SparkLend, the lending division of the Sky ecosystem, reported that USDS borrowing has exceeded $800 million, marking a new record. This figure represents a 64% increase in borrowing activity over the last 30 days.
The protocol currently manages approximately $6.8 billion in total provided liquidity, with active borrowings across the platform totaling about $2.13 billion. The Total Value Locked in the system is estimated between $4.65 billion and $7.4 billion.
The majority of collateral consists of Ethereum-native assets, with wstETH accounting for over $3 billion in supplied assets. Unlike Aave V3, on which it is based, SparkLend utilizes a governance-determined borrowing rate for USDS.
On September 14, 2026, the protocol officially deprecated its Gnosis Chain deployment to consolidate all operations on the Ethereum network. The platform also relies on the Sky Peg Stability Module for 1:1 swaps between USDS, USDC, and DAI.
