Last year, MakerDAO, a decentralised autonomous organisation that operates on the Ethereum blockchain and issues stablecoin DAI, launched the Spark Protocol, a lending solution for DAI users.

What is a DAI?

DAI is an ERC-20 token designed to maintain a stable value of 1:1 with the U.S. dollar by securing various crypto assets in smart contracts. It is the first decentralised, collateral-backed, stable cryptocurrency.

Unlike other stablecoins, which are managed by a central entity, DAI is the native token of the Maker Protocol, a decentralised autonomous ecosystem of smart contracts operating on the Ethereum blockchain.

Spotlighting The Spark Protocol

The Spark Protocol provides users with supply and borrowing features for cryptocurrencies such as Ether (ETH), and staked DAI (sDAI). The platform is specifically designed for DAI and aims to provide users with access to competitive interest rates.

Spark is on a mission to empower the DAI ecosystem as part of the MakerDAO community.

Defi Infrastructure

SparkLend: The DAI-centric money market protocol. Combining the best liquidity directly from Maker and vertically integrating with the best DeFi protocols.

sDAI is a yield-bearing stablecoin that represents DAI in the Dai Savings Rate (DSR) module. This module distributes revenue from the Maker protocol to DAI holders.

SparkConduits allow for direct liquidity from Maker to protocols as part of the overall Maker Allocation System.

The Spark App

The Spark App can be accessed at app.spark.fi, and it consists of four main sections:

Borrow -The application's landing page hosts the Easy Borrow Flow, which enables you to borrow Dai using crypto assets as collateral. This section is focused only on Dai borrowing.

Dashboard - Shows the state of your borrowing and lending position. On the Dashboard, you can also manage lending and borrowing positions for any supported asset.

Cash & Savings - Enables you to deposit stablecoins to earn savings such as Savings Dai (sDAI)

Markets - This section gives an overview of the total state of the supported lending markets, such as total liquidity and total borrows. It offers detailed information for each market and the option to enter the markets.

A look at what the spark protocol achieved in its first year

Conclusion

Through Spark Cash & Savings, Spark is revolutionising and vastly simplifying non-custodial stablecoin management. The new platform offers a native crypto savings account, enhancing user earnings directly from Maker Protocol’s system revenue. This unique feature, combined with the platform’s ease of access to stablecoin savings, sets it apart in digital asset savings.

Spark is best known for building SparkLend, a decentralised non-custodial liquidity market protocol with $3 billion USD in TVL.

For more information about Spark, visit spark.fi, Discord, or Twitter.