Spark Finance will fully deprecate its SparkLend protocol on Gnosis Chain by September 14, 2026. Following the execution of a Sky governance spell, all remaining outstanding loans on the network will become eligible for automated liquidation.
The protocol launched on Gnosis Chain in September 2023 as its first cross-chain expansion. The shutdown process began in early 2026 with a freeze on new deposits and borrows, alongside an increase in the reserve factor to 50% for all assets.
Affected assets include WXDAI, sDAI, WETH, wstETH, EURe, USDT, USDC.e, GNO, and USDC. Spark advises users to repay debts and withdraw collateral immediately to avoid potential liquidation penalties and losses from adverse market price movements.
The decision stems from persistently low usage and negligible revenue generated on Gnosis Chain. Spark stated that the operational overhead of maintaining the deployment yielded a negative return, failing to reach the necessary economic sustainability.
