Spark Vaults Big Expansion: ETH cap increased to 250,000, USDC surpasses $1 billion

DeFi Lending Protocol Spark Announces Increase in Spark Savings Limit, an Important Step in Its Vault Expansion Plan. The on-chain USDC limit on Ethereum has been raised to $1 billion, the USDC limit on Avalanche to $500 million, and the ETH limit to 250,000 ETH. This adjustment reflects Spark’s response to the growing demand for lending and borrowing, as well as the current activity level in the DeFi market.

Specific Data on Limit Adjustments

The recent increase in savings limits by Spark involves multiple chains and assets:

From the data, it is clear that Spark places significant importance on ETH, with a limit of 250,000 ETH, roughly equivalent to $7.35 billion (based on current ETH price of $2,939.31). This indicates an increased support for mainstream assets by the protocol.

Market Context: High Ecosystem Activity

The timing of this limit adjustment is noteworthy. According to the latest on-chain data, whales are very active on Spark:

• Whale “7 Siblings” deposited 596,800 ETH (about $1.76 billion) across 8 addresses, becoming the largest depositor on Spark
• Trend Research holds 651,300 ETH (about $1.92 billion) for lending
• Both whales employ a “buy more after a big drop” strategy, frequently borrowing stablecoins to bottom fish

These data points show that lending and borrowing demand on Spark is currently robust, with demand for ETH as collateral far exceeding previous limit settings. The increase in limits is a direct response to this market demand.

Protocol-Level Coordinated Actions

It is also worth noting that the Spark community recently proposed an “Adjustment of SubDAO Proxy Management Mechanism,” including:

• Shortening the risk capital requirement retroactive period from 12 months to 3 months
• Reducing product guarantee funds from 5 million USDS to 1 million USDS
• Increasing the standard repurchase rate from 10% to 25%

These adjustments aim to lower the threshold for initiating repurchases, indicating that Spark is accelerating protocol revenue distribution and buyback processes. Coupled with the increase in limits, it shows Spark is advancing vault scale and ecosystem activity on multiple fronts.

Future Points of Attention

Vault Scale Growth Potential

The increase in limits opens space for vault expansion, but actual growth depends on market participation. The ongoing accumulation by whales indicates demand exists, and the limit adjustment may further unlock this demand.

Impact of ETH Price

ETH is currently priced at $2,939.31, down 10.94% over the past 7 days. In a lower-price environment, raising the ETH limit could attract more bottom-fishers to increase exposure through borrowing, potentially driving short-term demand.

Balance of Risk Management

Raising the limits also increases the protocol’s risk exposure. Whether Spark can balance scale expansion with risk control will directly impact its long-term stability.

Summary

Spark’s increase in savings limits is a positive response to market demand. The ETH limit rising to 250,000 and USDC doubling reflect ongoing activity in the DeFi lending market. Coupled with frequent whale deposits and community governance adjustments, it indicates Spark is entering a period of accelerated expansion. This expansion demonstrates market demand for DeFi lending and borrowing but also tests the protocol’s risk management capabilities. Future focus should be on actual vault growth and the specific impact of this adjustment on the ETH lending market.