MakerDAO, a decentralized autonomous organization operating on the Ethereum blockchain and issuing the DAI stablecoin, has announced who has released Spark Protocol, a loan solution for DAI users.
Announcing the Spark Protocol launch âš¡ï¸
Starting May 9, 2023, Spark Protocol will be available to all DeFi users.
An end-user, DAI-centered DeFi product deployed on Ethereum with supply and borrow features for ETH, stETH, DAI, and sDAI. pic.twitter.com/oLa8oeBmL1
—Maker (@MakerDAO) May 8, 2023
According to the Twitter announcement, the first version of the Spark Protocol will act as a “lending marketplace,” providing users with bidding and lending features for cryptocurrencies such as Ether (ETH), staked Ether (stETH), DAI (DAI), and staked. ICD (sIDA). The platform is specifically designed for DAI and aims to provide users with access to competitive interest rates.
Spark Protocol is also linked to Maker’s D3M (Direct Deposit Dai Module), a system that enables interaction between the Maker ecosystem and third-party lending groups. The link between Spark Protocol and Maker’s D3M is intended to allow users to borrow DAI at more competitive rates, with an initial annual rate of just 1.11%.
Regarding the connection between the Spark Protocol and Maker’s D3M, the announcement noted: “This direct wholesale DAI credit facility automatically injects and balances fresh DAI liquidity into Spark Lend and allows its users to access the best rates in the market.”
Ultimately, the Spark Protocol lending solution promises to enhance MakerDAO’s DAI lending capabilities, increase liquidity, offer users better rates, offer a performing version of DAI, and provide more liquidity options.
MakerDAO recently proposed a new “constitution” designed to establish and formalize its governance processes, as well as to protect against possible threats from malicious actors who may try to take over the protocol.
To ensure the security and stability of Maker and protect user funds from potential failure or loss due to human and institutional decisions, MakerDAO’s new constitution uses “alignment engineering” to solidify the fundamental commitments of the Maker community.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.