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What Are Spark Farmers Doing After DSR Decreased?
Niklas Polk
Key Takeaways
7 min read
  • Out of 1'623 addresses which deposited into the sDAI contract via Spark and participated in the 8% DSR since 04. August, about 23% already withdrew most, if not all of their deposits after the DSR decreased.
  • Most of those redeemers did not keep their redeemed DAI, but changed to other assets and stablecoins.
  • Those who remained in sDAI, used protocols like Spark, Aave and Pendle to further increase their yield.
  • Looking at other protocols these savvy farmers placed their funds in, DeFi bluechips like Aave, Maker and Compound, as well as Morpho, Aerodome and Lybra are popular.


Spark is a decentralised non-custodial liquidity market protocol where users can participate as suppliers or borrowers. Suppliers provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an over-collateralized (normal loan) or under-collateralized (flash-loan) fashion.

Spark Protocol is a fork of the Aave v3 lending protocol that launched with MakerDAO’s blessing in May. The DAI-focused money market also creates new use cases and yield opportunities for DAI holders, allowing depositors to access the DSR and take loans against DAI collateral. Spark is incubated by MakerDAO and will become its own subdao in the future, with a separate and unlaunched token that you can...