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TVL $773MAPY 1.62%low riskUpdated Feb 1, 2025

Spark WETH

Supply WETH to Spark Protocol on Ethereum. Spark is the lending arm of Sky (formerly MakerDAO) ecosystem.

ProtocolSpark
Networkethereum
SymbolSPWETH
CategoryMoney Markets
Underlying Assets
WETHETH
Contract Address0x59cd1c87501baa753d0b5b5ab5d8416a45cd71db

What is Spark WETH?

Spark WETH is a lending market on Spark Protocol, the DeFi lending platform within the Sky ecosystem (formerly MakerDAO). Spark enables users to supply WETH and earn yield from borrowers while integrating with Sky's stablecoin infrastructure.

How Spark Protocol Works

Spark Protocol operates as an Aave V3 fork customized for the Sky ecosystem:

  1. Deposit WETH into Spark's lending pool
  2. Receive spWETH tokens representing your deposit
  3. Earn interest from borrowers
  4. Withdraw WETH plus accrued yield anytime
Sky Ecosystem Integration: Spark is designed to support USDS (Sky's stablecoin, successor to DAI) and integrates with Sky's Savings Rate and other ecosystem products.

What Assets Are Involved

Supply Asset: WETH (Wrapped Ether) Receipt Token: spWETH - Spark deposit token

WETH borrowing on Spark is used for:

  • Leveraging ETH positions against stablecoin collateral
  • Accessing liquidity within the Sky ecosystem
  • Recursive strategies with liquid staking tokens

Sky (MakerDAO) Ecosystem

Spark is part of the broader Sky ecosystem:

  • USDS: The new stablecoin replacing DAI
  • SKY: Governance token (replaced MKR)
  • Sky Savings Rate: Yield on USDS holdings
  • SparkLend: The lending protocol

The ecosystem completed its rebrand from MakerDAO to Sky in 2024-2025.

Risk Disclosures

Smart Contract Risk: Spark is an Aave V3 fork with custom modifications. While Aave code is battle-tested, Spark-specific changes introduce additional risk surface. Protocol Governance Risk: Sky DAO controls Spark parameters. Governance decisions could affect rates and risk parameters. Ecosystem Risk: Deep integration with Sky means Spark's health is tied to the broader ecosystem's stability. Oracle Risk: Accurate price feeds are critical for liquidation mechanics. Utilization Risk: High utilization could temporarily prevent withdrawals. Transition Risk: The MakerDAO to Sky transition introduced new tokens and mechanisms that are still maturing.

Related Money Markets

Aave Ethereum WETH1.25% APYAave Ethereum USDT2.45% APYAave Ethereum wstETH0.01% APYAave Ethereum USDC3.47% APYAave Ethereum WBTC0.01% APY
Disclaimer: APY and TVL figures are based on on-chain data and may fluctuate. Past performance does not guarantee future results. DeFi investments carry smart contract, market, and liquidity risks. This content is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing.

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