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Feature Overview

This page summarises the core SparkLend features that determine how users supply, borrow, and manage positions on the protocol. For step-by-step workflows, follow the links into the relevant guides.

Lending and Borrowing

On SparkLend, users supply assets to liquidity markets where they can be borrowed by other users. Suppliers earn interest on supplied assets, and can use those assets as collateral to borrow other assets. Borrowers pay interest to lenders based on the supply and demand of the borrowed asset.

For step-by-step workflows, see:

Efficiency Mode (E-Mode)

E-Mode allows borrowers to extract higher borrowing power from their collateral when supplied and borrowed assets are correlated in price — typically derivatives of the same underlying asset (e.g. ETH-correlated assets, or USD-pegged stablecoins).

See E-Mode for how to enter and exit E-Mode.

Isolation Mode

New assets can be listed as isolated. Borrowers supplying an isolated asset as collateral cannot use other assets as collateral at the same time (other supplied assets can still earn yield). Positions in isolation mode can only borrow up to a per-asset debt ceiling.

See Isolation Mode for the user flow.

Siloed Borrowing

Siloed borrowing allows assets with potentially manipulatable oracles to be listed on SparkLend as a single borrow asset: if a user borrows a siloed asset, they cannot borrow any other asset at the same time. This contains the risk associated with such assets so it cannot impact the overall solvency of the protocol.