MakerDAO developers have launched Spark Protocol, a liquidity marketplace based on the DAI stablecoin and assets backed by a DeFi platform.
Announcing the Spark Protocol launch ⚡️
Starting May 9, 2023, Spark Protocol will be available to all DeFi users.
An end-user, DAI-centered DeFi product deployed on Ethereum with supply and borrow features for ETH, stETH, DAI, and sDAI. pic.twitter.com/oLa8oeBmL1
— Maker (@MakerDAO) May 8, 2023
Spark Protocol is set to be the first native Maker-powered landing interface. A DeFi platform can generate an additional revenue stream by lending to its users as part of its reserve asset strategy.
Spark Protocol operates independently from MakerDAO.
“The first version of the Spark Protocol, Spark Lend, is a market for lending […] with a focus on DAI”, developers said
The functionality of the solution is based on the third version of the smart contract system of the Aave project.
Aave launched the third version of the protocol on January 27, 2023. According to the creator of the platform, Stani Kulechov, she received many new risk mitigation features, as well as increased capital efficiency and decentralized liquidity while lowering gas costs.
Initially, users will be able to borrow DAI at an annual rate of 1.11%.
- wstETH from Lido;
- Savings DAI (DSR-locked DAI).
Spark Land interest rates are set by community members through voting. This distinguishes the project from competitors, where they are formed under the influence of supply and demand.
The protocol is integrated with PSM MakerDAO. This will instantly convert DAI and sDAI to USDC at a 1:1 ratio.
As a reminder, in the future, the Spark Protocol is expected to include farming products with a fixed expiration date and a native synthetic derivative of liquid staking called EtherDAI.
The next steps in the roadmap for 2023 include the addition of manipulation-resistant oracles, fixed rates – Spark Fixed Rates, support for L2 solutions and side chains.
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