Different types of SAP
Index-tracking SAP
This kind of SAP is open-end.The manager, in advance, selects or creates an index to follow. Then the distribution of tokens in the pool would be adjusted by transaction in DEX automatically or manually.
By hedging the non-systematic risk through various tokens, users with low-risk preference could earn yield from this growing cryptocurrency market.
Trader-based SAP
Trader-based SAP pools, in contract with index-tracking pools, is close-end. Besides setting a whitelist, managers also need to set a max value of the pool according the level and performance of the manager.
All the tokens raised would be confined in the smart contract. The manager has only the access to trade these tokens in the DEX, according to the his/her research of valuation.
At the end of each period, a liquidation process will begin. 30% of the profit would be used to reward the manager and the foundation; the rest 70% belongs to the SAP holders and can be claimed or reinvested in the pool by holders. If any period has no profit or suffers a loss, the manager and the foundation will have no gain. The reward for foundation will be used to repurchase and burn governance token SYP.
Users can only mint and burn SAP during the liquidation period. During the locking period, if SAP holders wish to cash out, SAP tokens could be traded in the secondary market, or used as collateral.
Assets-backed quantitative trading SAP
Few attempt trying to bring quantitative trading to DEFI has succeed because of the trading requirements. Since DEX couldn’t fulfill the needs, CEX is the only choice left for now. But the obstacle is how to keep investor’s asset safe and information transparent. This protocol guarantees trading requirement by cooperating with CEX and ensures safety by collaterals or by CEX credits.
Mode 1 staking & CEX custodial
To launch this type of pools, manager needs to stake governance token SYP as collateral. These SYP also shares the farming reward with other stakers.
Once minted, this kind of SAP tokens couldn’t be burned and redeemed during a certain period, but SAP could be traded or leveraged in the secondary markets.
Tokens raised will be trading quantitatively in a CEX. The total value and every SAP’s value are calculated and presented everyday.
Mode 2 CEX’s credit Mode
Quant SAPs are launched in the protocol, and investors’ tokens are kept in the protocol. Managers need to apply for a CEX’s credit and transactions are executed by the credit throughout the day. At a certain time everyday, sypool’s protocol will make liquidation with the CEX by gaining the profit or pay the loss.
Structured Yield Fund
Structured Yield SAP tracks the performance of other SAP or index, but the returns for each rank are varied. It enables users to select different risk level from R1 to R3 (and mint different fund share token SAP-R1，SAP-R2，SAP-R3). Let the risk deserve the yield.
Index loss (-100%, -34%)
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-
-
Index loss (-34%, -14%)
10%
(-100%, 0%)
-100%
Index gain (-14%, -6%)
10%
0%
(-100%, 0%)
Index gain (6%, 14%)
10%
(0%, 20%)
(0%, 20%)
Index gain (14%, +∞)
10%
20%
(20%, +∞)
If the Index loses near 34%, the pool will stop trading and be liquidated.
SAP-backed Stable Coin SAI
The mechanism of SAI is based on over-collateralization and liquidation-auction system.
By staking SAP in the protocol, stable coin is generated and viewed as holder’s debt to the protocol. The collateral rate is 300%. When the value of SAP decease and the collateral rate reaches 250%, a warning message will be sent to the SAI holder.
The holder could add more SAP or return some SAI in that case to decrease the debt. However, if the collateral rate gets 200%, a liquidation process will be triggered and an auction of the collateral will begin. All the debt will be liquidated by selling the least collateral. After the auction, the SAI will be destroyed and the rest SAP will be returned.
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