Amidst notable market volatility, MakerDAO's Spark Protocol has witnessed a remarkable surge in deposits. The lending protocol, a creation of MakerDAO developers, experienced a staggering 750% increase in total value locked (TVL) within just four days. The TVL soared from $57.7 million on August 6 to $440 million, triggered by MakerDAO's decision to hike the DAI Savings Rate (DSR) from 3.3% to 8%.
This move was strategically aimed at promoting the adoption of DAI stablecoin and the DSR, with returns designed to adjust as TVL escalates. The deposits linked to DSR have tripled, surpassing $1 billion since the rate adjustment. Interestingly, Justin Sun, the Tron founder, executed a significant swap and deposit of assets within Maker.
In the competitive landscape of stablecoins, MakerDAO's rate hikes are pivotal to preserving DAI's market share. The emergence of platforms like Curve and Aave has introduced new possibilities for generating yields against stablecoin deposits.
The Spark Protocol, a derivative of Aave v3 with MakerDAO's approval, presents DAI holders with diversified yield opportunities and the ability to borrow against DAI collateral. This surge in Spark's prominence might be contributing to the ongoing volatility within Aave's DAI market, offering an alternative yield option.
Source: au.yahoo.com