Spark Protocol Depth Research Report: On-chain Asset Allocation Platform Incubated by MakerDAO

1. Project Overview

1. Basic Information

Spark Protocol is a decentralized finance protocol focused on stablecoin yield and liquidity. It was initiated by the MakerDAO(, now renamed the Sky) ecosystem, and developed by the Phoenix Labs team. The vision of Spark is to create a cross-chain, multi-asset scalable yield engine that intelligently deploys billions of dollars in stablecoin reserves from the Sky ecosystem into various DeFi, CeFi, and real asset opportunities, providing users with stable returns. The protocol has been deployed on multiple networks including Ethereum, Arbitrum, Base, Optimism, and Gnosis, and currently manages stablecoin liquidity at a level of billions of dollars.

2. Development History

• May 2023: The protocol launched on the Ethereum mainnet, utilizing MakerDAO's D3M module to provide a lending market for DAI.
• End of 2024: Begin strategic development of "Spark Liquidity Layer" (SLL), allocating funds to stable yield assets such as RWA.
• Q1 2025: Expansion to Layer2 networks, integration with other DeFi protocols
• June 12, 2025: TVL exceeds 8.52 billion USD
• June 17, 2025: The native token SPK is launched

3. Strategic Positioning

The Spark Protocol is positioned as the "commercial bank" of the Sky ecosystem, responsible for efficiently allocating liquidity within the Sky system to the market. The main products include:

• SparkLend: Basic Currency Market
• Spark Savings (sUSDS): Innovative savings solution
• Spark Liquidity Layer (SLL): Actively deploy idle funds into high-yield opportunities

4. Core Team

Developed by the Phoenix Labs team incubated by MakerDAO, the main members include:

• Lucas Manuel: Former CTO of Maple Finance
• Nadia: DeFi Growth Strategy Expert
• Kris Kaczor: Blockchain infrastructure expert

2. Business Model

1. Core Operating Mechanism

• Low-cost liabilities: Obtain low-cost liquidity through MakerDAO's D3M mechanism
• Innovative interest rate model: "Transparent interest rate" mechanism provides predictability
• Diversified sources of income: lending interest spread, RWA investments, cross-protocol deployments, etc.

2. Business Model Closed Loop

Forming a virtuous cycle of "low-cost liabilities → efficient asset allocation → high deposit interest rates → attracting more liquidity"

3. Ecological Construction

• USDS liquidity engine
• Sky Savings Rate ( SSR ) Implementer
• A stronghold for the multi-chain strategy
• Open integration with other DeFi protocols
• User incentives and community binding

4. SPK Token Economic Model

Total supply of 10 billion pieces, distribution as follows:

• 65% - Sky Farming: 10-year linear release
• 23% - Ecosystem Fund
• 12% - Team and Core Contributors: 4-year vesting period

3. Project Prospects

1. Industry Analysis

• The decentralized lending market is at a structural growth inflection point.
• Trends such as institutional adoption, interest rate marketization, and multi-chain liquidity demand drive growth.
• Facing challenges such as regulatory uncertainty, revenue pressure, and more.

2. Competitive Landscape

• Compared to traditional giants like Aave and Compound, the cross-chain capital allocation capability is stronger.
• Compared to new entrants like Morpho and Exactly, it has a deeper liquidity reserve.
• In the RWA track, establish advantages through the allocation of compliant national bonds.

3. Development Plan

• 2025: Cross-chain expansion and yield enhancement
• 2026: Decentralized Governance and Ecological Expansion
• 2027 and beyond: Moving towards large-scale applications in the real world

4. Conclusion

1. Core Conclusion

Spark Protocol represents the evolution of DeFi 3.0 infrastructure, achieving optimal cross-chain capital allocation through algorithm-driven methods. Its greatest advantage is the deep liquidity and RWA channels backed by the MakerDAO ecosystem.

2. Valuation and Investment Advice

• Short-term ( 0-6 months ): Neutral to cautious
• Medium to long term (1-3 years ): Actively allocate

3. Outlook

Spark Protocol has taken the lead in RWA, multi-chain liquidity management, and sustainable token economics, three major future DeFi blue-chip pillars, and its development prospects are promising.