• Thu. Feb 22nd, 2024

MakerDAO to launch Spark lending platform to rival Aave

  • Aave, a crypto lending platform, is currently one of Ethereum’s largest DeFi products.
  • MakerDAO, on the other hand, facilitates the generation of DAI stablecoin.
  • MakerDAO is planning to launch a crypto lending platform called Spark Lend to rival Aave.

MakerDAO, the DAO of the giant decentralized finance (DeFi) protocol Maker and the facilitator of the generation of DAI stablecoin has unveiled its plans to launch a crypto lending platform to rival the Aave lending protocol.

The plan to launch Spark Protocol was announced on MakerDAO Forum alongside the announcement to launch Phoenix Labs.

Spark Protocol

Spark Protocol is a fork of Aave v3 and will be a front-end app allowing users to interact with the DAI stablecoin by staking, borrowing, and lending. News about the Spark Protocol comes after months Aave, which has a total value locked (TVL) of about $4.6 billion, announced its own generated stablecoin, the GHO.

Since its inception in 2017, MakerDAO has sourced its revenue from the issuance of DAI and the development of a dedicated lending protocol represents a shift in the DeFi protocol’s focus.

MakerDAO has formed Phoenix Labs, a research and development company tasked with the development of the Spark Protocol.

etherDAI deployment

Besides Spark Protocol, MakerDAO has also announced the deployment of etherDAI, which will be a synthetic liquid staking derivative of Ether (ETH) pegged to ETH on a ratio of one-to-one.

Liquid staking will allow users to get extra yield besides the standard staking rewards for staking tokens on MakerDAO.

At press time, the price of Maker (MKR), the native token of Maker had risen by 1.13% over the past 24 hours showing some positive response to the news about the Spark Protocol.

The post MakerDAO to launch Spark lending platform to rival Aave appeared first on CoinJournal.