To promote the decentralized lending of its stablecoin, MakerDAO introduced Sparka new DeFi protocol from crypto loans. With this fork of Aave V3the DAI has a tailor-made solution.
The boundaries between crypto players are shrinking. Curve Finance recently got its own stablecoin. And MakerDAO is now developing its DeFi protocol of lending specially adapted for its stablecoin DAI.
The decentralized organization advertisement indeed the introduction of the version 1 of its protocol Sparka software fork of the crypto lending leader, namely Aave V3. Maker presents Spark Lend as a marketplace.
DeFi lending integrated with Maker
Its specificity: to be “ specifically designed to provide and borrow crypto-currencies, with a focus on the DAI “the 4th largest stablecoin in the market with a capitalization of $4.8 billion.
The stablecoin and its ecosystem are looking to modernize. This strategy is called Endgame (Era). The launch of Spark is part of this community-initiated transformation program.
MakerDAO says its new DeFi protocol is connected to the Maker Direct Deposit Dai Module (D3M).
This direct DAI wholesale credit line automatically injects and balances fresh DAI liquidity into Spark Lend and allows its users to access the best rates in the market.”
Savings DAI (sDAI) Token Introduction
This interconnection between Maker and Spark “ due to the direct injection of cash by Maker “also allows users to borrow ICDs from a initial annual rate of 1.11%.. And the protocol specifies that the rate remains fixed.
Another feature: Spark is accompanied by the introduction of a tokenized version of the DAI deposited in the DSR, the Savings DAI (sDAI). Note that the DeFi protocol deployed on Ethereum allows to lend and borrow ETH, stETH, DAI and thus sDAI. And why add an extra token?
Thanks to Spark Lend, users can now employ a money-making version of DAI that is automatically connected to the Dai Savings Rate module,” Maker replies.
Interconnection between Spark and PSM
And to point out that the DSR percentage return is 1%. However, this rate is subject to change through an on-chain governance vote – with direct effects on Spark Lend’s DAI rates.
Finally, Maker reports that its parity stability module (PSM) is connected to Spark. This allows the instant exchange of DAI and sDAI for USDC and vice versa at a 1:1 ratio. In addition, the “ Users can now enter the DSR from theUSDC “.
The development of the new DeFi protocol is entrusted to a new entity, Phoenix Labs. Its mission will consist more broadly in “ focus on vertical integration of existing products into Maker and on sharing the added value with developers “.
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