MakerDAO, a number one decentralized autonomous group (DAO) on the Ethereum blockchain, introduced the launch of its Spark Protocol on Could 9. The lending platform goals to boost the liquidity and yield-bearing capabilities of its DAI stablecoin.
In a Twitter thread on Could 8, Maker outlined Spark as a lending market designed to spice up DAI’s liquidity and lending functionality and supply a yield-bearing model.
The protocol is linked to DAI’s direct deposit DAI module (D3M), offering it with a direct wholesale credit score line and enabling it to provide extra liquidity to Spark Lend mechanically.
Maker additional indicated that the rate of interest would stay regular at an preliminary annual fee of 1.11%, no matter utilization.
The Spark Protocol is linked to Maker’s peg stability module (PSM), permitting for extra liquidity attributable to immediate both-way swapping of USDC for DAI and sDAI at a 1:1 fee.
The protocol is a part of MakerDAO’s Endgame plan, which goals to make DAI a free-floating asset initially collateralized by real-world belongings (RWA).
Below this plan, DAI will stay pegged to the greenback for 3 years, and MakerDAO will accumulate as a lot ethereum (ETH) as doable to extend the ratio of decentralized collateral.
MakerDAO’s latest developments
MakerDAO’s latest selections embrace transferring 33% of its peg stability module to Coinbase’s custody and transferring an extra 500 million USDC to the change, aiming to enhance its ecosystem.
MakerDAO additionally stays dedicated to its relationship with Coinbase and the USDC stablecoin, even after regulatory turmoil.
DAI is the trade’s largest decentralized stablecoin, with a circulating provide of $4.7 billion and a market share of three.6%. Nonetheless, DAI provide has declined by 53% since its peak of virtually $10 billion in February 2022.
MakerDAO’s native token, MKR, fell 1.3% on the announcement day, buying and selling at its lowest degree for over a month. Moreover, MKR is down 89% from its Could 2021 all-time excessive of $6,292, with solely simply over 900,000 MKR in circulation.