Hire a professional hacker here atTheHackersPro!
TheHackersProTheHackersProTheHackersPro
(Monday - Sunday)
Submit request
TheHackersProTheHackersProTheHackersPro

MakerDAO introduces Spark Protocol for DeFi lending

Palmswap v103

MakerDAO, a leading decentralized autonomous organization (DAO) on the Ethereum blockchain, announced the launch of its Spark Protocol on May 9. The lending platform aims to enhance the liquidity and yield-bearing capabilities of its DAI stablecoin. 

In a Twitter thread on May 8, Maker outlined Spark as a lending marketplace designed to boost DAI’s liquidity and lending capability and offer a yield-bearing version. 

The protocol is linked to DAI’s direct deposit DAI module (D3M), providing it with a direct wholesale credit line and enabling it to supply additional liquidity to Spark Lend automatically.

Maker further indicated that the interest rate would remain steady at an initial annual rate of 1.11%, regardless of utilization.

The Spark Protocol is linked to Maker’s peg stability module (PSM), allowing for more liquidity due to instant both-way swapping of USDC for DAI and sDAI at a 1:1 rate. 

The protocol is part of MakerDAO’s Endgame plan, which aims to make DAI a free-floating asset initially collateralized by real-world assets (RWA).

Under this plan, DAI will remain pegged to the dollar for three years, and MakerDAO will accumulate as much ethereum (ETH) as possible to increase the ratio of decentralized collateral.

MakerDAO’s recent developments

MakerDAO’s recent decisions include moving 33% of its peg stability module to Coinbase’s custody and transferring an additional 500 million USDC to the exchange, aiming to improve its ecosystem.

MakerDAO also remains committed to its relationship with Coinbase and the USDC stablecoin, even after regulatory turmoil.

DAI is the industry’s largest decentralized stablecoin, with a circulating supply of $4.7 billion and a market share of 3.6%. However, DAI supply has declined by 53% since its peak of almost $10 billion in February 2022.

MakerDAO introduces Spark Protocol for DeFi lending - 1
MKR/USD 24hr price chart | Source: CoinMarketCap

MakerDAO’s native token, MKR, fell 1.3% on the announcement day, trading at its lowest level for over a month. Furthermore, MKR is down 89% from its May 2021 all-time high of $6,292, with only just over 900,000 MKR in circulation.


Follow Us on Google News

Leave A Comment

Professional hackers for hire at TheHackersPro

(Sat - Thursday)
(10am - 05 pm)

Subscribe to our newsletter

Sign up to receive latest news, updates, promotions, and special offers delivered directly to your inbox.
No, thanks