MakerDAO is supporting the DAI ecosystem with a new DeFi application. Through the Spark Protocol, users will be able to access competitive interest rates.

The MakerDAO announced a new lending platform on May 8. Also called "Spark Protocol," it is intended to function as a "credit marketplace." Developed specifically for DAI stablecoin, the platform should give users access to competitive interest rates on ETH, sETH, DAI and sDAI.

Spark Protocol is also associated with the D3 module. This system allows interaction between the Maker ecosystem and third-party credit pools. "This direct line of credit in DAI automatically injects and balances fresh DAI liquidity into Spark Lend. This gives users access to the best interest rates in the market," Maker announced. "Users can therefore borrow Stablecoins through Spark Lend at an initial annual interest rate of 1.11 percent," Maker adds.

Announcing the Spark Protocol launch ⚡️

Starting May 9, 2023, Spark Protocol will be available to all DeFi users.

An end-user, DAI-centered DeFi product deployed on Ethereum with supply and borrow features for ETH, stETH, DAI, and sDAI. pic.twitter.com/oLa8oeBmL1
— Maker (@MakerDAO) May 8, 2023

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Mid-March MakerDAO decided to invest more in U.S. bonds to spread DAI's collateral. For that reason, the DAO will buy bonds every two weeks for a period of six months, each worth $62.5 million.

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