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Spark, a Maker SubDAO-built DeFi infrastructure, has deployed $100 million in new DAI liquidity with Morpho Blue, Morpho\u2019s lending protocol. This move allows users to borrow Ethena\u2019s stablecoins, USDe and sUSDe, at highly efficient leveraged positions backed by MakerDAO.<\/p>\n
Ethena\u2019s USDe is backed 1:1 to the US dollar and collateralized with institutional custodians, including Fireblocks, Copper, Ceffu and Cobo. sUSDe is a value accruing \u201cinternet bond,\u201d or a staked version of the USDe asset.<\/p>\n
In addition to creating new DAI markets, a DAI<\/a> vault has been built on MetaMorpho, a protocol that enables vaults to be created on Morpho Blue to ensure that DAI liquidity is allocated<\/a> to these markets. Performance fees on the vault will be initially set to zero, and Maker\u2019s Direct Deposit Module (DDM) will receive all fees accrued.<\/p>\n Read more:<\/strong> Maker moves to meet demand for DAI<\/a><\/p>\n This collaboration has mostly been driven by MakerDAO\u2019s endgame plan<\/a>, with Spark protocol being part of a newly formed SubDAO in the Maker ecosystem. Sam MacPherson, the CEO and co-founder of Phoenix Labs \u2014 the infrastructure company behind Spark \u2014 noted in a press release reviewed by Blockworks that this collaboration will unlock novel opportunities for the DeFi lending ecosystem.<\/p>\n \u201cMakerDAO<\/a>\u2019s groundbreaking SubDAO dynamic has enabled this development as well as the overall rapid growth of Spark. It is a testament to the efficiency of DeFi when a new product launches with a killer value proposition and succeeds in the manner which Spark has done,\u201d MacPherson said.<\/p>\n While SparkLend\u2019s initial lending infrastructure utilized Aave<\/a> v3\u2019s codebase, the decision to expand its capabilities using Morpho is driven by the programmability<\/a> of Morpho Blue, which enables its users to choose risk parameters and customize lending pools.\u00a0<\/p>\n \u201cIt\u2019s exciting to see Morpho\u2019s trustless and efficient infrastructure approach to lending being embraced by DeFi\u2019s largest and fastest-growing protocols.\u201d Morpho Labs CEO and co-founder Paul Frambot remarked in a press release. \u201cUsers will be able to borrow DAI with a much broader diversity of collateral, greatly expanding the scope of lending and borrowing opportunities for users.\u201d<\/p>\n Maker\u2019s decision to work with Morpho comes soon after blockchain analytics company Gauntlet terminated its contracted work<\/a> as risk steward for Aave and became a Morpho Labs risk curator<\/a>. It also follows Aave\u2019s decision to exclude Morpho users<\/a> from its latest alignment reward program.<\/p>\n
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