Spark Savings enables stablecoin holders to earn a competitive risk-adjusted rate in DeFi at scale, with minimal liquidity constraints. This rate is determined by the Sky Savings Rate, which is set by Sky governance based on market conditions and Sky’s revenue. Unlike variable DeFi lending rates that automatically fluctuate based on utilization, the Sky Savings Rate does not auto-fluctuate and adjusts only through governance decisions—currently around $400M per year. Of this revenue, 25% originates from SparkLend and the Spark Liquidity Layer.
Spark Savings launched with a single vault, the USDS Savings Vault, allowing users to deposit stablecoins and hold their positions in sUSDS. Spark does not charge any additional fees for accessing Savings, and there is no unlocking period for withdraw of deposits or accumulated rewards. As of now, the USDS Savings Vault has reached a total value locked (TVL) of $4B.
Building on the success of the USDS Savings Vault and reinforcing Spark’s role as the stablecoin growth engine for DeFi, Spark is introducing the USDC Savings Vault. This new vault will offer the same benefits as the USDS Savings Vault, including the Sky Savings Rate, which is currently 6.5%. When users deposit USDC into the vault, they will receive sUSDC, representing their position within the vault.
FAQ: USDC Savings Vault
What is the USDC Savings Vault? The USDC Savings Vault allows users to deposit USDC and earn the Sky Savings Rate (currently 6.5%) while holding their position in sUSDC.
How does the USDC Savings Vault work? Users deposit USDC into the vault and receive sUSDC, representing their savings position. When users deposit USDC into the vault, they receive sUSDC tokens, which track both their original deposit and accumulated rewards. The vault earns the Sky Savings Rate, a rate that Sky governance may change over time based on market conditions and Sky’s revenue. Rewards are distributed regularly, and users can redeem their sUSDC for their initial deposit plus earned rewards.
Where does the yield come from? It comes from Sky's over-collateralized DeFi loans (one of these loans is the one Sky gives to Spark and Spark manages through Spark Liquidity Layer) and real-world investments.
What is the Sky Savings Rate? The Sky Savings Rate (SSR) is a risk-adjusted rate set by Sky governance based on market conditions and Sky’s revenue. It determines the rate at which rewards accrue for sUSDC holders and may be adjusted over time based on ecosystem factors.
Why is the Sky Savings Rate more stable than other DeFi rates? The Savings Rate does not automatically fluctuate based on short-term market conditions or liquidity pool utilization, unlike traditional variable DeFi rates. Instead, it is set by Sky governance and adjusts only based on governance decisions, providing users with more stability and transparency in their earnings.
What’s the max withdrawal capacity of the vault? Users can withdraw at any time up to the amount available in Sky reserves, which currently stands at $2.71B.
Are there any additional fees to use the USDC Savings Vault? No, Spark does not charge any additional fees for accessing the USDC Savings Vault.
Where can I access the USDC Savings Vault? The USDC Savings Vault is available on spark.fi and can be accessed on Mainnet, Base, and Arbitrum.
For more information about Spark, visit spark.fi, Twitter or Discord