Plain English
Spark Protocol is MakerDAO’s in-house lending protocol, launched in 2023. Built on a fork of Aave v3 codebase but tightly integrated with MakerDAO/Sky’s tokenomics — particularly DAI/USDS supply and the DSR (Dai Savings Rate) mechanism. SPK token launched in 2024.
How it actually works
Spark accepts standard collateral (ETH, stETH, wBTC) and lends DAI/USDS at a managed rate. Excess DAI from MakerDAO can be deployed into Spark to generate revenue rather than sitting idle. Spark also operates sUSDS — staked USDS — providing the DSR yield to users without smart-contract complexity.
What it means for you
For HNW users holding DAI/USDS, Spark is the primary integrated yield venue. The sUSDS savings rate is one of the cleanest stablecoin yields in DeFi — fully backed by MakerDAO’s real-world asset and DeFi revenue. For DAI borrowers seeking lower rates than Aave or Compound, Spark frequently undercuts both.
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Educational content only. Not investment, tax, or legal advice.