Spark WETH is a lending market on Spark Protocol, the DeFi lending platform within the Sky ecosystem (formerly MakerDAO). Spark enables users to supply WETH and earn yield from borrowers while integrating with Sky's stablecoin infrastructure.
How Spark Protocol Works
Spark Protocol operates as an Aave V3 fork customized for the Sky ecosystem:
Deposit WETH into Spark's lending pool
Receive spWETH tokens representing your deposit
Earn interest from borrowers
Withdraw WETH plus accrued yield anytime
Sky Ecosystem Integration: Spark is designed to support USDS (Sky's stablecoin, successor to DAI) and integrates with Sky's Savings Rate and other ecosystem products.
Leveraging ETH positions against stablecoin collateral
Accessing liquidity within the Sky ecosystem
Recursive strategies with liquid staking tokens
Sky (MakerDAO) Ecosystem
Spark is part of the broader Sky ecosystem:
USDS: The new stablecoin replacing DAI
SKY: Governance token (replaced MKR)
Sky Savings Rate: Yield on USDS holdings
SparkLend: The lending protocol
The ecosystem completed its rebrand from MakerDAO to Sky in 2024-2025.
Risk Disclosures
Smart Contract Risk: Spark is an Aave V3 fork with custom modifications. While Aave code is battle-tested, Spark-specific changes introduce additional risk surface.
Protocol Governance Risk: Sky DAO controls Spark parameters. Governance decisions could affect rates and risk parameters.
Ecosystem Risk: Deep integration with Sky means Spark's health is tied to the broader ecosystem's stability.
Oracle Risk: Accurate price feeds are critical for liquidation mechanics.
Utilization Risk: High utilization could temporarily prevent withdrawals.
Transition Risk: The MakerDAO to Sky transition introduced new tokens and mechanisms that are still maturing.
Disclaimer: APY and TVL figures are based on on-chain data and may fluctuate. Past performance does not guarantee future results. DeFi investments carry smart contract, market, and liquidity risks. This content is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing.
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