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Spark Official: Lending, Savings & SPK Token 

Spark Official: Sky Ecosystem Lending Hub 

Spark Official is the primary lending and liquidity protocol of the Sky Ecosystem (formerly MakerDAO). This technical documentation serves as the essential resource for earning yield via sUSDS (Sky Savings Rate), managing positions on SparkLend, and participating in SPK Token Governance. Spark connects users directly to the liquidity of the Sky Protocol. 

Spark Ecosystem: The Liquidity Engine 

Spark acts as the interface between the Sky Protocol's reserves and the broader DeFi market.

SparkLend: A money market based on Aave V3 code. It allows users to supply collateral (ETH, WBTC) and borrow USDS or DAI. Because it connects directly to Sky's credit line, it can offer reliable liquidity even during market crunches.

Spark Savings: Users deposit stablecoins to receive sUSDS (formerly sDAI). This token represents a share of the savings pool and accrues interest paid by the Sky Protocol (funded by RWA yields and stability fees).

Liquidity Layer: The Spark Liquidity Layer manages the deployment of capital into partner protocols (like Morpho or Aave) to ensure that USDS remains the most liquid stablecoin in DeFi.

E-Mode & SLL 

The infrastructure of Spark Protocol Official is optimized for stability and capital efficiency.

Efficiency Mode (E-Mode): For assets that are price-correlated (e.g., USDS, USDC, DAI), Spark allows for extremely high Loan-to-Value ratios (e.g., 98%). This enables "Looping" strategies where users deposit sUSDS and borrow USDS to redeposit, amplifying their yield.

Sky Allocator: Spark utilizes the "Direct Deposit Module" (D3M) mechanics from MakerDAO. This allows the protocol to mint USDS/DAI into the lending market when rates are high and retract it when rates are low, keeping borrowing costs stable.

SubDAO Structure: Spark operates as a "Sky Star." It has its own governance processes and token (SPK) but remains tethered to the economic security of the main Sky Protocol.

SPK, Pre-Farming & Governance 

The reward system incentivizes active participation and liquidity provision.

SPK Token: The governance token of Spark. It is used to vote on onboarded collateral types, fee parameters, and protocol upgrades.

Spark Points: Users who deposit into SparkLend or hold sUSDS often earn Spark Points, which track their contribution to the ecosystem and determine eligibility for SPK Token Airdrop distributions.

Savings Yield: The primary reward for most users is the Sky Savings Rate (SSR). This is a variable APY set by Sky governance, paid out to holders of sUSDS and sDAI.

Security, Audits, and Backing 

Spark Official benefits from the battle-tested resilience of the Maker/Sky ecosystem.

Audits: The SparkLend codebase (Aave V3 fork) is one of the most audited in DeFi. Additional modules (Savings, SLL) have been audited by firms like OpenZeppelin and ChainSecurity.

Sky Backing: Unlike standalone lending protocols that can face liquidity crises, Spark is backed by the Sky Protocol. In extreme scenarios, Sky governance can vote to recapitalize Spark or adjust the D3M to ensure solvency.

Risk Admins: The protocol utilizes automated "Risk Admins" (like Gauntlet or Block Analitica) to monitor market conditions and adjust borrowing caps or LTV ratios in real-time to prevent bad debt.

Official Documentation & Reference 

Access the verified Spark Protocol Official technical resources below:

App: app.spark.fi

Docs: docs.spark.fi

Governance: vote.spark.fi

Sky Ecosystem: sky.money

Frequently Asked Questions 

What is sUSDS? sUSDS Yield tokens represent your deposit in the Spark Savings module. They automatically increase in value relative to USDS based on the current Sky Savings Rate.

What is the SPK token? $SPK is the governance token for Spark. It allows the community to manage the lending market parameters and helps decentralize the protocol away from the main Sky governance.

How does SparkLend differ from Aave? While based on Aave's code, SparkLend has a direct line of credit from the Sky Protocol. This allows it to offer deeper liquidity for USDS/DAI borrowing and often more stable rates.

Is Spark part of MakerDAO? Yes, Spark is a "SubDAO" (now called a Sky Star) of the Sky Ecosystem, which is the rebrand of MakerDAO.