MakerDAO, the second largest decentralized finance (DeFi) protocol is set to leave the Ethereum blockchain. According to an analyst named Ignas, the crypto lending platform would like to build its own ecosystems. An initiative that comes as the protocol Curve Finance and Aave seek to issue their own stablecoins.
MakerDAO announces the arrival of the Spark protocol
The death of Nikolai Mushegian did not dampen the ambitions of the MakerDAO lending platform. Indeed, it was on Twitter that the researcher Ignas announced that the DeFi Pioneer MakerDAO will develop the Spark protocol. Which will be based on the smart contracts of the Aave lending protocol. This protocol intends to take advantage of DAI, an Ethereum blockchain token with a constant value of one dollar. It is also the most widely used stable digital currency after Tether (USDT) and the key to the MakerDAO system.
The Spark protocol proposed on February 08 will amplify the functionality of MakerDAO. This, by providing a liquidity market conducive to borrowing scalable crypto assets with variable rates.
The Spark Lend, the first product of said protocol, will support cryptos such as ETH, DAI, and wrapped derivatives. Its objective: to allow users to borrow DAI at a savings rate set at 1%.
This very low savings rate was intended to migrate users from USD Coin (USDC) to DAI (DSR). However, the Aave and Compound protocols did not integrate the stablecoin due to a lack of conviction. Hence the need to create a new ecosystem.
Separately, Aave is set to launch its own DAI to rival stablecoin GHO. Likewise, Compound just recently launched its version 3 including only USDC for borrowings. Nevertheless, other crypto assets can be provided as collateral, the researcher clarified.
In response, developers at Spark and Phoenix Labs are announcing the imminent arrival of new products and services for 2023. These include EtherDAI as well as cross-chain and Teleport Maker support.
Note that the EtherDAI asset is a Liquid Staking Derivative (LSD) for Ethereum (ETH). It is also the critical element in MakerDAO’s plan to make DAI the unbiased global currency.
However, in exchange for all the hard work done by Aave, SPark Protocol will send him 10% of the profits made in the DAI market. This mark of gratitude to Aave Protocol will last for the next two years.
Conclusion
In short, the arrival of the Spark protocol marks an important step for the lending platform. Ewell, Maker is likely heading for the top spot among crypto lending interfaces. Pending its launch next April, a governance ballot was launched. Finally, a DAI loan vault will therefore be opened on Maker with an estimated debt cap of $200 million.
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