Since its launch in November 2024, the Spark Liquidity Layer (SLL) has been instrumental in optimizing stablecoin liquidity across DeFi. Today, Spark is taking a significant step by allocating stablecoins directly through the SLL to Ethena, with plans to ramp up to a total allocation of $1.1B.

This integration enhances support for Ethena by enabling Spark to hold USDe and sUSDe directly on its balance sheet, further improving capital efficiency. Spark has supported (s)USDe since March of 2024 via over-collateralized Morpho vaults.

For those looking to dive deeper into how the Spark Liquidity Layer works, read more here.

The Spark Liquidity Layer: Optimizing Stablecoin Liquidity

Before the integration with Ethena, the SLL balance sheet included USDC, USDS, and sUSDS, which were used to balance liquidity and optimize returns across the ecosystem. By onboarding Ethena’s USDe and sUSDe, Spark adds these tokens to its portfolio, ensuring high-liquidity pools within the Ethena ecosystem. This integration enables seamless liquidity flow and has the potential to generate significant returns, with Spark earning up to approximately 27% APY during favorable market conditions.

This marks a significant milestone in the SLL’s mission to automatically balance stablecoins across protocols, ensuring efficient liquidity deployment and maximizing returns.

Why Savings USDS Is the Best Option in DeFi

Savings USDS continues to offer unparalleled stability and rewards, making it the go-to choice for DeFi participants. Its stable rate, determined by decentralized governance in the Sky ecosystem, is supported by Sky’s diverse revenue streams, including over-collateralized DeFi loans and real-world investments.

Here’s why Savings USDS stands out:

1. Predictable and Stable Rates: Users enjoy consistent rewards, unaffected by pool utilization or market volatility. Since December 8, 2024, the Savings rate has been 12.5%.

2. Efficient Revenue Generation: Spark contributes approximately $232M in annual revenue to the Sky ecosystem, and with Ethena now part of SLL, this figure is projected to grow in line with the growth of Ethena.

3. Adaptability Across Markets: Savings USDS thrives in both bullish and bearish market conditions. It leverages DeFi yields during high-growth periods and real-world investments when DeFi returns soften.

4. Liquidity Assurance: With $2.3B held in USDC, Savings USDS ensures users can exit their positions efficiently, even at significant volumes.

This combination of reliability, transparency, and high liquidity makes Savings USDS the most compelling choice for DeFi yields.

Looking Ahead to Expanded Opportunities

The addition of Ethena showcases Spark’s commitment to innovation and scalability. By enhancing liquidity management and revenue generation, Spark solidifies its vision of becoming the yield engine for DeFi.

This is just the beginning. In the coming weeks, Spark will allocate to additional protocols through the Spark Liquidity Layer, further diversifying its reach and reinforcing its role as a cornerstone of DeFi liquidity.

If you're ready to experience the stability and rewards of Savings USDS, try it today on spark.fi/savings. Savings USDS is available on both Ethereum mainnet and Base.

Join the Spark ecosystem and take advantage of the most reliable rewards option in decentralized finance.