SparkLend, the lending arm of the Sky ecosystem, has seen its USDS borrowing surpass $800 million, setting a new all-time high after a 64% surge in just 30 days. The protocol’s total provided liquidity stands at approximately $6.8 billion, with active borrowings reaching around $2.13 billion. Wrapped staked ETH (wstETH) dominates the collateral side, accounting for over $3 billion in supplied assets. The protocol recently announced the deprecation of its Gnosis Chain deployment as of September 14, 2026, consolidating all its resources entirely on Ethereum. Key risks include the concentration of collateral in a single asset type, making SparkLend disproportionately vulnerable to any disruption in Ethereum staking.
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