SPOT

Period	APY	Volatility
180 days	N/A	N/A
90 days	N/A	N/A
60 days	N/A	N/A
30 days	N/A	N/A
14 days	N/A	N/A
7 days	N/A	N/A

1. Where does the yield come from?

Trading fees. Spot is a mean-reverting asset with a wider price distribution than dollar-pegged stablecoins. For this reason, providing SPOT/USDC liquidity generates much higher trading fees through arbitrage, resulting in higher APY’s.

A wider price distribution means there's more margin for gain when users buy under the mean and sell over the mean. Spot's average mean reversion cycle is 30 days.

2. How sustainable is the yield?

Typically, high-yield stablecoin programs rely on demand for leverage to deliver yields. Borrowers pay interest on their loans and this interest is passed over to lenders. But demand for leverage disappears in bear markets, causing yields to disappear. Because Spot's liquidity provisioning yield is harvested from price volatility it can persist through sideways markets.

Spot's fees deliver through sideways markets because they are generated from natural volatility. Fees generated by lending only deliver high yields in "up-only" markets.

3. What are the risks of holding Spot?

Spot features a "bend don't break" design. That is to say, when faced with extreme market conditions, the system becomes temporarily more volatile rather than triggering bank-runs, death-spiral-minting, insolvency, or cascading liquidations.

Spot becomes temporarily more volatile in extreme market conditions, "bending" rather than "breaking"

Spot has been live for ~2 years and has functioned properly through heavy market conditions including 1) the unprecedented flash crash triggered by Trump's tariff announcements and 2) the period of persistant collateral asset selling through FTX's bankrupcy liquidations in 2024.

FAQ

1. What is SPOT?
SPOT is a low-volatility commodity-money. It's durable, decentralized, and inflation resistant, like a commodity money, only more stable. Spot can be used as a store of value and collateral asset. To learn how SPOT works see the SPOT primer.
2. Is SPOT a stablecoin?
SPOT is not a stablecoin, it does not have a peg and does not track the price of any fiat currency. SPOT is a low-volatility commodity money. SPOT is more volatile than a traditional stablecoin, but less volatile than a traditional cryptocurrency. Most notably, unlike today's stablecoins SPOT is scalable, durable, and inflation-resistant.
3. What is a flatcoin?
Flatcoin is a general term of art used to describe a new generation of stable assets that do not track the US dollar. SPOT is sometimes referred to as a decentralized flatcoin. More precisely, SPOT is a low volatility commodity money.
4. How durable is SPOT?
The SPOT token is extremely durable. Its protocol has no peg and no catastrophic breaking conditions. In extreme market scenarios the token simply becomes temporarily more volatile, bending rather than breaking.

Instead of a peg, SPOT has a bounded range of volatilies. In its typical state, where all the tranches in SPOT’s collateral set are fresh, the token is stable. But in the most extreme condition, where all the tranches in SPOT’s collateral set have matured, SPOT is precisely as volatile as AMPL.

For more context, read: The SPOT Flatcoin — A Low Volatility Derivative.
5. Why is Spot mean reverting?
Please refer to Spot Mean Reversion Cycle.
6. How quickly does Spot mean revert?
Please refer to Spot Mean Reversion Cycle.
7. Where does Spot's low volatility come from?
Please refer to Spot Mean Reversion Cycle.
8. Why should I hold SPOT?
SPOT integrates some of the best qualities of fiat monies like the dollar and commodity-monies like gold or Bitcoin. SPOT is:
- Much less inflation-prone than fiat monies
- Much more stable than commodity monies
- Similarly durable & uncensorable to commodity monies
To understand why low volatility commodity monies are important and how SPOT fits into this new asset class check out:
- The asset that's missing.
- SPOT v2 — The cost of stability.
9. What is AMPL and how does the SPOT use it?
AMPL is the underlying collateral asset that enables SPOT protocol. It is a price stable, but supply volatile cryptocurrency. AMPL's unit of account function greatly simplifies the creation of on-chain derivatives through tranching. To learn about tranching see the SPOT primer.
- SPOT — is rotating basket of Senior AMPL tranches
- stAMPL — is a rotating basket of Junior AMPL tranches
Any holder of AMPL benefits from SPOT's network growth.
10. What makes SPOT different from Ethena?
SPOT and Ethena use very different approaches. Ethena creates stability and yield through delta neutral positions across centralized exchanges. The SPOT protocol uses tranching to reorganize the volatility of a medium volatiltiy asset (AMPL) into high and low volatility perpetual derviatives. The most notable differences are:
1. SPOT is decentralized:
  There are no custodians or administrators executing trades on centralized exchanges.
2. SPOT scales naturally with demand::
  Increased demand for SPOT translates directly into increased supply of SPOT.
3. SPOT is a low volatility derivative
  Although SPOT is mean-reverting it has no peg and the protocol is happy to let prices float.
11. What makes SPOT different from DAI?
SPOT and DAI use very different approaches. DAI creates stability through liquidation markets. The SPOT protocol uses tranching to reorganize the volatility of a medium volatiltiy asset (AMPL) into high and low volatility perpetual derviatives. The most notable differences are:
1. SPOT is decentralized:
  SPOT does not rely on centralized collateral of any kind.
2. SPOT scales naturally with demand::
  Increased demand for SPOT translates directly into increased supply of SPOT.
3. SPOT is a low volatility derivative
  Although SPOT is mean-reverting it has no peg and the protocol is happy to let prices float.
Note: Liquidation market based approaches are vulnerable to cascading liquidations and are difficult to scale in general — hence their use of centralized collateral (like USDC).
12. What makes SPOT different from Terra / Luna?
SPOT is a low volatility derivative. It is a one-directional claim on a basket of collateral that has no peg and no death-spiral minting mechanics.

Instead of a peg, SPOT has a bounded range of volatilies. In its typical state, where all the tranches in SPOT’s collateral set are fresh, the token is stable. But in the most extreme condition, where all the tranches in SPOT’s collateral set have matured, SPOT is precisely as volatile as AMPL.

For more context, read: The SPOT Flatcoin — A Low Volatility Derivative.
13. What is rebasing, does SPOT rebase?
Rebasing is the process of automatically adjusting the quantity of units in user wallets based on demand. AMPL rebases, but SPOT does not.

To learn more see the official website.

For an overview of the system read the SPOT primer.

High Yield Liquidity Provisioning

APY & Volatility (SPOT/USDC)

1. Where does the yield come from?

2. How sustainable is the yield?

3. What are the risks of holding Spot?

_bootstrap(Spot)

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FAQ

1. What is SPOT?

2. Is SPOT a stablecoin?

3. What is a flatcoin?

4. How durable is SPOT?

5. Why is Spot mean reverting?

6. How quickly does Spot mean revert?

7. Where does Spot's low volatility come from?

8. Why should I hold SPOT?

9. What is AMPL and how does the SPOT use it?

10. What makes SPOT different from Ethena?

11. What makes SPOT different from DAI?

12. What makes SPOT different from Terra / Luna?

13. What is rebasing, does SPOT rebase?