What is Spark Protocol?
Spark Protocol is the lending and DeFi frontend affiliated with MakerDAO, serving as the primary interface for accessing DAI, the DAI Savings Rate (DSR), and borrowing against various collateral types. Originally an Aave fork, Spark has evolved into MakerDAO's preferred lending layer, offering competitive rates and deep integration with the Maker ecosystem.
Through Spark, users can deposit DAI into the DSR (earning 5-8% APY), borrow DAI against ETH and LSTs, or use SparkLend for traditional money market operations.
Key Metrics
| Metric | Value |
|---|---|
| . . . . | . . . - |
| Total Value Locked | $2B+ |
| Chain | Ethereum |
| DSR Rate | 5-8% (variable) |
| Collateral Types | ETH, wstETH, rETH, sDAI |
| Integration | MakerDAO native |
How Spark Works
DSR Access: Deposit DAI to earn the DAI Savings Rate, funded by Maker protocol revenue. SparkLend: Borrow DAI against crypto collateral with competitive rates and high LTV ratios for LSTs. sDAI: Wrapped savings DAI that auto-compounds DSR rewards.Yield Opportunities
1. DAI Savings Rate (5-8% APY)
- Deposit DAI directly
- Earn protocol revenue share
- No lock-up period
- Receive sDAI for DeFi composability
2. SparkLend Lending (2-6% APY)
- Supply ETH, wstETH, or other assets
- Earn variable interest
- borrow against deposits
3. Leveraged Strategies
- Borrow DAI against LSTs
- Deploy borrowed DAI elsewhere
- Self-repaying loan potential
Track Spark opportunities with Fensory.
Risk Considerations
- MakerDAO Dependency: Rates set by Maker governance
- Smart Contract Risk: Additional protocol layer
- Liquidation Risk: Collateralized positions can be liquidated
- DSR Variability: Rate changes with protocol economics
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Interested in DAI yields? Fensory tracks Spark and MakerDAO opportunities.[Get Started with Fensory →](https://www.fensory.com)