PANews|Apr 20, 2026 06:59
[Spark Strategy Lead: Previous tightening of collateral scope led to significant business loss but ensured liquidity safety]
Spark Strategy Lead monetsupply.eth posted on the X platform, stating that Spark discontinued rsETH (along with other low-utilization assets) in January and has continued to tighten its collateral and feature set. Spark set a relatively high maximum borrowing rate for the SparkLend ETH market, while Aave lowered its maximum ETH borrowing rate to below 10%, causing users to shift to Aave for borrowing. This resulted in Spark losing a significant amount of business and revenue over the past year. However, under current circumstances, SparkLend still maintains sufficient ETH withdrawal liquidity, while Aave's WETH reserves on the mainnet, Arbitrum, Plasma, Mantle, and Base remain frozen.
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