — One Month In!

Router V2 — One Month In!

A summary on the first month of ‘Dividends’

A summary on the first month of ‘Dividends’

Spartan Protocol, as you most likely are aware, has the below emissions plan from its whitepaper:

  • 100M $SPARTA to be available through Proof of Burn, and Bond+Mint
  • 200M $SPARTA to be emitted as Liquidity Rewards

.. with a maximum supply of 300M $SPARTA (of course!)

Router V1, which granted yield to a user and required a manual harvest, was migrated to Router V2 on 7 December 2020, which injected yield directly into the Spartan Liquidity Pools based on the slippage involved in the swaps, and the pool the swap occurred on.

31 days later and the current state of ‘Dividends’ are as per the below images.

Daily Dividends, by Pool

First Month

Increased activity in the Spartan AMM Pools, which corresponds to some active marketing performed by the highly engaged Spartan Protocol community, can be seen from 19-Dec onwards. A peak dividend total was achieved on 22-Dec, where a total of 34,456 $SPARTA were minted and granted as Liquidity Rewards to Spartans holding LP Tokens.

As Dividends are paid based on swaps performed in the Spartan Pools, it’s great to see a continued increase in volume. As more depth is generated, more assets are locked (both as LP Tokens and Bonded LP Tokens) as well as more arbitrageurs recognising the opportunity this presents for higher volume swaps.

Percentage of Yield, by Pool

Unsurprisingly, the largest four pools are represented strongly in this chart.

  • BNB:SPARTA — 35%
  • BTCB:SPARTA — 19%
  • BUSD:SPARTA — 19%
  • USDT:SPARTA — 10%
Pool Breakdown

Value of Dividends by Pool

Dividends, at current $SPARTA prices, equate as per the below chart. BNB:SPARTA, as the largest and deepest pool, has the largest share of the total rewards as a result of the lower slippage fees, however, the next 5 pools have a much higher dividend to LP ratio. This presents a great opportunity for LP holders in these pools to earn a larger slice of the dividends, as well as a great opportunity for Bond+Mint in the BTCB, BUSD and USDT pools.

1.4M $SPARTA remains available as a free reward for Bonding your BTCB, BUSD and USDT into the Pools, and provides you with a linear release of your locked liquidity over a 12 month period.

All up, a total of 235,054.2 $SPARTA at a current valuation of USD $43.6K was emitted during the month period.

Over a 12 month period, at this rate, over $500K p.a. will be shared amongst LP holders, however, we expect that figure to increase (along with our TVL) particularly once DAO and Synths go live. We expect many more users to lock liquidity into the pools for minting/lending purposes.

What’s next, specifically for Spartan Protocol in the way of Dividends?

Of course, we will never sit still and say we are done with any component of our Protocols.

  • Continued development of Router V3
  • Review of dividends to assess true APY for each pool
  • Adjusting of the emission ratios to ensure that the Yield generated remains healthy and attractive to potential liquidity providers
  • Handing over control of this feature to the Spartan DAO

Community Contribution

Spartan Protocol is at its core a community-driven and led project. In this vein, the more contributors the better. There is a great opportunity for community members to contribute by making LP reward analysis tools, contributing code, graphic design, etc.

If you have an idea, share it in the community channels.

Engage with the community and developers

Where to find out about all the latest updates or suggest improvements — get involved.