202512161454 - spark
Main Topic
Spark is a DeFi liquidity and yield platform connected to Sky. The documentation frames Spark as a two-sided capital allocator: it sources stablecoin liquidity from Sky’s reserves and deploys capital across markets, then packages the resulting yield into user-facing products.
Spark’s documentation describes three product categories:
- Savings: savings vaults that let users earn yield on assets.
- SparkLend: a money market protocol with stablecoin liquidity provided directly from Sky.
- Spark Liquidity Layer: direct liquidity provision into DeFi markets.
Spark also runs governance around the SPK token. Voting power is described as the sum of SPK and staked SPK in a wallet, with an additional delegation mechanism for users who want to delegate voting power to approved delegates.
🌲 Branching Questions
What is Spark’s positioning relative to Sky?
Based on the official docs, Spark is positioned as a liquidity and yield infrastructure layer that borrows from Sky’s stablecoin reserves and deploys that capital across venues to earn risk-adjusted yield at scale. The user-facing products are then wrappers that make that yield easier to access and compose onchain.
The main takeaway is that Spark is not only a standalone app competing for deposits; it is meant to be an allocator and liquidity provider that other protocols can integrate with.
How does Spark governance work for a token holder?
The documentation describes:
- Voting power: SPK plus staked SPK in your wallet.
- Delegation: users can delegate voting power, but only to whitelisted delegates. Delegating via Snapshot to a non-whitelisted address does not count.
- Direct voting: if you do not delegate, you can vote with your own holdings via the Spark Snapshot space.
This suggests governance is split between an on-app governance UI (which enforces delegation constraints) and Snapshot-based voting for proposals.
What are the concrete steps to participate (delegate or vote)?
A practical flow from the docs:
- Visit the Spark governance page, connect a wallet, and delegate to a whitelisted delegate if you want someone else to vote on your behalf.
- If you want to vote directly, avoid delegating and vote using your holdings on the Spark Snapshot space.
The doc also notes that delegation can increase Spark points, which implies incentives are aligned with delegating participation through the official governance flow.