SPK rose from $0.04 to $0.1, more than doubling in just a few days.
Written by: 1912212.eth, Foresight News
Original Title: On-Chain Liquidity DeFi New Star? Understand the Newly Launched Spark in Three Minutes
Earliest release date: June 17, 2025
On June 17, exchanges such as Binance, OKX, Bybit, Bitget, and Bithumb announced the launch of Spark (SPK) spot trading. Given the increasing tightness of market liquidity, it is rare for projects to quickly land on major exchanges. The next day, Coinbase also announced support for SPK trading. Following this, interest cooled down, and Bitget market data showed that SPK once dropped to around 0.03 USD. However, recently, with the market warming up, SPK has experienced a four-day rise, soaring from 0.04 USD to 0.1 USD, with an increase of more than 100% in just a few days. What exactly is Spark?
On-chain Liquidity Protocol
Spark is the liquidity and yield infrastructure layer for on-chain finance. Since the inception of DeFi, the crypto market has faced a perplexing structural problem: liquidity is highly fragmented and yields are unstable. Although DeFi has continuously evolved over the years, this issue remains unresolved. Spark acts as an on-chain asset allocator, borrowing from Sky’s stablecoin reserves valued at over $6.5 billion and deploying capital into DeFi, CeFi, and RWA. Spark provides stable liquidity to the market while achieving large-scale risk-adjusted returns.
The core key of Spark is its Liquidity Layer (Spark Liquidity Layer, abbreviated as SLL), which can automate the provision of liquidity for USDS, sUSDS, and USDC directly from Sky across various blockchain networks and DeFi protocols. This allows users to easily earn Sky savings rates using sUSDS on their preferred networks. Additionally, it enables Spark to automatically provide liquidity to the DeFi market to optimize returns.
SLL utilizes the Sky Allocation System to provide liquidity for USDS, sUSDS, and USDC across various networks and DeFi markets. It mints USDS and sUSDS through Sky Allocator Vaults and bridges them to other networks using SkyLink. The minted USDS is also exchanged for USDC through the Sky Peg Stability Module, and then bridged to other networks using the Circle cross-chain transfer protocol. The bridged USDS, sUSDS, and USDC can be deposited into liquidity pools, DeFi protocols, lending markets, or other yield strategies on the target chain.
Sky aims to keep 25% of the USDS reserves in cash reserves, primarily USDC, to ensure the liquidity and stability of USDS. SLL brings this liquidity from the Ethereum mainnet to the supported networks. Therefore, users can easily access ample liquidity, allowing them to convert USDC into sUSDS and vice versa. This enables the stability of USDS, the yield of sUSDS, and the liquidity of the Sky Peg Stability Module (Sky PSM) to benefit the entire DeFi ecosystem across all supported networks.
Currently, the protocols supported by SLL include SparkLend, Aave, Morpho, and Curve, and the supported chains include Ethereum mainnet, Base, Arbitrum, Optimism, and Unichain.
The core team of the Spark protocol has been deeply involved in the cryptocurrency field for many years. The core member is Lucas Manuel, who is the co-founder of Phoenix Labs. Phoenix Labs is a research and development company specializing in the development of smart contracts for DeFi protocols. Prior to this, he was the SC technical director of Maple Finance. Another key contributor is Nadia, who is also a co-founder of Phoenix Labs and was previously responsible for the growth of the Sky ecosystem.
The last important member is Kris Kaczor, who is also a co-founder of the data website l2beat.com. Kris is also an engineer at Phoenxi Labs, and in his Twitter bio, he describes himself as proficient in JavaScript and Klingon, a fictional alien language from the science fiction series “Star Trek.”
Token Economics
SPK is the native token of Spark, with a total of 10 billion coins. These 10 billion SPK tokens will be distributed over the initial 10 years.
The supply distribution of SPK is as follows:
- 65% allocated to Sky — for SPK mining within 10 years (for users);
- 23% allocated to the ecosystem;
- 12% allocated to contributors;
Sky mining (65%) A total of 6.5 billion tokens allocated to Sky will be distributed to users through genesis mining, and the distribution rate will gradually decrease over time.
- Year 1 - 2: 1.625 billion each year;
- Year 3 - 4: 812.5 million each year;
- Year 5 - 6: 406.25 million each year;
- Year 7 - 10: 203.13 million each year;
- Currently, the Sky mining feature has not been launched.
