MakerDAO contributors propose to create the first liquidity market centered around DAI, Spark Protocol

ChainCatcher message, according to a proposal posted on the Maker governance forum, MakerDAO community participants proposed the creation of a liquidity market called Spark Protocol for lending crypto assets. The proposed Spark Protocol will utilize MakerDAO's DAI stablecoin and its crypto assets to gain liquidity, and will be based on an upgraded smart contract system of the lending protocol Aave.

The first product planned for launch is Spark Lend, which will allow users to borrow DAI at a set savings rate, currently at 1%. According to the proposal, Spark Lend will support highly liquid decentralized assets as collateral, such as ETH, DAI, and wrapped derivatives of staked ETH (wstETH) and BTC (wBTC). Future features will include periodic yield products and synthetic liquid staking derivatives (LSD) EtherDAI that include Maker's own. Spark plans to launch in April, opening a DAI loan vault on Maker with a debt ceiling of $200 million.

Spark will use the Aave v3 smart contract system, and its development team, Phoenix Labs, plans to return 10% of the profits generated from the DAI market of the Spark Protocol to Aave DAO over the next two years. (source link)