- The main leveraged asset here will be the DAI
- And the interest rate is chosen by vote
- The platform goes live today
MakerDAO introduced a DeFi-like credit platform called Spark. It is based on the Aave V3 protocol, and promises unique credit solutions for DAI stabelcoin.
Unlike the basic MakerDAO engine, which allows you to generate new DAI as secured debt, Spark will offer to borrow DAI using assets such as ether (ETH), zapped ether (stETH) and DAI themselves.
The first version of Spark protocol is called Spark Lend. It is a lending market focused on collateral and lending to crypto-assets with a focus on DAI.
The platform is available to all DeFi users as of today. An interesting feature of Spark is the non-standard interest rate model.
Interest on loans is set by board members through online voting, rather than fluctuating based on supply and demand as with Aave or other lending protocols.
Borrowers can initially borrow DAI loans at an annual rate of 1.11% through Spark.
Spark is also integrated with the MakerDAO Peg Stability module, which provides instant DAI to USDC conversion at a 1-to-1 rate..
The development of Spark was led by Phoenix Labs, working with MakerDAO. Remind that Aave approved the integration of V3 with zkSync Era.