• MakerDAO has announced the launch of its lending and borrowing protocol, Spark.
• The Spark Protocol’s first product is Spark Lend which provides users access to competitive interest rates.
• The protocol also offers a tokenized version of the DAI stablecoin deposited in the DAI Savings Rate (DSR), sDAI, with yields starting at 1.1%.
MakerDAO Launches Spark Protocol
Decentralized Finance (DeFi) pioneer MakerDAO has announced the launch of its lending and borrowing protocol, Spark. The new protocol’s initial iteration will function as a lending platform and allow users to lend and borrow ETH, DAI, stETH, and sDAI.
Features Of The Spark Protocol
The new protocol is specifically designed for the DAI stablecoin and gives users and holders access to competitive interest rates. It is linked to Maker’s D3M (Direct Deposit DAI Module). As a result of this link between Spark Protocol and the Direct Deposit DAI Module, users can borrow the DAI stablecoin at competitive rates at an initial annual rate of 1.11%. It also introduces a tokenized version of the DAI stablecoin, which is deposited in the DAI Savings Rate (DSR). The tokenized version is called sDAI.
Focus On Stability
Maker has focused on providing stability, liquidity, and significantly lower risk while offering yield-bearing products like sDAi with low yields starting from 1.1% only. Furthermore, it utilizes a Peg Stability Module that helps to connect the liquidity infrastructure and offers instant swapping of DAI and sDAI for USDC.
Endgame Plan
Spark Protocol has been launched as part of Maker’s endgame plan that includes providing users access to improved rates along with yield-bearing versions of their assets such as ETH, stETH or even Dai itself by leveraging both open finance protocols as well as existing financial infrastructures like banks or traditional markets when needed.
< h 2 > Conclusion In conclusion , Maker ’ s new initiative , Spark Protocol , promises to significantly improve DeFi user ’ s lending capabilities by introducing competitive interest rates . Its features ensure greater liquidity options along with improved stability through its Peg Stability Module . Lastly , its Direct Deposit Dai module ensures fresh Dai liquidity into spark Lend enabling DeFi users to access best market rates .