Spark, a Maker SubDAO-built DeFi infrastructure, has deployed $100 million in new DAI liquidity with Morpho Blue, Morpho’s lending protocol. This transfer permits customers to borrow Ethena’s stablecoins, USDe and sUSDe, at extremely environment friendly leveraged positions backed by MakerDAO.
Ethena’s USDe is backed 1:1 to the US greenback and collateralized with institutional custodians, together with Fireblocks, Copper, Ceffu and Cobo. sUSDe is a price accruing “web bond,” or a staked model of the USDe asset.
Along with creating new DAI markets, a DAI vault has been constructed on MetaMorpho, a protocol that allows vaults to be created on Morpho Blue to make sure that DAI liquidity is allotted to those markets. Efficiency charges on the vault shall be initially set to zero, and Maker’s Direct Deposit Module (DDM) will obtain all charges accrued.
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This collaboration has largely been pushed by MakerDAO’s endgame plan, with Spark protocol being a part of a newly shaped SubDAO within the Maker ecosystem. Sam MacPherson, the CEO and co-founder of Phoenix Labs — the infrastructure firm behind Spark — famous in a press launch reviewed by Blockworks that this collaboration will unlock novel alternatives for the DeFi lending ecosystem.
“MakerDAO’s groundbreaking SubDAO dynamic has enabled this growth in addition to the general fast development of Spark. It’s a testomony to the effectivity of DeFi when a brand new product launches with a killer worth proposition and succeeds within the method which Spark has finished,” MacPherson stated.
Whereas SparkLend’s preliminary lending infrastructure utilized Aave v3’s codebase, the choice to broaden its capabilities utilizing Morpho is pushed by the programmability of Morpho Blue, which allows its customers to decide on threat parameters and customise lending swimming pools.
“It’s thrilling to see Morpho’s trustless and environment friendly infrastructure method to lending being embraced by DeFi’s largest and fastest-growing protocols.” Morpho Labs CEO and co-founder Paul Frambot remarked in a press launch. “Customers will have the ability to borrow DAI with a much wider variety of collateral, enormously increasing the scope of lending and borrowing alternatives for customers.”
Maker’s determination to work with Morpho comes quickly after blockchain analytics firm Gauntlet terminated its contracted work as threat steward for Aave and have become a Morpho Labs threat curator. It additionally follows Aave’s determination to exclude Morpho customers from its newest alignment reward program.
