Spectra - The new entry window to Sceptre’s sFLR (Tools, Rewards & More)

Spectra, the permissionless yield-trading protocol, is now deployed on Flare with an sFLR pool at launch.

This integration gives sFLR holders entirely new tools: fixed-rate income, leveraged yield exposure, and the ability to become a liquidity provider to an sFLR pool with multiple reward streams - including extra rFLR.

In this article, we’ll break down what this means for Sceptre users, why it matters for the Flare ecosystem, and how to begin exploring these opportunities.

What Spectra does, in plain language

Spectra enables new behaviors for yield-bearing tokens like sFLR by separating the token into two components:

• Principal Tokens (PT-sFLR) → fixed-rate exposure

• Yield Tokens (YT-sFLR) → variable-rate exposure

• This split allows users to shape how they want their sFLR exposure to behave over time.

For the Sceptre community, this unlocks 3 new venues:

• predictable sFLR redemption at a future date (PT)

• amplified exposure to sFLR’s native rate and rewards (YT)

• the ability to support both sides of the market by supplying liquidity (LP)

In the Spectra App, each of these venues can be easily accessed via the menu.

The LP Opportunity: the easiest way to use sFLR on Spectra

For many users, becoming a liquidity provider (LP) in the sFLR Spectra pool is the most intuitive entry point.

You supply sFLR-based liquidity → your position reflects multiple components that shape its overall performance over time.

sFLR Pool rate as of December 5th - subject to market and rewards conditions

1. sFLR Exposure - You keep exposure to sFLR’s native rate through the interest-bearing token inside the pool.

2. PT Fixed-Rate Component - Part of the pool is held in PT-sFLR, which carries a fixed APR until maturity. Your LP token reflects this fixed-rate element based on pool composition.

3. Swap Fees - Every PT and YT trade contributes fees to the pool, increasing the value of LP tokens over time.

4. rFLR Incentives - Direct rFLR incentives to LPs, shown directly in the Spectra interface and claimable via the Flare’s Portal: https://portal.flare.network/

5. SPECTRA Emissions (with Gauge) - If a gauge is active for the sFLR pool, LPs can also receive SPECTRA rewards.

LPs in the sFLR Spectra pool hold a position that blends sFLR rate exposure + PT fixed rate + swap fees + rFLR incentives + optional SPECTRA emissions — all inside a single LP token.

Liquidity providers are the backbone of sFLR on Spectra, allowing traders to obtain Principal and Yield Tokens, which we’ll describe in the following chapters.

Click here to explore the sFLR Pool.

Fixed Rates: predictable sFLR redemption at maturity

Fixed Rates are designed for users who prefer clarity around future redemption amounts.

Illustrative example:

Provide 100 sFLR today → Redeem 110 sFLR at the pool’s maturity date

This happens through PT-sFLR, which can be acquired at a discount relative to its future redemption value.

Why this may be useful:

• Clear understanding of how many sFLR units you will redeem later

• No sensitivity to short-term fluctuations in the Base APY

• When market activity increases on the YT side, PT-sFLR prices can become more attractive

Important considerations:

• PT outcomes are based on holding until the maturity date

• PT exposure is expressed as APR, since it does not compound

• Liquidity conditions determine how easily PT-sFLR can be exited early

Click here to explore the sFLR Fixed Rate Opportunity.

Yield Leverage: amplified exposure to sFLR’s native rate

Yield Tokens are for users who want higher sensitivity to sFLR’s native rate or ecosystem incentive flow.

Illustrative example:

Provide 100 sFLR → gain exposure equivalent to 1,000 sFLR = 10× leveraged rate exposure.

YT-sFLR grants access to the ongoing rate produced by the underlying sFLR source as well as any associated ecosystem reward structures, such as rFLR.

Why this may be useful:

• Increased exposure to future FlareDrop emissions patterns

• Increased exposure to staking rewards

• Increased exposure to delegation rewards

Important considerations:

• YT-sFLR market value decays toward 0 at maturity

• YT’s claimable yield is subject to ongoing yield output and periodic injections of e.g. FlareDrop at the beginning of each month

• YTs can be transferred back into pool liquidity at any time into available liquidity

Click here to access Yield Leverage.

What this means for Sceptre and the Flare Ecosystem

For sFLR users

• Clear future sFLR redemption tool via fixed-rate exposure

• Higher-sensitivity YT positions for users anticipating changes in the sFLR rate

• Greater flexibility in shaping exposure profiles

• Access to a greater number of yield sources as sFLR liquidity provider

For Sceptre

• Expanded utility for sFLR

• Emergence of more advanced exposure strategies for the community -> e.g. PT looping strategies

• Stronger liquidity depth around sFLR

For the Flare Network

• Introduction of structured rate-based markets

• More efficient liquidity layers

• A maturing ecosystem with broader tooling for builders and users

Spectra transforms sFLR from a passive yield-bearing token into an active exposure market, allowing users to choose between predictable outcomes, amplified rate sensitivity, or liquidity-backed strategies. You can stay up to date with all things Spectra by following the platform on X, and with Sceptre by following us on X, Telegram and Discord.