A new DeFi multi-project integration between MakerDAO, the longest-standing DeFi lending protocol and creator of DAI, Spark, a Maker SubDAO-built DeFi infrastructure, Morpho, a decentralized lending platform, and Ethena, a synthetic dollar protocol on Ethereum, has been launched today. Spark will now deploy new DAI markets with Ethena’s sUSDe and USDe, on Morpho’s lending protocol, Morpho Blue. In addition, a DAI vault has been built on Metamorpho, a protocol for creating lending vaults on Morpho Blue, to allocate DAI liquidity from MakerDAO to these markets.
As DeFi lending rebounds closer to the levels last seen at its peak in 2022, scalable frameworks are required to meet current and future demand. This integration marks a pivotal moment for DeFi, demonstrating collaborative efforts to create a more secure, efficient, and scalable financial system.
Key to enabling this collaboration is the MakerDAO Endgame Plan – a fundamental transformation of the DAO to improve growth, resilience, and accessibility – which accelerates this year. As a newly formed SubDAO within the Maker ecosystem, Spark benefits from unparalleled liquidity provided by Maker. Maker will facilitate a direct link between DAI liquidity to Spark’s new DAI Metamorpho vault, ensuring an efficient flow worth hundreds of millions of DAI into sUSDe/DAI and USDe/DAI markets. The DAI markets created on Morpho Blue will enable users to obtain advantageous DAI borrowing rates at a considerably larger scale. Meanwhile, Ethena provides a synthetic dollar to power this integration with no ties to traditional banking infrastructure. This integration further enables DeFi users to partake in a new paradigm of DeFi interest rates.
Sam MacPherson, CEO and Co-founder at Phoenix Labs, the R&D company contributing to Spark, said, “This strategic collaboration unlocks novel and innovative opportunities for the entire DeFi lending ecosystem that will be looked back upon as a truly significant moment. MakerDAO’s groundbreaking SubDAO dynamic has enabled this development as well as the overall rapid growth of Spark. It is a testament to the efficiency of DeFi when a new product launches with a killer value proposition and succeeds in the manner which Spark has done.”
Paul Frambot, CEO and Co-founder at Morpho Labs, said “It’s exciting to see Morpho’s trustless and efficient infrastructure approach to lending being embraced by DeFi’s largest and fastest-growing protocols. By building on top of Morpho Blue’s infrastructure, Spark will open a wider variety of use cases for DAI while preserving optimal security for Maker’s ecosystem. Users will be able to borrow DAI with a much broader diversity of collateral, greatly expanding the scope of lending and borrowing opportunities for users.”
Guy Young, Founder and CEO at Ethena Labs, said, “Ethena is excited to help provide a new base asset upon which other DeFi applications can build upon and innovate. This integration is the perfect example of the power of composability within DeFi, and brings us one step closer to realizing our vision of providing a crypto-native internet bond to DeFi.”
About MakerDAO
MakerDAO is the decentralized autonomous organization (DAO) that powers the longest-standing DeFi lending protocol and enables the creation of DAI, the original decentralized stablecoin.
Governance of MakerDAO is decentralized, with proposals tabled and voted on by the Maker Community, comprising people from all over the world. Utilizing an embedded governance mechanism, the decentralized and self-sustaining Maker Community holds sole authority to enact changes to the Maker Protocol through on-chain voting using the native governance token, MKR.
Governance and tokenomics of the Maker ecosystem are currently being overhauled through the Endgame Plan. Endgame will introduce SubDAOs to the ecosystem, each with a unique governance token, governance process, and workforce.
For more information about MakerDAO, visit makerdao.com, its community portal, official forum, and Twitter.
About SparkDAO
SparkDAO is a Maker Allocator SubDAO. A decentralized, autonomous organization that owns and manages Spark. Spark is on a mission to empower the DAI ecosystem by building and managing DeFi infrastructure.
SparkDAO is most known for building SparkLend, a decentralized non-custodial liquidity market protocol with $3B in TVL.
About Ethena Labs
Ethena Labs is a research, development, and engineering firm building infrastructure supporting the first ever scalable synthetic dollar alongside a value-accruing “Internet bond”.
The firm is backed by Dragonfly Capital, Arthur Hayes’ family office Maelstrom, every major crypto futures exchange including incubation from Binance Labs, Bybit, OKX, Deribit, Gemini and other leading investment firms including Brevan Howard Digital, Franklin Templeton and Avon Ventures, a venture fund affiliated with FMR LLC, the parent company of Fidelity Investments.
The Ethena Labs team brings deep experience from both traditional finance and crypto, including from firms such as Cerberus, Wintermute, Flow Traders, Paradigm, Deribit, Lido, Aave, and Goldman Sachs.
About Morpho
Morpho is a trustless DeFi protocol enabling the lending and borrowing of digital assets. With over $2 Billion in deposited assets, Morpho is the third-largest lending protocol on Ethereum. The latest version, Morpho Blue, is a secure, efficient, and flexible primitive on top of which any lending use cases can be built.