Ethena’s USDe and sUSDe were further integrated into Spark’s Liquidity Layer today via enabling direct holding of USDe and sUSDe, up to a total allocation of $1.1 billion in the near term. Onboarding Ethena into the Spark Liquidity Layer will allow Spark to access Ethena rewards directly rather than via lending markets.

Spark provides liquidity to some of the largest DeFi platforms in the space such as Aave, Morpho and Base. A direct allocation to sUSDe enables Spark to access sUSDe’s APY, which averaged 18% in 2024 and powered some of DeFi’s largest protocols, setting the new benchmark rate for DeFi in the process.

Further integrating with Spark represents the next step in the evolution of sUSDe throughout DeFi, as more and more protocols look to gradually access Ethena to potentially optimize their balance sheets. The Spark integration enhances the accessibility of USDe and sUSDe, allowing users to benefit from more crypto-native assets.

As part of the same proposal, a $200m DAI allocation towards Pendle's May PT sUSDe market, via Morpho, was approved, opening extra capacity to shift more of Spark’s allocation to Morpho markets if they see fit. May PT sUSDe positions are currently earning 19.6% fixed APY, while sUSDe’s APY is currently 11%.

Allocation Details

In the approved proposal on the Sky governance forum, Block Analitica recommend a maximum exposure of ~20% of the lesser of USDS + DAI or USDe supply. Based on current supply figures, a max of 20% of USDe supply would be approximately 1.15bn. If the allocation was all in direct exposure to USDe or sUSDe rather than Morpho, that would result in a cap of ~885m, given the 130% risk-weight on direct allocation recommended by Block Analitica versus Morpho markets (1.15bn/130%). Alternatively, Spark can add direct Ethena allocations to their existing Morpho positions to reach a higher overall Ethena allocation.

Either way, the potential increase could range from $260m to just under $500m in additional Spark allocation to Ethena, as detailed in the below table.

The crypto industry is on the brink of a new era of interoperability, and by joining forces with Spark, we are accelerating this movement.

More details on the partnership in Spark’s blog here.