SparkLend

Spark has published its monthly update covering January 2026 activities. The announcement highlights new partnerships formed during the month and key product updates delivered to the platform. **Key Points:** - New partnership agreements established in January - Multiple product updates and improvements shipped - Continued focus on DAI ecosystem development Spark operates as a DAI-focused money market protocol within the MakerDAO ecosystem, providing liquidity solutions and DeFi protocol integrations through SparkLend. The update follows a similar pattern to previous monthly recaps, with December's report also featuring partnership announcements and platform developments.

SparkLend has officially deprecated its Gnosis market, freezing all new deposits and borrows across the chain. **Key Changes:** - All reserves frozen across WXDAI, sDAI, WETH, wstETH, EURe, USDT, USDC.e, GNO, and USDC - Reserve factor increased to 50% for all assets - Existing positions remain unaffected and accessible **Rationale:** The decision stems from low market usage and limited reserve revenue, prompting a strategic reduction in risk exposure. SparkLend remains open to future collaboration with Gnosis Chain when market conditions improve.

**sUSDS has emerged as the fastest growing asset** within Spark Savings, driving significant growth across the platform. **Key Metrics:** - Total Value Locked (TVL) has **surpassed $4.1 billion** - Platform is hitting **new all-time highs daily** - Represents massive growth from previous milestones **Recent Growth Context:** - Savings V2 TVL previously reached $300M in November - Caps were raised to accommodate demand: USDT 500M, USDC 500M, ETH 100K - Spark now leads across all chains with +$3B in TVL **Platform Features:** - Institutional-grade, non-custodial access - Real-time compounding growth - No platform fees or slippage - Deposit stablecoins or ETH, withdraw anytime in same asset The rapid adoption of sUSDS demonstrates growing institutional and retail demand for yield-generating stablecoin products in the DeFi space.

**Spark achieved multiple all-time highs** during November while delivering significant platform updates. The DAI-centric money market protocol continues its growth trajectory, building on previous monthly successes. Key developments included: - Multiple ATH milestones reached - Important platform updates delivered - Continued integration with top DeFi protocols Spark combines **premium liquidity from Maker** with vertical integration across leading DeFi platforms, strengthening the DAI ecosystem.

**Spark Season 2 ending soon** - only two weeks remaining to accumulate points. Current stats: - **425+ billion points** distributed - **15,764 active wallets** participating This is your **final opportunity** to stack points before Season 2 concludes. [Start earning points now](https://app.spark.fi/points)

The onchain capital allocator market has experienced explosive growth, expanding from $111M to **$10B in total value locked (TVL)** over the past 18 months. **Spark leads the market** across all chains with over $3B in TVL, demonstrating what institutional-grade DeFi protocols can achieve. This represents a **90x growth** in the overall market, highlighting the increasing adoption of onchain capital allocation solutions by institutional and retail users alike. The rapid expansion showcases the maturation of DeFi infrastructure and growing confidence in onchain financial products.

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 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.*

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

Spark Protocol has revealed its comprehensive infrastructure for yield generation and management. The system integrates: - Multiple stablecoins (USDS, sUSDS, sDAI, USDC) - SkyLink and CCTP bridge technologies - Active Liquidity Management (ALM) system The Sky Savings Rate (SSR) serves as the primary yield source for USDS, funded by: - Crypto-collateralized loan fees - Spark Liquidity Layer revenues - U.S. Treasury bill investments With projected annual revenue of $400M (Spark contributing $130M), the protocol aims to deliver sustainable yields through governance-controlled rates. This structure maintains stable borrowing rates across connected protocols. [Learn more about Spark's yield generation](https://messari.io/report/understanding-spark-a-comprehensive-overview)