What is Spark (SPK)?

Jakarta, Pintu News – Spark is a newly launched Decentralized Finance lending and borrowing platform based on the Ethereum blockchain and integrated in the MakerDAO ecosystem.

The platform is designed to increase the efficiency and profitability of transacting with stablecoins, especially DAI. By using Spark’s native token (SPK), users can enjoy various functions such as staking, governance, and farming.

Check out more information about Spark in this article!

Spark and its Ecosystem

Spark was created by Phoenix Labs as part of the MakerDAO ecosystem, now known as the SKY ecosystem. The protocol adopts the Aave V3 model to support collateral in the form of Ethereum and stETH.

Spark offers full transparency and decentralized governance, enabling on-chain liquidity allocation across DeFi, Centralized Finance (CeFi) and real assets. The main goal of Spark is to optimize DeFi lending through efficient capital allocation, provide transparent interest rates and improve liquidity for DeFi users.

Spark Fi allows users to deposit assets such as Ethereum (ETH) or DAI into SparkLend to earn interest. The deposited assets are then polled and made available to borrowers.

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Users can borrow assets such as USDS by providing collateral in the form of ETH or other accepted assets. The applicable interest rate is designed to be dynamic, adjusting to supply and demand to maximize returns for investors.

Spark Main Products

Spark offers savings accounts where users can deposit stablecoins and receive USDS tokens (sUSDS). This sUSDS token represents the user’s share of USDS in the Sky Savings Rate. A user’s sUSDS value will increase as their savings grow.

The Sky Savings Rate offers a higher yield compared to the regular DAI Savings Rate. SparkLend is a decentralized, non-custodial market protocol designed to provide liquidity for Spark’s Lending products.

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Users can join SparkLend as both borrowers and lenders. Lenders earn passive income by providing liquidity, while borrowers can access over-collateralized crypto loans and perpetuity through DeFi.

Spark Liquidity Layer

The Spark Liquidity Layer is a function designed to provide liquidity from Sky in the form of USDS, sUSDS, and USDC to blockchain networks and other DeFi protocols. Users participating in this segment earn Sky Savings Rate via sUSDS on their chosen network.

In addition, this functionality allows Spark to provide liquidity to the broader DeFi market for additional yield. SLL is a cross-protocol and multi-chain function that facilitates Spark-directed liquidity allocation to all major lending markets.

Conclusion

Spark Finance represents a dynamic evolution of DeFi, introducing an innovative approach to managing loans and lending that marks a complete disruption to the current DeFi paradigm.

The transition towards a design that incorporates new parameters signifies the potential ability of the Spark Protocol to create a new way of finance that overcomes existing challenges and pushes the decentralized finance story closer to widespread adoption.

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• NFT Evening. What is Spark Protocol? Accessed on June 19, 2025
• Featured Image: Metaverse Post