Spark

Inside Spark’s loss absorption & risk frameworks. Spark’s security architecture is designed around: • bounded capital movement • explicit loss absorption layers • coordinated liquidity management • multi-layered oracle systems • constrained automation under governance-defined limits This deep dive breaks down how Spark structures risk, liquidity, and loss absorption across Spark Savings, SparkLend, and the Spark Liquidity Layer before losses propagate toward user deposits. Including: • updated loss absorption waterfall • Prime Agent risk capital • Genesis Capital Backstop • oracle and killswitch architecture • programmatic liquidity coordination • constrained allocation design under stress Security by design. Resilience by architecture. See what sits between losses and user deposits: @spark-11/spark-security-framework" target="_blank" rel="nofollow noopener">paragraph.com/@spark-11/spar…

@gregfeibus @MidasRWA Welcome Greg ⚡️

After 2+ years at @MidasRWA, I’ve decided to join thr Sky Frontier Foundation as the Global Head of Capital Markets. I'm genuinely grateful to have been part of the Midas journey from the early, early days, helping build the platform from the ground up, scaling to $2B + in asset issuance, and closing a $50m Series A. On May 18th, I joined @RuneKek at the SFF. The @SkyEcosystem sits at the intersection of tokenization, traditional capital markets, and onchain finance, three worlds that are now undeniably colliding. My focus will be leveraging Sky's growing balance sheet to deepen capital flows, by leveraging the most established institutions and capital channels to bring traditional finance meaningfully into the Sky Ecosystem. Sky has been executing quietly and consistently for years with ~$11B in combined stablecoin supply, $15B in TVL, ~$450M in annualized revenue, and a $2.5B mandate to deploy into real-world assets across credit, AI infrastructure, energy, and housing. Currently, USDS is the 3rd largest stablecoin while sUSDS is the world’s largest yield generating stablecoin. It’s clear that in a period of broader DeFi dislocation, Sky became the flight-to-safety. This is the product of a decade of rigorous risk management and protocol discipline tracing back to the earliest days of MakerDAO. Capital markets run on trust. Sky has been building it longer than any protocol in DeFi by optimizing for one thing: capital preservation above all else. Sky is well positioned to build on that trust by expanding participation from traditional institutions across an increasingly mature ecosystem. I look forward to contributing to that effort!

How SparkLend handles oracle disruption. Pricing uses multiple independent oracle providers with aggregation, fallback logic, and automated safeguards designed to reduce reliance on any single price source. Additional protection layers can restrict new borrowing when severe deviations are detected. Read the full security framework here: @spark-11/spark-security-framework" target="_blank" rel="nofollow noopener">paragraph.com/@spark-11/spar…

Nearly $2B of wstETH has been supplied into SparkLend. Current positioning: • ~$1.95B wstETH supplied • $761M WETH borrowed • WETH borrow rate: 1.85% • 72.1% WETH utilization Much of this activity follows a recursive ETH carry structure: Deposit wstETH → borrow WETH → swap into wstETH → redeposit. What stands out isn’t the existence of looping. It’s the market structure supporting it: • WETH borrow rates remain below broader market levels • the market remains below the high-utilization rate escalation zone • SparkLend’s ETH e-mode is designed around correlated ETH staking collateral The result is a more efficient environment for scaled ETH-denominated credit positioning. app.spark.fi/sparklend

@SkyEcosystem Security First. Always. 🙌🏻

Security incidents across DeFi are a recurring reminder of what is at stake for users, for protocols, and for the future of onchain finance. The infrastructural approach powering Sky Protocol has operated for over a decade without a core smart contract exploit or the loss of any users' funds. Sky Protocol has survived through multiple market cycles and the collapse of various assets and protocols within the DeFi industry. This is attributed to Sky Protocol's commitment to rigorous risk management across smart contracts, legal frameworks, and capital management. As exploits occur across the industry, Sky Protocol uses these moments to learn and strengthen its systems, maintaining the security and stability that users depend on. Sky Protocol has continuously evolved its collateral architecture, from single-collateral DAI to multi-collateral DAI to a diversified set of onchain and real-world assets backing both DAI and USDS, driven by a governance commitment to building a more resilient and robust system over time. This track record, along with the diversified collateral architecture backing Sky Protocol's stablecoins, is why sUSDS has become the world's largest yield-generating stablecoin and USDS the third-largest stablecoin globally. We empathize deeply with everyone affected. And we believe the path to institutional DeFi runs through this commitment: document every failure mode in advance, design for the worst case, and never treat capital protection as a second priority. The standard never lowers. The work continues. Onwards.

