Spark Savings, a product within the Sky ecosystem formerly known as MakerDAO, has raised the annual percentage yield for its USDT vault to 3.5%. This adjustment represents an increase from the previous rate of 3.25%, reflecting an improvement of approximately 8% for depositors.
The vault currently holds a total value between $340 million and $361 million. The protocol, developed by Phoenix Labs, utilizes the ERC-4626 standard on Ethereum to facilitate capital allocation and instant withdrawals for users who receive spUSDT tokens.
Funds are deployed via the Spark Liquidity Layer into various lending markets, such as SparkLend, which offers benchmark yields of around 2.75%. The protocol maintains liquidity buffers ranging from 60% to 100% of total deposits to manage operations.
Yield adjustments are determined through governance decisions involving the SPK token, based on borrow demand and profitability metrics. Historically, the vault's APY reached a peak of 4.32% in March 2026 before dropping to 3.25% prior to the current update.
