MakerDAO launches Spark Protocol, a new DeFi lending solution for DAI users
MakerDAO, a decentralized autonomous organization that operates on the Ethereum blockchain and issues stablecoin DAI, has announced that it has launched the Spark Protocol, a lending solution for DAI users.
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
According to the Twitter announcement, the first version of the Spark Protocol will act as a “lending marketplace,” providing users with supply and borrowing features for cryptocurrencies such as Ether (ETH), staked Ether (stETH), DAI (DAI), and staked DAI (sDAI). The platform is specifically designed for DAI and aims to provide users with access to competitive interest rates.
The Spark Protocol is also linked to Maker’s D3M (Direct Deposit Dai Module), a system that enables interaction between the Maker ecosystem and third-party lending pools. The link between Spark Protocol and Maker’s D3M seeks to enable users to borrow DAI at more competitive rates, with an initial annual rate of just 1.11%.
Regarding the connection between Spark Protocol and Maker’s D3M, the announcement noted: “This direct wholesale credit line in DAI injects and automatically balances fresh DAI liquidity into Spark Lend and enables its users to access the best rates in the market.”
Ultimately, the Spark Protocol lending solution promises to enhance MakerDAO’s DAI lending capabilities, increase liquidity, offer users improved rates, offer a yield-bearing version of DAI and provide more liquidity options.
Related: MakerDAO votes to keep USDC as primary collateral, rejects
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