@stable_summit ⚡️

Tokenized securities create demand for stablecoin cash legs. How settlement finalizes, how netting opinions, UCC treatment and custody interoperability get resolved, and where tokenized deposits and money market funds compete or complement across capital markets workflows are questions the industry hasn't closed. This panel takes them on. On stage: Jasmine Jia, Fidelity Digital Asset Management Simon Miall, @SuperstateInc @MonetSupply, @sparkdotfi Moderator: @jensenhaji, @ChronicleLabs June 4, New York· stablesummit.xyz

Spark & BitGlobal AMA | wBTC Lending in DeFi x.com/i/broadcasts/1…

Reminder: Happening in 2 hours.

@JackMandin @JupiterExchange 📈

Big month for SparkLend and Jupiter Lend, deposits and loans both up >70% MoM

Read the case study below from the @CredoraNetwork team. The industry demands transparency, and Spark and its core collaborators are leading the way. Read more here.👇

@WrappedBTC It's undeniable that demand is growing faster every day!

WBTC on SparkLend is scaling fast. April 1: 362.09 WBTC supplied May 18: 2,541.13 WBTC supplied Demand grew so quickly that @sparkdotfi governance approved a 10x increase in the WBTC supply cap.

Join Sam @hexonaut and Nadia Song (the team from @WrappedBTC) this Wednesday for a live AMA on wBTC collateral & SparkLend. Learn how idle wrapped Bitcoin becomes productive on-chain and what that means for DeFi borrowing. Don't miss it. 🎙️

Saying ‘No’ is one of the most underrated superpowers in the world of De-Fi. @hexonaut, Founder of @phoenixlabsdev and the engineer behind Spark Protocol, manages billions in stablecoin yield by saying no to almost every new asset that comes along. Why does his discipline beat the degen playbook? New un# episode out now. Link in comments👇

Over 2,748 wBTC supplied as collateral on SparkLend since its March launch. What stands out is the pace. That supply moved in within three days, as borrowers refinanced existing BTC backed positions into SparkLend. The number reflects what the market was already signalling. BTC backed borrowing demand was never the constraint. It was the absence of venues built to handle it, and when Spark built one, capital followed. Borrow & Lend here - app.spark.fi/borrow

SparkLend’s ETH borrow market is currently operating below broader market borrowing rates. Current conditions: • ETH borrow rate: ~1.84% • $743M borrowed • 70% utilization • 90% kink utilization This is a function of how the market is parameterized. The variable borrow rate at the kink tracks the 2-day average stETH yield minus 10bps, aligning borrowing conditions more closely with ETH staking dynamics. As long as utilization remains below the kink, the market avoids the aggressive rate escalation seen in high-utilization environments. The goal isn’t temporary rate competition. It’s scalable ETH-denominated credit infrastructure with more predictable liquidity conditions. Borrow here - app.spark.fi/borrow

Reminder: AMA Happening in an hour!

Stablecoin yield is evolving fast. Users are no longer just chasing returns. They want transparent, sustainable, and institutional-grade onchain yield. Join today’s AMA hosted by @MariaV54 with guest @hexonaut, CEO & Co-founder of Phoenix Labs and core contributor behind @sparkdotfi, to explore how Spark is powering the next generation of onchain savings. 🎁 $200 for 10 winners who 🔹 Follow @Gate & @sparkdotfi 🔹 Like & RT 🔹 Join the AMA 🗓 May 14, 1:30 PM UTC See you there: x.com/i/spaces/1oKMv…

When the Credora rating launched, @sparkdotfi Savings USDT had $307M in TVL. Today: $1.2B.

@Zyfai_ @ethereum ⚡️

🥉 @sparkdotfi ETH vault on @ethereum ・ 1.82% base APY + 2.47% rZFI APY = 4.29% total APY ⬆️ Spark combines strong yield with one of the safer profiles on the market, while also distributing points to depositors.

The hard part is not finding yield. It is knowing when to move and when not to. That is where Zyfai Agents have the edge. Here are last week's top USDC and ETH opportunities 👇🧵