Overview

Spectra is an innovative, EVM-centric protocol designed to facilitate interest rate derivatives with an intuitive flagship app, enabling users to fix interest rates, trade yield, earn on liquidity, or build applications seamlessly. By leveraging yield tokenization, Spectra allows users to lock in fixed interest rates, eliminating exposure to rate volatility while earning stable returns. Liquidity providers can generate additional income by earning trading fees and extra rewards through Spectra's liquidity vaults, which offer opportunities to participate in arbitrage and optimize future yield earnings. Spectra operates as a permissionless protocol, allowing anyone to create new markets, swap yield derivatives, or contribute liquidity freely. At its core, Spectra introduces two key financial primitives, the Yield Token (YT) and Principal Token (PT), which are minted on ERC-4626 interest-bearing tokens, enabling the separation of principal from future yield. This separation opens new financial possibilities beyond traditional interest-bearing assets, allowing users to hedge against APY volatility and gain exposure to yield fluctuations. Spectra's decentralized architecture is built to permanently operate on the Ethereum Virtual Machine (EVM), providing a robust and permissionless ecosystem for fixed-rate yield strategies. The Spectra App serves as the main interface for interacting with the protocol, while Spectra Governance, powered by the APW token, ensures a decentralized decision-making framework. Spectra's pool creation mechanism allows users to initiate new pools with any ERC-4626-compatible interest-bearing token or Spectra-wrapped asset, fostering an open and inclusive DeFi ecosystem. Furthermore, Spectra introduces veSPECTR, a vote-escrowed governance mechanism that empowers token holders to participate in protocol evolution through on-chain voting. With a focus on decentralization, yield efficiency, and financial innovation, Spectra redefines how users engage with fixed-rate yield products and yield trading in DeFi.

Whitepaper & Documents