Spark Protocol, the DAI-centric decentralized finance (DeFi) lending platform, has announced that the total circulation of Savings DAI (sDAI) has surpassed 1 billion. Governed by SparkDAO - the first functional SubDAO in the MakerDAO ecosystem - Spark Protocol enables users to deposit their DAI stablecoins through the DAI Savings Rate (DSR) to convert them to sDAI and earn interest while maintaining liquidity.
With development led by a series of contributors, including Phoenix Labs, Spark Protocol allows users to lend, borrow, trade and earn from Maker’s DAI stablecoin and other assets including ETH, stETH, rETH and sDAI.
Sam MacPherson, CEO of Phoenix Labs, said: "In spite of challenging market conditions, Maker and Spark have experienced impressive growth and garnered significant interest from the DeFi community. This reflects the strong trust in DAI, especially following the reactivation of the DSR, which has played a pivotal role in the resurgence of both sDAI and DAI supply. The additional 200 million DAI injection from the Maker Protocol allows Spark to use this capital to stay at the forefront of DeFi lending."
Spark Protocol is governed by SparkDAO, the first functioning SubDAO formed as part of MakerDAO’s Endgame Era - a new multi-year phase within its ongoing development. As a SubDAO, SparkDAO has a specialized area of expertise and is empowered to implement ideas and make decisions independently. This approach enables the Spark community to focus on delivering cutting-edge DeFi lending facilities while helping MakerDAO as a whole move forward in a decentralized way.
“Spark’s growth highlights what is possible when a project has the freedom to move and innovate quickly while being built on the rock solid foundation of proven governance processes and tools only MakerDAO can provide,” said Rune Christensen, co-founder of MakerDAO. “Spark is a tangible example of how SubDAOs will play an essential role in the future growth of DeFi, unlocking efficiency, building resilience, and driving participation within the ecosystem while abstracting away the complexity that has traditionally bogged down DAOs.”
