Spark: It has become the 16th largest decentralized finance (DeFi) protocol in the world

With strong growth over the past month, Spark has become a global DeFi protocol with a monthly growth of 99% and a locked-in value of more than $1 billion.

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According to DefiLlama, the Spark lending protocol, which was launched in May this year, has gained momentum, with the total value locked (TVL) having crossed the $1 billion mark, reaching a new high.

Spark grew by 99.8% in just one month, becoming the 16th largest decentralized finance (DeFi) protocol in the world.

The Spark protocol was created by MakerDAO, an autonomous decentralized organization that runs on the Ethereum blockchain and issues DAI stablecoins. Therefore, the focus of the solution is to provide loans to DAI token users.

It acts as a "lending marketplace" where users can borrow or offer assets such as Ethereum (ETH), staked Ether (stETH), DAI, and staked DAI (sDAI) while also promising competitive interest rates.

According to DefiLlama data, the current DAI deposit APY on Spark is 4.86%, and the deposit value reaches $400 million.

Spark's commitment is to improve the lenderability of DAI, increase liquidity, provide users with better interest rates, provide a yield-generating version of DAI, and provide more liquidity options.

The protocol is part of the MakerDAO Endgame initiative, which proposes to make DAI a floating asset, initially collateralized by real-world assets (RWAs).

Under the Endgame plan, DAI will remain pegged to the U.S. dollar for three years, during which time Maker plans to accumulate as much ETH as possible to eventually increase the proportion of decentralized collateral.

DAI is currently the third-largest stablecoin with $5.3 billion in circulation and $25.9 billion in market capitalization.