Borrowing, built for scale

Everything you
need to know

What is Spark Borrow?

Spark Borrow is Spark's borrowing infrastructure, bringing together SparkLend and Spark Isolated Markets within a single borrowing experience. These products provide access to different market structures designed around varying collateral, liquidity, and risk requirements.

How does SparkLend support borrowing liquidity at scale?

SparkLend is Spark's cross-collateral lending and borrowing market. Through coordinated liquidity management and access to liquidity connected to the broader Spark and Sky ecosystem, SparkLend is designed to support large borrowing positions while maintaining efficient market conditions across supported assets.

What are Spark Isolated Markets?

Spark Isolated Markets are isolated borrowing markets deployed across additional chains with independent risk structures and Spark-curated market standards. Each market operates separately, allowing collateral requirements, risk parameters, and borrowing conditions to be defined at the market level rather than shared across all borrowing markets.

Why do isolated borrowing markets matter?

Not all borrowing products should share the same collateral, liquidity, and risk framework. Spark Isolated Markets allow collateral requirements, borrowing conditions, and risk parameters to be defined independently at the market level. This reduces dependence on shared market conditions, allowing liquidity, borrowing rates, and collateral frameworks to operate independently from unrelated borrowing markets.

Why might borrowing USDS reduce borrowing costs?

Spark supports multiple borrowing assets and liquidity sources across its borrowing infrastructure. In some situations, borrowing USDS and converting to USDC through Sky's Peg Stability Module (PSM) can provide access to deeper liquidity or lower borrowing costs than borrowing USDC directly.

Because USDS, USDC, and DAI can be exchanged through the PSM at a 1:1 rate, borrowers may choose the most cost-efficient borrowing route based on current market conditions and borrowing rates.

The best option depends on the asset being borrowed, market conditions, and available liquidity at the time.

How are collateral and borrowing markets approved?

Collateral assets and borrowing markets undergo review through Spark governance processes and the Spark Risk Council. Reviews consider factors such as liquidity, security, market structure, operational risk, and borrower demand before assets or markets are approved for deployment within Spark Borrow.

How does Spark support integrated borrowing products?

Spark provides borrowing infrastructure that can be integrated into wallets, custodians, exchanges, fintech applications, and other financial products. Through curated market deployment, defined collateral standards, liquidity support, and ongoing market management, Spark enables partners to offer borrowing products without building and operating lending markets themselves.