A new DeFi multi-project integration between MakerDAO, the longest-running DeFi lending protocol and creator of DAI, Spark, a DeFi infrastructure built by MakerDAO, Morpho, a decentralized lending platform, and Ethena, a synthetic dollar protocol on Ethereum, was launched today. Spark will now launch new DAI markets with Ethena's sUSDe and USDe, on Morpho's lending protocol, Morpho Blue. In addition, a DAI vault has been built on top of Metamorpho, a protocol for creating lending vaults on Morpho Blue, to allocate DAI liquidity from MakerDAO to these markets.
As DeFi lending rebounds closer to the levels last seen at its peak in 2022, scalable frameworks are required to meet current and future demand. This integration marks a pivotal moment for DeFi, demonstrating collaborative efforts to create a more secure, efficient, and scalable financial system.
Key to enabling this collaboration is the MakerDAO Endgame Plan - a fundamental transformation of the DAO to improve growth, resilience, and accessibility - which accelerates this year. As a newly formed SubDAO within the Maker ecosystem, Spark benefits from unparalleled liquidity provided by Maker. Maker will facilitate a direct link between DAI liquidity to Spark's new DAI Metamorpho vault, ensuring an efficient flow worth hundreds of millions of DAI into sUSDe/DAI and USDe/DAI markets. The DAI markets created on Morpho Blue will enable users to obtain advantageous DAI borrowing rates at a considerably larger scale. Meanwhile, Ethena provides a synthetic dollar to power this integration with no ties to traditional banking infrastructure. This integration further enables DeFi users to partake in a new paradigm of DeFi interest rates.
Sam MacPherson, CEO and Co-founder at Phoenix Labs, the R&D company contributing to Spark, said, “This strategic collaboration unlocks novel and innovative opportunities for the entire DeFi lending ecosystem that will be looked back upon as a truly significant moment. MakerDAO’s groundbreaking SubDAO dynamic has enabled this development as well as the overall rapid growth of Spark. It is a testament to the efficiency of DeFi when a new product launches with a killer value proposition and succeeds in the manner which Spark has done.”
Paul Frambot, CEO and Co-founder at Morpho Labs, said “It’s exciting to see Morpho’s trustless and efficient infrastructure approach to lending being embraced by DeFi’s largest and fastest-growing protocols. By building on top of Morpho Blue's infrastructure, Spark will open a wider variety of use cases for DAI while preserving optimal security for Maker’s ecosystem. Users will be able to borrow DAI with a much broader diversity of collateral, greatly expanding the scope of lending and borrowing opportunities for users.”
Guy Young, Founder and CEO at Ethena Labs, said, “Ethena is excited to help provide a new base asset upon which other DeFi applications can build upon and innovate. This integration is the perfect example of the power of composability within DeFi, and brings us one step closer to realizing our vision of providing a crypto-native internet bond to DeFi.”
