Spark Protocol is the lending arm of MakerDAO, offering competitive rates for DAI borrowing and sDAI (savings DAI) for earning yield.
Why Spark?
Key Features:
- Borrow DAI at stable rates
- sDAI earns 5%+ savings rate
- Lower rates than many alternatives
- MakerDAO backing
Products:
| Product | Function | Rate |
|---|
| . . . . - | . . . . . | . . . |
| Spark Lend | Borrow DAI | ~5-7% |
| sDAI | Earn on DAI | ~5% DSR |
| SparkLend | Full lending | Variable |
Spark vs Aave
Spark focuses on DAI efficiency while Aave is more general purpose.
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Track your Spark positions with Fensory. Monitor borrows and sDAI.
Start Tracking →Step-by-Step Instructions
1
Go to Spark
Visit app.spark.fi and connect your wallet.
Tips
- ✓Available on Ethereum mainnet
- ✓Gnosis Chain also supported
2
Supply Collateral
Deposit ETH, stETH, or other supported assets.
Tips
- ✓wstETH is popular collateral
- ✓Check LTV for your asset
3
Enable as Collateral
Toggle the collateral switch for deposited assets.
Tips
- ✓Only collateral-enabled assets count
- ✓Increases borrowing power
4
Borrow DAI
Click Borrow, select DAI, enter amount. Review rate and health factor.
Tips
- ✓Fixed rate available for stability
- ✓Keep health factor above 1.5
5
Convert to sDAI (Optional)
Swap DAI to sDAI to earn the DAI Savings Rate while holding.
Tips
- ✓sDAI appreciates vs DAI
- ✓DSR is currently ~5%
6
Monitor Position
Watch health factor and rates. Repay before liquidation risk.
Tips
- ✓Set up monitoring alerts
- ✓Rates can change
