Question 1

What is Spark Protocol?

Accepted Answer

Spark Protocol is the DeFi lending and liquidity platform built within the Sky (formerly MakerDAO) ecosystem. It lets users borrow USDS/DAI against crypto collateral at competitive rates, earn savings yield through sDAI/sUSDS, and access cross-chain liquidity. Think of it as MakerDAO's direct-to-user lending front end.

Question 2

How is Spark different from Aave or Compound?

Accepted Answer

Spark is built on Aave V3's smart contracts but operates as its own protocol with key differences: it offers the Sky Savings Rate (currently ~6-8%) directly, it has privileged access to DAI/USDS minting from MakerDAO, and its rates are governed by Sky DAO rather than pure market dynamics. This means Spark can offer rates that Aave cannot.

Question 3

What is the SPK token?

Accepted Answer

SPK is Spark Protocol's governance token, launched as part of MakerDAO's Endgame plan to create independent SubDAOs. SPK holders govern Spark's parameters including collateral types, interest rates, and protocol upgrades. It was distributed via a farming program to early users.

Question 4

What is sDAI and how does it work?

Accepted Answer

sDAI (Savings DAI) is an ERC-4626 tokenized vault that earns the DAI Savings Rate. When you deposit DAI into the DSR contract through Spark, you receive sDAI which auto-compounds yield. sDAI is composable — you can use it as collateral, trade it, or bridge it cross-chain while still earning yield.

Question 5

Is Spark safe to use?

Accepted Answer

Spark inherits security from both MakerDAO's battle-tested infrastructure and Aave V3's audited codebase. It has been independently audited by ChainSecurity, ABDK, and others. However, it carries standard DeFi risks including smart contract risk, oracle risk, and liquidation risk if collateral values drop.

Question 6

What chains does Spark support?

Accepted Answer

Spark originated on Ethereum mainnet and has expanded cross-chain through its Liquidity Layer. It supports Ethereum, Base, Arbitrum, and Gnosis Chain, with the ability to mint USDS natively on supported L2s using Spark's Peg Stability Module (PSM) bridges.

Feature	Spark	Aave V3	Compound	Morpho
Built-in savings rate	6.5% (DSR)	No	No	No
Native stablecoin minting	DAI / USDS	GHO	No	No
Cross-chain liquidity	4 chains	8+ chains	5 chains	Ethereum
RWA collateral	US Treasuries	Limited	No	Via vaults
Rate model	Governance-set	Algorithmic	Algorithmic	P2P optimized
TVL	$5.2B	$12B+	$3B+	$2.1B+

Spark Protocol

Spark Ecosystem Architecture

Key Metrics

SparkLend

Savings & sDAI

Liquidity Layer

Spark vs Other Lending Protocols