TechFlow News — Phoenix Labs, a newly formed development company, has submitted a new governance proposal to the MakerDAO community proposing the creation of a new liquidity market called Spark Protocol, designed for borrowing and lending crypto assets with a focus on DAI.
The first product will be Spark Lend, which will allow users to borrow DAI at a fixed savings rate currently set at 1%. According to the proposal, Spark Lend will accept highly liquid decentralized assets as collateral, such as ETH, DAI, wstETH, and wBTC.
Future features will include fixed-term yield products and integration of Maker’s own synthetic liquid staking derivative (LSD) EtherDAI. Per the proposal, Spark aims to launch by April this year, opening a DAI lending vault on Maker with a debt ceiling of $200 million.
Spark will utilize Aave v3's smart contract system. In return, the development team Phoenix Labs intends to send 10% of the protocol’s profits earned on the Spark Protocol’s DAI market to the Aave DAO over the next two years. Deployment of Spark Protocol is subject to a vote by the Maker community.Source
