Members of the MakerDAO community have proposed the creation of Spark Protocol, a crypto asset lending and borrowing market centered around $DAI. The proposal, which was posted in Maker's governance forum on Wednesday, outlines the launch of the first product, Spark Lend.
Spark Lend will allow users to borrow $DAI at the current DAI Savings Rate of 1% and support highly liquid decentralized assets as collateral, such as $ETH, $DAI, and wrapped derivatives of staked $ETH (wstETH) and $BTC (wBTC). Future updates include fixed-term yield products and the integration of Maker's synthetic liquid staking derivative (LSD), EtherDAI.
The launch of Spark is scheduled for April, with a $200 million debt ceiling, according to the proposal. The Spark protocol will use the smart contract system of Aave v3, and the developer team Phoenix Labs will send 10% of Spark Protocol's profits on the $DAI market to Aave DAO over the next two years in exchange.
The Spark Protocol proposal is led by Phoenix Labs, a newly formed company consisting of key figures in the MakerDAO developer community. The Spark protocol will be fully owned by the Maker community, with the possibility of being transitioned to one of the SubDAOs as part of Maker's ambitious "Endgame plan."
The implementation of Spark Protocol is subject to a vote by the Maker community.
Lending
DeFi
