Ethereum

Maker

Chainlink

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 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
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<p class="has-drop-cap">MakerDAO, one of the largest decentralized autonomous organizations on the Ethereum blockchain, <a href="https://twitter.com/MakerDAO/status/1655575088547127311" target="_blank" aria-label=" (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">announced</a> on Monday, May 8th, it is launching the Spark Protocol for its users. The lending solution will be available from May 9th. Its first version is specifically designed for Maker’s DAI stablecoin.</p> 
<h3 id="makerdao-to-launch-spark-protocol-on-may-9th">MakerDAO To Launch Spark Protocol on May 9th</h3> 
<p>This Monday, MakerDAO announced the launch of its Spark Protocol. In the Twitter thread, Maker describes Spark as a lending marketplace and explains that its first version has been specifically designed for the DAO’s DAI stablecoin. The protocol is intended to enhance the coin’s liquidity, and lending capability, and offer a yield-bearing version.</p> 
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   <p lang="en" dir="ltr">Spark Protocol's first version, Spark Lend, is a lending marketplace specifically designed for supplying and borrowing crypto with a focus on DAI.<br><br>Its users will be able to interact with Spark's front-end directly, connecting Maker's liquidity with a complete DeFi solution.</p>— Maker (@MakerDAO) <a href="https://twitter.com/MakerDAO/status/1655575092124958726?ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">May 8, 2023</a>
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<p>Maker also stated that Spark is connected to DAI’s D3M (Direct Deposit Dai Module) enabling it “direct wholesale credit line” and allowing it to automatically provide additional liquidity to Spark Lend. The DAO also stated that the interest rate will not be increasing with utilization and will have an initial annual rate of 1.11%.</p> 
<p>The Spark Protocol is also connected to Maker’s PSM (Peg Stability Module) allowing for greater liquidity due to the instant both-way swapping of USDC for DAI and sDAI at a 1:1 rate. The Spark Protocol is set to become available to users on Tuesday, May 9th.</p> 
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<h3 id="makerdao-s-recent-enhancements">MakerDAO’s Recent Enhancements</h3> 
<p>MakerDAO has recently made numerous decisions aimed at improving its ecosystem. Last October, it voted to move 33% of the $1.6 billion Peg Stability Module to Coinbase’s custody to help earn better yield.&nbsp; Additionally, in early 2023, it decided <a href="https://tokenist.com/makerdao-elects-to-move-up-to-500m-usdc-to-coinbase-in-landslide-vote/" rel="dofollow" class="deco-link">to transfer an additional $500 million USDC</a> to the exchange after a landslide vote.</p> 
<p>It also remained committed to its long-standing relationship with the exchange and the USDC stablecoin even after the <a href="https://tokenist.com/sec-alleges-coinbase-violated-security-laws-delivers-wells-notice/" rel="dofollow" class="deco-link">recent regulatory turmoil surrounding Coinbase</a>. In late March, it <a href="https://tokenist.com/79-of-makerdao-members-vote-to-keep-reserves-in-usdc/" class="deco-link">voted with a 79% majority</a> to keep most of its reserves in it instead of further diversifying.</p> 
<p>In February, it also decided to improve its Keeper Network <a aria-label=" (opens in a new tab)" href="https://www.prnewswire.com/news-releases/makerdao-integrates-chainlink-automation-to-enhance-dais-financial-stability-301743161.html" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">by integrating a Chainlink Oracle</a>. A blockchain oracle represents a way for it to access off-chain, real-world data. The move was explained as a way to boost Keeper Network’s ability to maintain the health and stability of DAI.</p> 
<p><em>Editorial note (May 9th, 2023, 11:58 AM EST): The headline was altered for clarity.</em></p> 
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<p><strong><em>What will MakerDAO’s next addition be? Tell us what you think in the comments below.</em></strong></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/makerdao-introduces-spark-defi-lending-protocol-for-its-dai-stablecoin/">MakerDAO Introduces Spark DeFi Lending Protocol For DAI</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

MakerDAO Introduces Spark DeFi Lending Protocol For DAI

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