MakerDAO presents ‘Endgame Plan’: First Step the Spark Protocol 

• Spark Protocol will be launched in April 2023. 
• Stablecoin DAI would be at the core. 

The DeFi protocol MakerDAO is also working on its ‘Endgame’ plan, slowly dissolving MakerDAO and creating subDAOs. The Ethereum-based blockchain plans to launch Spark Lend (SL), a lending market focused on “liquid, decentralized, and high market cap assets.”

The team, formerly known as Crimson Cluster, had announced the launch of Phoenix Labs, a research and development firm working on building the Spark Protocol. And according to MakerDAO, devs would bring remarkable structural changes to both MakerDAO and Maker Protocol. 

The announcement reads as follows:

“That’s why we decided to create Phoenix Labs to support this new phase of growth and innovation by looking outwards and challenging our culture of building in-house because only together can we achieve greatness. We want to bring new decentralized products to Maker and start building for the future Creator subDAOs.”

Phoenix Labs is diligently working on vertically integrating the existing products into Maker and sharing the value creation with the developers. Stablecoin DAI is at the core of everything the lab is building. 

The ownership of every product built by Phoenix Labs would be with MakerDAO. With the establishment of “Creator subDAO,” Spark Protocol would transit into one of them. Furthermore, it would extend the MakerDAO’s capabilities in offering a “liquid market” for supplying and borrowing crypto assets at a fixed rate and supporting EtherDAI, which would be a decentralized stablecoin on the Ethereum blockchain. 

As per the MakerDAO governance forum’s announcement, Spark Protocol will evolve; this will add new features further integrating Maker’s products, along with their availability on the most innovative DeFi solution of the industry. Spark Lend would amalgamate Maker’s Direct Deposit Module (D3M), which is a key differentiator with the lending protocols at hand, and the Peg Stability Module (PSM). After the launch of Spark Lend, further exciting products and features will be delivered in 2023. 

The lineup includes Spark Fixed Rates, Resilient Oracles, maker teleport support, cross-chain support and bootstrapping EtherDAI. 

Spark Lend will also focus on liquid, scalable collateral types; it will not compete with the markets offering “tail assets.” All while SL would strive to be the chair of the most secure platform in the DeFi universe. The expected launches are ETH (E-mode enabled), WBTC, DAI, Savings DAI (collateral only), and Lido wstETH.

Depending on the governance vote, Spark Protocol is set to launch in April 2023. 

At the time of writing, MKR was trading at $713.96 with a drop of 7.60%, while its value against Bitcoin was corrected by 4.07% to 0.03267 BTC. Its market cap also suffered by 7.61% to $697 million, and its volume gained 1.42% to $46 million in the last 24 hours. It is ranked 66 and shares a market dominance of 0.07%. 

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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