Understanding Spark's TVL and Capital Allocation Strategy
Understanding Spark's TVL and Capital Allocation Strategy
🤔 TVL's Hidden Secret
Spark's Liquidity Layer (SLL) is redefining how TVL should be measured in DeFi. Unlike traditional protocols that simply lock capital, SLL actively allocates funds across multiple protocols and chains.
Key points:
- Currently allocating $2.38B in assets onchain
- Holds ~40% market share as an Onchain Capital Allocator
- Operates across Arbitrum, Base, and Ethereum
The traditional TVL metric appears split because SLL deploys capital externally. When enabling 'Double Counting', the full picture emerges, showing LP tokens and vault positions across the ecosystem.
This approach maximizes capital efficiency by:
- Ensuring deeper liquidity
- Generating competitive yields
- Reducing idle capital
The Spark TVL needs a closer look. Spark is growing, with an expanding supply and multiple new capital integrations between TradFi, CeFi, and Defi. But what about the Spark Liquidity Layer's TVL? Let's have a look 👇
Spark is now the largest Onchain Capital Allocator in the world. Spark is currently allocating $2.38 billion in assets onchain, making it the leader in this newly defined category with ~40% market share contribution. See it for yourself 👇 defillama.com/protocols/Onch…
Moving capital for deeper liquidity & better DeFi Spark is the Onchain Capital Allocator that programmatically deploys $2.3B+ in liquidity across DeFi for maximum capital efficiency and less liquidity fragmentation. Upgrading your borrowing & lending experience. Here’s how ⤵️
Spark is now listed as an Onchain Capital Allocator on @DefiLlama! But that's not even the best part. Spark has defined this new category - Onchain Capital Allocator for DeFi. Check it out 👇 defillama.com/protocols/onch…
Now tracking @sparkdotfi Liquidity Layer on @ethereum , @arbitrum & @base The Spark Liquidity Layer (SLL) automates liquidity provision of USDS, sUSDS, and USDC directly from Sky across various blockchain networks and DeFi protocols
In DeFi, liquidity isn’t enough. That’s why Spark doesn’t just provide liquidity, but also orchestrates it as the onchain capital allocator of DeFi. Spark allocates capital where it's needed most to ensure competitive yields and higher capital efficiency for all. Dive in 👇
A bank wouldn't tell you this, so Spark will. Banks optimize for profits, Spark optimizes for more competitive yields on your Savings. Allocating your saved capital across DeFi to get you higher capital efficiency and better APYs. Here's what it means 👇
🤝 Spark Joins Ethereum Protocol Advocacy Alliance
**Spark has joined the Ethereum Protocol Advocacy Alliance (EPAA)** as a founding member, alongside other major protocols like Lido. The EPAA aims to: - Bring the **builder perspective** to crypto policymaking - Counter the outsized influence of centralized actors in regulation - Provide a unified voice for decentralized protocols This alliance represents a significant step toward ensuring that **actual protocol builders** have input in shaping the regulatory landscape that affects the entire Ethereum ecosystem. The move signals growing coordination among DeFi protocols to engage proactively with policymakers rather than react to regulations after they're written.
Spark Hits Multiple All-Time Highs in October
**Spark achieved several all-time highs** during October while delivering important platform updates. The DAI-focused lending protocol continues its upward trajectory with significant milestones reached throughout the month. - Multiple ATH records broken - Key platform updates delivered - Strong momentum maintained Spark operates as a **DAI-centric money market protocol** that integrates liquidity from Maker with leading DeFi protocols. The October performance highlights Spark's growing adoption within the DAI ecosystem.
🗳️ Spark Governance Polls Open
**New governance polls are now live** for Spark Protocol community members. **Key Details:** - Voting closes on November 6th, 2025 - SPK and stSPK token holders can participate - Multiple proposals available for voting **How to Participate:** - Cast your vote directly on active proposals - Delegate your voting power if preferred - Access all open polls through the governance portal [Vote on Open Polls](https://snapshot.box/#/s:sparkfi.eth/proposals) [Learn About Voting Process](https://docs.spark.fi/governance/) **Take action:** Review the proposals and make your voice heard in Spark's decentralized governance.
Spark Savings Exits Soft Launch with 5x Higher Deposit Caps
**Spark Savings has officially ended its soft launch period** and significantly increased deposit limits across all supported assets. **New deposit caps:** - USDT: 250M (up from previous limits) - USDC: 250M (up from $50M) - ETH: 50K ETH (up from 10K ETH) The platform offers **institutional-grade, non-custodial access** to real-time compounding growth. Users can deposit stablecoins or ETH and withdraw anytime in the same asset with **no fees or slippage**. This expansion comes after Spark Savings V2 reached over $120M in total deposits on its launch day, with the previous $50M USDC cap being reached in just three days. The service provides conservative yield generation primarily from lending against BTC, ETH, and LSTs/LRTs, while minimizing exposure to riskier assets like perpetual futures.
Last Call for Pendle Points Season 1
Final week to participate in Pendle Points Season 1, ending August 12, 2025. - Earn points by simply holding YT/PT-USDS positions on Pendle - No additional steps required - Access through [Spark.fi](https://app.spark.fi/points) or [Pendle Finance](https://app.pendle.finance/trade/pools/0xdace1121e10500e9e29d071f01593fd76b000f08) *Note: This crypto-asset marketing communication has not been reviewed by EU authorities. For official documentation, visit [spark.fi/mica](http://spark.fi/mica)*