MakerDAO unveils token airdrop proposal for Spark lending protocol

is a lending protocol introduced by MakerDAO that provides DeFi loans by sourcing liquidity directly from Maker. It accepts assets such as ether, staked ether, and Dai as collateral.A subDAO will be an independent decentralized autonomous organization within MakerDAO. As part of the endgame plan, several subDAOs, like Spark, are anticipated to be created — each governed by their own tokens.

The goal is to incentivize Spark’s active usage despite it offering a 5% yield — previously 8% — on Dai deposits, known as the Enhanced Dai Savings Rate, said Christensen.to 8% earlier this week, leading to significant capital inflows as users leveraged borrowing arbitrage opportunities. Users borrowed Dai at lower rates and deployed it for higher yields in EDSR. Christensen later stated that the rate would come down to 5% as Dai deposits rapidly crossed the designated threshold on deposits.

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