Sphere Finance Hosts Two AMA’s Introducing Perpetual APY and Galaxy Bonds
Sphere Finance held an two additional AMA’s that featured its creator and developer Simsala and other individuals behind the project. The goal of the AMA was to introduce investors to two of the newest components to Sphere, Perpetual APY and Galaxy Bonds.
After an AMA last week, there was initially some confusion regarding how Perpetual APY works and it caused some panic in the community, as the concern was APY would be reduced significantly or go away entirely. The 1.91 fixed APY was an attractive component to investors. Without the high daily APY, which some people concluded was being taken away, investors pulled out of the project.
The two new AMA’s immediately resolved these concerns, seeing investors pumping back into the project. We’re going to cover these two huge positives for Sphere, which are Perpetual APY and Galaxy Bonds.
The issue with current APY in most projects is that protocols really doesn’t care what happens. These APYs could go on forever, but will they be able to actually back the tokens and pay out for each and every one of them. The simple answer is no. Perpetual APY changes this.
Perpetual APY means the APY will always be sustainable and dynamic to what the market says about the project.
The APY can increase as more people sell, then decrease as more people buy. It will adjust to always be sustainable. There is no inflation from the APY any longer. It is fully backed by the revenue from the protocol. There is nothing out there like it. The best way to think of Perpetual APY is a scale. On one side you have, “a lot of buys which will result in a lower APY because it is unnecessary to have a high APY and inflate if you you have heavy price appreciation.” On the other side of the scale you have a lot of sales, which, “means less people are in the protocol and more to distribute from the treasury,” therefore causing the APY to go back up. This is a constant balancing mechanism that will create a daily APY that is sustainable.
Honestly, SPHERE wants to actually back it’s APY, not create an arbitrary number just to attract investors and then fail. This creates a long-term, daily return on the project, solving the inflationary problem that other projects run into.
Sphere will continue the fixed, 1.91 daily APY for approximately 100 days and then move to the Perpetual APY. This will come with v2 of the project.
Another benefit of the Perpetual APY is that it’s actual backed and stabilized. The best explanation of Perpetual APY is in the graphic below, which was supplied by Sphere.
Galaxy Bonds is a revolutionary concept in DeFi that creates the opportunity and a benefit for large Sphere token holders to exit the project with limitations while receiving a reduced tax rate that allows them to create liquidity. The Sphere is then sold to new holders (or buyers) at a discounted rate. This eliminates whales from hurting the price of Sphere with large withdraws.
The other benefit is that it encourages buyers to eat up these tokens at a discounted rate.
But the biggest benefit is that it is deflationary. How? With traditioanal bonds, additional tokens are created and causing inflation and injuring the ability of the token to increase in price. Also with traditional bonds, it reduces the overall stake of holders because more people are entering the project with new tokens.
Galaxy Bonds will benefit the community and help create long term stability.
Check out the AMA below on Galaxy Bonds. Really, it’s a revolutionary concept in rebase tokens to prevent and control inflation.
Ultimately, Sphere Finance is moving to dominate many, many chains, while creating long-term investment and wealth for its community. Sphere is acquiring and creating positions to generate strong, aggressive growth with the desire to become a top-ten cryptocurrency.
The introduction of Perpetual APY and Galaxy Bonding are huge mechanisms to reduce inflation, create stability, and pump the price over the long-term.
To learn more, visit Sphere Finance.
To track $SPHERE, visit here.
Join the Sphere Community on Discord, visit here. The original AMA, announcing Perpetual APY is below.
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