Summary
TLDR: Maker’s SubDAO Spark has deployed $100 million in new DAI liquidity with Morpho Blue’s lending protocol, allowing users to borrow Ethena’s stablecoins. This collaboration unlocks new opportunities for the DeFi lending ecosystem and is driven by MakerDAO’s endgame plan. SparkLend initially used Aave v3’s codebase but expanded with Morpho’s programmability. Morpho’s CEO emphasized the trustless and efficient infrastructure approach to lending. Maker’s decision to work with Morpho follows Gauntlet terminating its contract with Aave and Aave excluding Morpho users from its alignment reward program.
Key Points
1. Spark, a Maker SubDAO-built DeFi infrastructure, has deployed $100 million in new DAI liquidity with Morpho Blue, Morpho’s lending protocol. This move allows users to borrow Ethena’s stablecoins, USDe and sUSDe, at highly efficient leveraged positions backed by MakerDAO.
2. Ethena’s USDe is backed 1:1 to the US dollar and collateralized with institutional custodians, including Fireblocks, Copper, Ceffu and Cobo. sUSDe is a value accruing “internet bond,” or a staked version of the USDe asset.
3. In addition to creating new DAI markets, a DAI vault has been built on MetaMorpho, a protocol that enables vaults to be created on Morpho Blue to ensure that DAI liquidity is allocated to these markets. Performance fees on the vault will be initially set to zero, and Maker’s Direct Deposit Module (DDM) will receive all fees accrued.