SparkLend at 888M borrowed USDS (and 1.4B total borrowed stablecoins), so it feels as good a time as any to review why SparkLend is the best place to borrow size onchain, and why institutions chose it. SparkLend is Spark’s very own onchain lending market, listing only a very select list of blue chip assets (cbBTC, wBTC, wstETH, weETH, WETH). It allows Spark to lend money in a controlled environment without delegating custody like one does with alternatives, and without relying on payroll external contractors for risk parameter setting (which can be very risky due to incentives misalingment). At SparkLend, Spark supplies ~97% of the stablecoins so we care deeply about the security of the funds. No long-tail collateral, rate limits, robust oracles, minimal rehypothecation and 24/7 monitoring. All of the above is the reason why SparkLend is such a good place to lend stables, but how about borrowers? Spark's unique position allows for two structural advantages: 1. Spark can mint USDS programmatically, and convert them in the SKY’s USDC PSM (~4B), this means that the USDS and DAI in SparkLend markets do not suffer cash drag from idle stablecoins, improving the financials substantially. 2. The above allows the system to service borrows programmatically at predetermined rates. Borrowers, large and small, can take funds knowing that the rate will stay the same, and take virtually as much as they want knowing that Spark will service them (within our security rate limits) and don’t have to dilly-dally while they wait for new suppliers to meet the borrows (and even after that, raise the rate) 发发发: fortune favours those who seek it, and work smart.

Market waking up to the advantages of our USDT product. Few things feel as good as watching a scalable product, powered by Spark's unique access, grow and provide the best liquid, risk-adjusted yield in the industry. There are two key reasons why Spark Savings USDT is the best in the industry: First, Spark operates in a generalised allocation structure, which we've built and optimised for many years now, and within governance-approved venues is able to programmatically rotate between them to get the best risk-adjusted opportunities wherever they are. Second, it does not suffer from the inefficiencies of being stuck running a simple onchain lending market, which in an attempt to diversify from crypto leverage demand they have now mixed tokenised financial instruments with blue chip crypto assets in the same pool, exposing stablecoin lenders to new tail events. A decent part of Spark Savings USDT backing is in SparkLend (~291M), which operates as overcollateralised blue chip crypto lending and is meant to be a way to capture the market's premium while it exists (and move away from it when it doesn't). Spark has strong governance controls and is incapable of updating the investment mandate without it, alongside a timelock. For institutional allocators, removing this trust layer is key. The industry is definitely getting more sophisticated and starting to weigh liquidity, risk and returns instead of optimistically trusting a brand. 722,000,000 now. 1,000,000,000 soon Ad astra.

$605M USDT is earning 3.75% with one of the strongest risk and liquidity profiles in the industry. Spark Savings USDT is an allocation system that balances risk, return, and liquidity for institutional depositors who actually care about all three. Historically USDT products hit the same wall: to scale, they have to route liquidity into something that can absorb size. For some, that means onboarding tokenized instruments where borrowers take large leverage against lenders' stablecoins. As part of the Sky system, Spark Savings taps into the USDS rate, and gets unique access as a Sky prime to scalable yield in a controlled environment. For serious players who want comfortable, professionally managed stablecoin yield, there really is no second best.

People are sleeping on what a beast the Spark Liquidity Layer (SLL) has grown into, and how sophisticated yet fundamentally safe and simple Spark's operation is now. The SLL is a smart-contract-governed system that routinely moves hundreds of millions between multiple protocols, across multiple chains, with strict rate limits and bounds on operations, while being aware of rates and liquidity levels and dynamically adjusting them to be at target with both. The SLL recently integrated Uniswap to kickstart Spark's FX layer, and is now heavily using it as both LP and user to efficiently move between different stable assets and strengthen the savings product's performance in both returns and liquidity, while reducing counterparty risk by settling these swaps atomically onchain. In just the past week, Spark routed $180M in volume through the USDT/USDS pool alone, which powers Spark Savings USDT and allows for institutional-grade yield by being liquid and low risk, with structurally higher rates than alternatives thanks to the broader USDS backing, which enables scalable yield. I think Spark is showcasing just how blockchain technology allows finance to operate at its highest level, minimising trust without compromising efficiency.