# Unprecedented Capital Movement of $2 Billion in DeFi Ecosystem

Over the past three months, the DeFi ecosystem has witnessed an unprecedented capital movement with $2 billion in real-world asset (RWA) tokenization funds being allocated. At the center of this capital shift is a new on-chain management platform, Spark, which is quickly expanding its presence.

As of June 12, 2025, Spark holds the eighth position in total value locked (TVL) among all DeFi protocols per DefiLlama, and ranks third in the lending sector.

# Spark: Beyond Basic Deposit and Loan Protocols

Spark is not merely a deposit and loan protocol. It integrates three functions—Savings, Lending, and the Liquidity Layer—into a unified stack. This system strategically allocates trillions of dollars in stablecoins across traditional finance and the DeFi ecosystem in accordance with governance policies.

Distributed assets generate returns from fixed-income deposits, real-world asset investments, and protocol partnership fees, which users can earn through an automated structure. Spark’s core identity lies in this “on-chain capital allocation engine.”

# Origin and Growth Within MakerDAO’s Ecosystem

Launched in 2023 as part of MakerDAO’s Endgame plan, Spark aims to reduce dependence on centralized stablecoins and create a self-sustaining ecosystem through its own asset management income. MakerDAO rebranded to “SKY” and introduced Spark as the first executing entity in this transition.

Starting as one of MakerDAO’s sub-DAOs, known as “Stars,” Spark has rapidly evolved into an on-chain asset management platform. Its primary role is to supply stablecoin liquidity across the DeFi ecosystem, leveraging this liquidity to generate profits. As of June 2025, Spark manages assets worth around $2.1 billion, with an estimated annual revenue exceeding $130 million.

# Integrated Modules: Deposit, Lending, Liquidity Layer

To actively allocate Sky’s balance sheet to external asset markets, Spark integrates three core modules—Savings, Lending, and the Liquidity Layer—within a single stack. This structure elevates Spark beyond a simple DeFi lending platform, positioning it as a pivotal hub for coordinating liquidity between digital and real assets.

### Spark Savings

The foundational component, Spark Savings, allows users to deposit assets like USDC, USDS, and DAI in exchange for interest-bearing tokens such as sUSDC and sUSDS. These tokens accumulate compound interest in real-time and can be transferred between wallets or used as collateral since they follow the ERC-20 standard. As of June 11, 2025, the Sky Savings Rate (SSR) stands at an annual 4.98%, without any platform fees or slippage.

With a cumulative deposit amount of $3.8 billion, Spark Savings is the largest in the interest-earning stablecoin token market. The SSR functions similarly to a central bank’s base rate and is fixed through governance, offering depositors predictable, stable returns.

### SparkLend

SparkLend, a fork of AAVE v3, employs a “governance-based fixed interest rate” rather than market utilization for interest rate determination. Users can use high-efficiency collateral like ETH, cbBTC, wstETH, and rETH to borrow USDS. The low-volatility fixed rates aid in risk management.

Monthly average borrowing rate fluctuations are a mere 0.01%, making SparkLend particularly advantageous for users needing sophisticated fund management, such as DAO treasuries or institutions. Currently, SparkLend’s TVL exceeds $3.5 billion, with all borrowings facilitated through Sky’s Direct Deposit Module (DDM), ensuring predictable funding and mitigating liquidity exhaustion fears.

### Spark Liquidity Layer (SLL)

The third module, Spark Liquidity Layer (SLL), automatically borrows stablecoins like USDC and USDS held by Sky and transfers them across multiple chains such as Ethereum, Base, Optimism, Arbitrum, and Unichain before depositing them into major protocols like Aave, Morpho, Pendle, and Athena.

These funds generate revenue while supplying liquidity to external protocols. Currently, SLL has moved $3.9 billion, with $3.5 billion on Ethereum and $380 million on Base. Over the first four months of 2025, more than $2.6 billion was deployed across various DeFi and RWA strategies, including an additional $1 billion allocated to BlackRock’s BUIDL, SuperState, and Centrifuge RWA token pools in May.

The generated revenues cycle back to depositors. For instance, over $800 million is deposited in BlackRock’s BUIDL fund, which invests in U.S. Treasury securities and repos to generate stable cash flows. SuperState and Centrifuge respectively receive $300 million and $200 million, while $100 million was also assigned to DeFi-based RWA platform Maple, diversifying Spark’s asset allocation strategy.

# Security and Governance

Spark provides transparency and automation in distributing returns based on real-world asset yields, such as U.S. Treasury bill returns, to DeFi users. Users gain exposure not only to interest but also to stable returns from real-world assets.

From a security standpoint, Spark has established a high-level system, audited by major security firms like ChainSecurity and Cantina, and operates a bug bounty program with rewards up to $5 million. Significant fund movements require on-chain voting and multi-signature approvals, making all related transactions verifiable by anyone.

# Spark’s Growing Ecosystem

As of June 2025, Spark’s ecosystem boasts a total deposit amount of $5.4 billion, with a 30-day TVL growth rate of 95%, the steepest among the top 10 DeFi protocols. Annualized revenue reaches $185 million, with over 170,000 active wallets. According to data from DefiLlama, these figures denote structural growth rather than temporary events.

For domestic users, Spark offers attractive opportunities. In Korea, where dollar-based asset management is highly regulated, users can deposit USDC via MetaMask and earn 4.5% interest. Additionally, deposits and loans on Optimism Mainnet offer up to 2 million OP in incentives, providing alpha opportunities for early participants. Domestically, DAOs can enhance operational efficiency by converting USDC vaults to sUSDS, gaining both interest income and collateral usability.

Spark also promotes decentralization across its ecosystem, encouraging active community governance. Recently, Spark launched a SPK airdrop campaign targeting 50,000 users. Besides SparkLend users, it includes holders of USDS, sUSDS, DAI, sDAI, and xDAI across major DeFi chains and protocols like Aave, Centrifuge, Morpho, Pendle, Lido, Unichain, and Optimism Mainnet. This approach showcases Spark’s role in the core DeFi ecosystem and its status as a decentralized financial infrastructure.

# Challenges and Future Prospects

Challenges remain, such as regulatory uncertainties around RWA custody and governance execution speed. Nevertheless, Spark’s structural design, governance participation rate, and revenue metrics suggest it is fundamentally transforming DeFi liquidity allocation.

Operating deposit, lending, and liquidity placement within a vertically integrated system under central-bank-like control, Spark’s model has the potential to set a new DeFi standard. Managing billion-dollar transactions within a single protocol, Spark has transitioned from a simple DeFi product to an on-chain financial infrastructure.