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 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.
Spark Reports $53M Q3 Revenue with $12.1M Net Profit
**Spark Protocol released its Q3 2024 financial results**, showing strong performance across multiple revenue streams. **Key Financial Metrics:** - Gross revenue: $53.01M - Gross profit: $19.2M - Net profit: $12.12M **Revenue Sources:** - **Spark Liquidity Layer (SLL)**: Earns spread between investment yields and capital costs - **SparkLend**: Collects reserve factors on borrower interest - **Market Curation**: Performance fees from Morpho vaults - **USDS Distribution**: 0.6% accessibility reward from Sky - **Treasury Management**: Yield from Sky's savings rate The protocol currently generates $379.7M in annualized revenue for Sky ecosystem. Spark's Liquidity Layer provides infrastructure supporting deployments across Aave, Morpho, Ethena, and Pendle on Ethereum. [Read the full financial report](https://mirror.xyz/0x52A8305f29f85bEc5fa6eE78B87Ddd2218d8E12E/R7hSngPkZoULGaiPFliXzIEb0sRiDwX4yVpMKXu_6JM)
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)*
Spark Protocol Announces Multiple DeFi Earning Opportunities
Spark Protocol introduces three ways to earn yields in 2025: - **SPK Farm**: Users can supply USDS to earn SPK token rewards - **SPK Staking**: Participants stake SPK tokens to earn points and future protocol rewards - **Pendle Campaign**: Holders of PT/YT-USDS earn Spark Points (campaign ends August 12) All features are accessible through [Spark's app interface](http://app.spark.fi). For detailed information and documentation, visit [Spark's MICA page](http://spark.fi/mica). *Note: This offering has not been reviewed by EU regulatory authorities.*
Spark Positions Itself as Alternative to Traditional Banking
Traditional banking systems continue to face criticism for: - Requiring permissions for personal fund access - Lacking default transparency - Operating with user value extraction models Spark emerges as a decentralized alternative, aiming to address these limitations in traditional banking infrastructure. The protocol integrates with the DAI ecosystem to provide permissionless financial services. *Key Differentiators*: - Direct user control over funds - Default transparency - User-centric value model - Decentralized architecture