Spectrum Protocol — The 2nd Roadmap

Source: https://defillama.com/protocol/spectrum-protocol
  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.

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.

Comparison between Delta Neutral Farming and Borrowed Farming

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.

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.

(Illustration only, actual APR% could be vary based on SPEC price, income, and amount on each pool)

Conclusion

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