MakerDAO, which claims to be the “longest-standing” DeFi lending protocol and creator of DAI, the original decentralized stablecoin, has announced the official launch date of Spark Protocol, a MakerDAO-centric decentralized application.
Starting from May 9th, Spark Protocol will “serve as the underlying infrastructure for Spark Lend, a decentralized lending marketplace for supplying and borrowing crypto assets with a special focus on DAI.” The Spark Protocol launch is “part of the Endgame Era, a long-term restructuring improvement proposal for the DAO.”
Spark Protocol is “one of many innovations the Endgame Era will bring to the MakerDAO ecosystem.” MakerDAO provides liquidity to Spark Protocol “through a wholesale credit line in DAI, making Spark Protocol’s rates efficiently lower and predictable to its end-users.”
At the same time, thanks to its integration “with the PSM (MakerDAO’s Peg Stability Module), it will be possible for users to swap between DAI and USDC without slippage.”
Specifically, Spark Lend will “allow using ETH, stETH (Lido Staked ETH), and sDAI (a token that interacts with the DAI Savings Rate) as collateral for borrowing DAI.”
This will “provide a liquidity infrastructure for a retail-oriented user experience.”
One of the contributors to Spark Protocol is Phoenix Labs, “a research and development company that aims to introduce new decentralized products to the MakerDAO ecosystem.”
Sam MacPherson, CEO of Phoenix Labs, said:
“As MakerDAO continues to implement aspects of the Endgame Era, Spark Protocol’s introduction will fuel further adoption and use of DAI. Phoenix Labs contributed to Spark Protocol to support the long-term growth and innovation of MakerDAO. Spark Protocol connects the best DeFi products with Maker’s liquidity.”
Spark Protocol highlights MakerDAO’s “adoption of a retail-oriented approach, connecting MakerDAO’s competitive DeFi rates with the best solutions in DeFi.”
Furthermore, the launch symbolizes the DAO’s consistent workings toward the evolution of the MakerDAO ecosystem.
As noted in the update, MakerDAO is “the decentralized autonomous organization (DAO) that powers the longest-standing DeFi lending protocol and enables the creation of DAI, the original decentralized stablecoin.”
Governance of MakerDAO is “decentralized, with proposals tabled and voted on by the Maker Community, comprising people from all over the world.”
Utilizing an embedded governance mechanism, “the decentralized and self-sustaining Maker Community holds sole authority to enact changes to the Maker Protocol through on-chain voting using the native governance token, MKR.”
