MakerDAO has unveiled a DeFi lending platform called Spark. It is based on the Aave V3 protocol and promises unique lending solutions for the DAI stablecoin.
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
Unlike the underlying MakerDAO engine, which allows you to generate new DAI as collateralized debt, Spark will offer you to borrow DAI using assets such as ether (ETH), staked ether (stETH), and DAI itself.
The first version of the Spark protocol is called Spark Lend. It is a lending market focused on collateralizing and lending cryptoassets with a focus on DAI. The platform is available to all DeFi users from today.
An interesting feature of Spark is the non-standard interest rate model. Loan interest is set by board members through online voting rather than fluctuating based on supply and demand, as is the case with Aave or other lending protocols.
Initially, borrowers can take out DAI loans at an annual rate of 1.11% through Spark.
Spark is also integrated with the MakerDAO Peg Stability module, which provides instant conversion of DAI to USDC at the rate of 1:1. Spark was developed by Phoenix Labs, which works with MakerDAO.
Source: Cryptocurrency
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