2.3 billion SPK tokens (23%) in the ecosystem are allocated to the Spark ecosystem to promote its growth. 17% of the tokens will be available at TGE, and the remaining will be unlocked after 1 year. A portion of this 23% allocation will also be distributed to the Spark community through the Ignition airdrop program. 1.2 billion SPK tokens are allocated to Spark’s core contributors to align their long-term incentives with the building and support of Spark. These tokens will unlock 25% after a 12-month lock-up period, and the remaining will be unlocked over the next 3 years.
The official announcement states that current SPK holders will be able to participate in the future governance of Spark and stake SPK to earn Spark Points rewards. In the future, staked SPK may be used to ensure the security of the protocol.
Investment Qualification
According to the official website, Spark has a total of 4 airdrop events, namely Pre-Farming, Ignition, Overdrive, and Layer3. The allocation situation for Pre-Farm users is as follows: Season 1 from August 20, 2023 to May 20, 2024, with a total allocation of 130,434,783 SPK. The second season funding pool (from May 20, 2024 to June 16, 2025):
SparkLend: 14,478,261 SPK per month
Aave: 7,239,130 SPK per month
This airdrop is part of the Ignition airdrop, totaling 300 million tokens. The tokens for the first phase are now available for claiming, with a deadline of July 22 at 22:00 Beijing time. Any tokens that are not claimed by the end of the Ignition claiming period will be distributed according to the Overdrive rules during the Overdrive airdrop event.
Stablecoin Holdings
Hold USDS, sUSDS, sUSDC, sDAI or SAI
On any snapshot date, the total holdings of any of the above tokens must reach at least $1,000.
Snapshot dates: April 15, 2023, April 15, 2024, April 15, 2025 - all at UTC time 23:59:59
Eligible chains: Mainnet, Base chain, Arbitrum chain
xDAI holdings
On any snapshot date, hold at least 1,000 xDAI
Snapshot dates: April 15, 2023, April 15, 2024, April 15, 2025 - all at UTC time 23:59:59
Eligible chain: Gnosis
DAI position
On any snapshot date, hold at least $10,000 worth of DAI.
Snapshot dates: April 15, 2023, April 15, 2024, April 15, 2025 - all at UTC time 23:59:59
Eligible chains: Mainnet, Base, Arbitrum, Optimism, Polygon
SparkLend Event
SparkLend deposit
Deposit more than 100 dollars to SparkLend in a single transaction.
Deadline: UTC time April 15, 2025 23:59:59 or earlier
Eligible chains: Mainnet, Gnosis
Lending Platform Activities
Aave lending
Accumulate a loan of at least 5,000 in USDS, sUSDS, USDT, USDC, USDe, sUSDe, DAI or sDAI.
Snapshot date: UTC time March 15, 2025 23:59:59
Eligible chains: Mainnet, Base, Arbitrum, Polygon, Optimism, Gnosis
Morpho Lending
Accumulate at least $5,000 in loans in USDS, sUSDS, USDT, USDC, USDe, sUSDe, DAI, or sDAI.
Snapshot date: UTC time March 15, 2025 23:59:59
Qualified chains: Mainnet, Base, Polygon
Fluid Lending
Accumulate a loan of at least 5,000 in USDS, sUSDS, USDT, USDC, USDe, sUSDe, DAI or sDAI.
Snapshot date: UTC time March 15, 2025 23:59:59
Eligible chains: Mainnet, Arbitrum, Base, Polygon
Other DeFi
Pendle PT, YT or LP holdings
On the snapshot date, among the top three markets ranked by Total Value Locked (TVL), those who held at least $5,000 of Pendle PT, YT, or LP.
Snapshot date: UTC time March 15, 2025 23:59:59
Eligible chain: Mainnet
Ethena Position
Hold at least 5,000 dollars of Ethena sUSDe or USDe
Snapshot date: UTC time March 15, 2025 23:59:59
Eligible chains: Mainnet
Curve 3pool LP
As a liquidity provider (LP) for Curve 3pool, provide at least 5,000.
Snapshot date: UTC time March 15, 2025 23:59:59
Eligible chain: Mainnet
Pendle vePENDLE
Hold at least 5,000 USD of Pendle vePENDLE
Snapshot date: UTC time March 15, 2025 23:59:59
Eligible chain: mainnet
With the backing of Sky (formerly MarkerDAO) and its reserve of assets worth billions of dollars, the future potential of Spark is worth noting given its excellent performance in capital efficiency and liquidity.
