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- 1 Spark Protocol is striking up against its DAI debt limit after raising the ceiling from $20 Million to $200 Million.
- 2 Spark Protocol offers a new and innovative way to lend and borrow DAI within DeFi, offering attractive borrowing rates and passive income.
Spark Protocol, is a lending protocol designed by MakerDAO to offer DeFi loans by obtaining liquidity straight from the Maker. The platform was launched by MakerDAO on 9 May 2023, to offer more innovative and efficient services related to lending and borrowing. The platform recently emerged in the headlines and stirred the crypto landscape.
Why has the Spark Protocol Boomed?
Within two weeks after raising the ceiling from $20 Million to $200 Million, Spark Protocol skyrocketed against its DAI debt limit. Surprisingly, all these happened in only eight days of time as users borrowed around $180 Million DAI in this time period.
According to Blockanalitica, the pool utilization at present is approximately 99% and ready to stir the crypto landscape in the upcoming days. Spark Protocol is a lending platform that accepts collateral in the form of Dai Ether (ETH) and staked Ether and is expected to become a SubDAO soon. Also, the platform is one of the most significant innovations of MakerDAO for the long term and is predicted to rule the crypto landscape. The platform is emerging as a major competitor to decentralized stablecoins and is intended to safeguard DAI’s market share from DeFi-native stable tokens issued by Aave and Curve.
In addition, the boom of activities over the Spark simply enhanced the DAI Saving Rate (DSR) of Maker DAO. Also, the DSR can be accessible to Spark users from 3.3% to 8% to support the adaptation of DAI and Spark. However, the enhancement in DSR yields will decline the usage of the same.
The success and growth of Spark Protocol can be measured by its Total Value Locked (TVL) standing. Based on the report of Dune Analytics, Within six days of time, the TVL of Spark Protocol boomed by 674% reaching from $58 Million to $449 Million. In addition, DSR’s TVL also boomed up to 300%, standing at $1.39 Billion.
The high liquidity cryptocurrency lending environment and the easy way to lend and borrow digital assets are one of the main reasons behind the platform boom. In simple terms, Spark made it easy for users to access digital assets in a flexible manner.
The Current State of DAI
Focusing on the current value and state of DAI, a stablecoin whose development and issuance are done by MakerDAO. DAI price today is around $0.9993 with a market cap of $5.3 Billion. The total volume of the coin within the past 24 hours is around $114 Million. DAI is available at the current rate on different cryptocurrency exchanges including Bybit, DigiFinex, OKX, LBank, and Bitrue.
Conclusion
The recently launched lending platform of MakerDAO, Spark Protocol, boomed in the crypto landscape recently. Within two weeks, the lending and borrowing platform skyrocketed against its DAI debt limit just after raising the ceiling from $20 Million to $200 Million. Spark Protocol made it easy and flexible for users to lend and borrow coins. Also, the platform is intended to safeguard DAI’s market share from DeFi-native stable tokens issued by Aave and Curve.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
