Contango\u2019s Spark integration comes one month after launching Aave-based perpetuals<\/p>\n
SparkLend, the DAI-focussed lending protocol and MakerDAO subDAO, now facilitates decentralized perpetuals following an integration by Contango.<\/p>\n
Contango announced its permissionless Spark integration on Nov. 28, allowing users to enter into leveraged perpetual positions by leveraging Spark\u2019s liquidity via recursive lending. With Spark currently deployed on both Ethereum and the Gnosis Chain sidechain, the launch marks Contango\u2019s first multi-chain expansion.<\/p>\n
\u201cSpark\u2026 enables deep liquidity resources, which Contango is now leveraging to expand its offerings to its users,\u201d Contango said. \u201cTraders can now benefit from greater liquidity on a Layer 1 chain, as well as cheap fees and fast transactions on L2s.\u201d<\/p>\n
Users who trade Contango perps via Spark will qualify for the forthcoming SPK airdrop<\/a>. Contango noted that U.S.-based users will not be eligible for the airdrop.<\/p>\n The news follows Contango launching<\/a> perpetual contracts leveraging liquidity from Aave, the leading lending protocol on Ethereum, last month.<\/p>\n The news comes as Spark is posting impressive growth, with the protocol surpassing $1B<\/a> in total value locked (TVL) for the first time two weeks ago.<\/p>\n Spark also doubled its borrowing limit to $800M last week. According to Block Analitica, users have taken out $636M<\/a> worth of loans from the protocol, a 120% increase in 30 days. The value of assets supplied to the protocol is also up 78% over the same period at $1.67B.<\/p>\n Contango utilizes \u201clooped\u201d or recursive lending to build leverage perpetual positions via popular web3 money markets for users.<\/p>\n Its product uses flash loans to enter into positions, repeatedly borrowing assets and then depositing the lent funds as collateral to build leveraged exposure to assets. Contango integrated with Aave and Spark, two of the top four lending protocols by TVL to ensure deep liquidity for users.<\/p>\nSpark Protocol\u2019s growth<\/h2>\n
Web3 money market perps<\/h2>\n