# Spark (SparkLend and Liquidity Layer) by Sky (formerly MakerDAO)

Canonical page: https://technooptimist.io/crypto/spark
Frontier: [Crypto](https://technooptimist.io/crypto.md) · Field: Lending & yield · Company: [Sky (formerly MakerDAO)](https://technooptimist.io/companies/sky.md)
Stage: Scaling (5 of 5: Research → Proto → Pilot → Deploy → Scaling)
Updated: last update 2026-07-01, facts checked 2026-10-11
Goal: Put the billions in Sky's stablecoin reserves to work at market rates, routing them to whichever lending venue or institution pays most, so dollar savers on-chain earn real interest with tight risk controls.
Status: Q2 2026: SparkLend deposits $5.03B, 10.4% of loans across major lenders, profitable at ~$3.3M.
Next milestone: Robinhood Earn (USDG) integration

## Milestones

| Status | Milestone | Date | Slip |
| --- | --- | --- | --- |
| Done | SparkLend opens (fork of Aave v3, DAI-focused) | 9 May 2023 |   |
| Done | Anchorage loans against BTC kept in custody | 15 Jan 2026 |   |
| Done | Spark Prime margin lending with Edge Capital, M1, Hardcore Labs | 11 Feb 2026 |   |
| Done | Over $1B moves in after an outside bridge exploit | Apr 2026 |   |
| Done | ~$150M moved into Uniswap v4 stablecoin pools | 25 Jun 2026 |   |
| Planned | Robinhood Earn (USDG) integration |   |   |

## Most important updates

- **Q3 2026**: Spark doubles its share of DeFi lending to 10.4% in Q2 2026 while staying profitable. A Blockworks Advisory report commissioned by the Spark Foundation shows Spark's share of loans across the major lending venues rising from 4.3% to 10.4% while the combined loan book shrank about 30%. ([our story](https://technooptimist.io/stories/spark-doubles-its-share-of-defi-lending-to-10-4-in-q2-2026-while-32d93b1d.md) · [original source](https://blockworks.com/api/investor-report/spark-token-holder-report-q2-2026/pdf))
- **15 Jan 2026**: Anchorage and Spark let institutions borrow on-chain against BTC that stays in Anchorage custody. Institutions can borrow stablecoins from Spark while their bitcoin stays at Anchorage Digital Bank. ([our story](https://technooptimist.io/stories/anchorage-and-spark-let-institutions-borrow-on-chain-against-btc-that-7ad0376c.md) · [original source](https://www.theblock.co/post/385652/anchorage-unlocks-onchain-lending-using-off-chain-collateral-via-spark))
- **8 May 2023**: MakerDAO launches Spark, a DAI lending market forked from Aave v3. MakerDAO opened SparkLend to all users from May 9, 2023. ([our story](https://technooptimist.io/stories/makerdao-launches-spark-a-dai-lending-market-forked-from-aave-v3-73966380.md) · [original source](https://www.theblock.co/post/229805/makerdao-boosts-dai-lending-capabilities-via-spark-protocol-roll-out))

## Current obstacles

- **Thin interest margins**: Net interest from the Liquidity Layer fell 59% in Q2 2026; distribution fees paid by partners now make up about three quarters of net revenue.
- **Weak borrowing demand**: Loans across the big lending venues shrank about 30% in Q2 2026, so growth means taking share from Aave and Morpho.
- **Off-chain counterparties**: Institutional channels (Anchorage, Arkis, Maple) pay the best rates but add legal and credit risk that code alone cannot enforce.

## Physics limits

- **Yield is the price of risk**: Rates above government bills exist only because lenders accept the chance of loss; routing capital cleverly cannot remove that trade-off.
- **Collateral can fall faster than it sells**: In a crash, collateral prices can gap down before liquidators act, so even overcollateralised loans can lose money.
- **Oracles are the weak point**: A lending market only knows prices that oracles report; a manipulated or broken feed can trigger wrong liquidations or bad loans.

## How it works

### Source: Borrow stablecoins from Sky

Spark draws USDS from Sky's reserves (~$2.1B at end Q2 2026) and raises more from its own savings vaults in USDC, USDT, PYUSD and ETH.

### Allocate: Send money where demand is

The Liquidity Layer moves funds between SparkLend, institutional desks, PayPal's PYUSD and trading pools, following the best rate within set limits.

### Lend: Overcollateralised loans

On SparkLend, borrowers lock crypto worth more than the loan; via Anchorage, institutions borrow against BTC that never leaves custody.

### Protect: Rate limits and a kill switch

Caps on how fast funds can move, plus an oracle kill switch, let Spark ride out an April 2026 exploit elsewhere in DeFi without losses.

## Spec sheet

| Spec | Spark (SparkLend and Liquidity Layer) | Provenance |
| --- | --- | --- |
| SparkLend deposits (Q2 2026) | $5.03B | reported |
| Share of loans, major lenders (Q2 2026) | 10.4% | reported |
| Liquidity Layer avg. allocation (Q2) | ~$4.2B | reported |
| Savings deposits (end Q2 2026) | ~$3.62B | reported |
| Revenue net of funding (Q2 2026) | $6.57M | reported |
| Net income (Q2 2026) | ~$3.3M | reported |
| First Anchorage loans | $150M USDC vs $222M BTC | reported |

Provenance: reported = stated by the company; estimated = our estimate; sample = a sample figure.

## About Sky (formerly MakerDAO)

Sky is a decentralized protocol issuing USDS and DAI stablecoins. MakerDAO rebranded to Sky in August 2024, launching USDS as an upgraded token with a savings rate. Combined USDS and DAI supply totals $10.13 billion as of October 2026, making Sky the third-largest stablecoin issuer.

- DAI pioneered vault-backed stablecoins in 2017. Sky rebranded from MakerDAO in 2024.
- USDS is convertible 1:1 with DAI and earns approximately 3.6% APY via sUSDS staking as of October 2026.
- Combined USDS/DAI supply: $10.13B as of October 2026. Third-largest stablecoin after Tether and Circle.

- Founded: 2015
- Headquarters: KY
- Status: public
- Raised: $1
- Last round: Token sale $1, 2017
- Website: https://sky.money
- People: Rune Christensen (Co-founder)
- Partners, customers, investors: Aave (partner); Curve Finance (partner); Binance (partner); Coinbase (partner)

Company page: https://technooptimist.io/companies/sky.md

## Related programs

More from Sky (formerly MakerDAO):

- [USDS](https://technooptimist.io/crypto/usds.md) (Scaling)
- [DAI](https://technooptimist.io/crypto/dai.md) (Deploy)

Everything in Crypto: https://technooptimist.io/crypto.md

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