Spark Savings

Spark Savings enables users to easily deposit assets into Spark Savings Vaults to earn an attractive and risk-adjusted savings rate. Different Savings Vaults offer different rates based on their underlying yield strategies. You can find an overview of all available vaults below.

Learn how to deposit and withdraw from Spark Savings here.

For larger withdrawals from Spark Savings USDC and Spark Savings USDT on Ethereum Mainnet, see the Savings Liquidity Intents guide.

Spark Savings Vaults Overview

Spark currently supports the following Savings Vaults:

Spark Savings Vaults (V2)

Spark Savings Vaults V2 (spUSDC, spUSDT, spETH) utilize the Spark Liquidity Layer (SLL) to deploy deposited assets into yield strategies. The SLL is designed to generate yield across Spark's entire balance sheet by strategically allocating assets across various protocols and yield strategies to optimize returns while maintaining liquidity and managing risk.

USD vaults are fully backed by USDS. Non-USD vaults are backed by Spark's balance sheet and insurance.

You can find an overview of the collateral composition for each vault on the Savings page in the Spark App.

Currently, Savings USDS, Spark USDT, and Spark ETH earn Spark Points. Other savings vaults do not currently earn Spark Points.

Conservative & Secure

• Minimizes exposure to riskier collateral (e.g., perpetual futures) to protect against market stress
• Backed by a mix of DeFi and RWAs to outperform traditional DeFi lending rates

Institutional-Grade Liquidity

• Backed by Sky's balance sheet to faciliate 24/7 withdrawals at any individual depositor's size
• Enables large-scale transactions ($100M+) without significant market impact
• Leverages the Spark Liquidity Layer's deep liquidity across multiple protocols

Multi-Asset Support

• USD stablecoins (USDC, USDT, PYUSD)
• ETH

Spark Savings Vaults V1 (Legacy)

The Savings USDC vault (sUSDC) is a legacy V1 vault that deposits USDC into the Sky Savings Rate. Users are encouraged to migrate to Spark Savings Vaults V2 for enhanced features. However, sUSDC will continue to be supported as a legacy vault.

Sky Savings Vaults

These vaults (sUSDS, sDAI) deposit directly into the Sky/Dai Savings Rate. They offer simple, reliable access to Sky's yield with rates set by Sky Governance. Savings DAI (sDAI) is a legacy vault, and users are encouraged to migrate to newer vaults.

Staked USDS

This is a higher-yield, higher-risk product offered by Sky. stUSDS lends USDS exclusively to borrowers using SKY tokens as collateral. While it may offer higher APY than other vaults, it carries increased risk including potential liquidity constraints and lack of automatic liquidations. Learn more about stUSDS risks and mechanics →

FAQ

What's the difference between Spark Savings Vaults V2, V1, and Sky Savings Vaults?

Spark Savings Vaults V2 (spUSDC, spUSDT, spETH, spPYUSD) are Spark-managed vaults that use the Spark Liquidity Layer to deploy assets across optimized yield strategies. They may offer higher yields by combining the Sky Savings Rate base with additional yield strategies.

Spark Savings Vaults V1 (sUSDC) - Legacy was an earlier version that deposits USDC into the Sky Savings Rate. Users are encouraged to migrate to V2 vaults for enhanced features.

Sky Savings Vaults (sUSDS, sDAI) deposit directly into the Sky Savings Rate. They offer simple, reliable access to Sky's yield with rates set by Sky Governance. Note that sDAI is a legacy vault.

Currently, Savings USDS (sUSDS), Spark USDT (spUSDT), and Spark ETH (spETH) earn Spark Points.

Do I need to migrate my funds to Spark Savings Vaults V2?

You can continue using your current vaults. Spark Savings Vaults V2 may offer potentially higher yields through the Spark Liquidity Layer, but migration is not required.

Where does Spark Savings Vaults V2 allocate my deposits?

Spark Savings Vaults V2 deploy your deposits through the Spark Liquidity Layer (SLL), which is designed to generate yield across Spark's entire balance sheet. The SLL strategically allocates assets across various protocols and yield strategies to optimize returns while maintaining liquidity and managing risk. You can see an overview of the collateral composition for each vault on the Savings page in the Spark App.

How are vault rates determined and how often do they change?

• Rates are managed by Spark Governance based on market dynamics and underlying yield strategies
• USD vaults (spUSDC, spUSDT, spPYUSD) are anchored to the Sky Savings Rate as a minimum, with potential for higher yields through additional DeFi strategies. These rates are updated periodically based on market conditions.
• ETH vault (spETH) rates may be adjusted more frequently to reflect current market dynamics due to the smaller vault size and more dynamic lending markets.

• Rates are set by Sky Governance based on Sky Protocol's revenue from crypto-collateralized loans, U.S. treasury bills, and liquidity provisioning
• Changes are made by Sky Governance and updated as needed

• Rates are set by Sky Governance based on Sky Protocol's revenue from crypto-collateralized loans, U.S. treasury bills, and liquidity provisioning
• Changes are made by Sky Governance and updated as needed

How does the Spark Liquidity Layer ensure liquidity?

The Spark Liquidity Layer is designed to always maintain sufficient liquidity for vault deposits and withdrawals. It does this by:

• Keeping 10% of vault assets as instant liquidity in each vault
• Utilizing the Sky PSM for efficient USDC/USDS swaps
• Dynamically managing asset allocations across integrated protocols
• Maintaining strategic liquidity reserves

This ensures users can always enter and exit vaults, even for large transactions.

Is there slippage on deposits and withdrawals?

When you deposit a token into its native vault, there is no slippage. For example:

• Depositing USDC into Spark USDC (spUSDC) or Savings USDC (sUSDC)
• Depositing USDT into Spark USDT (spUSDT)
• Depositing USDS into Savings USDS (sUSDS)
• Depositing ETH into Spark ETH (spETH)

Are vault tokens transferable?

Yes, all vault tokens are standard ERC-20 tokens that can be transferred, or integrated into other DeFi protocols. Your vault tokens represent your share of the vault and will continue accruing yield wherever they are held.

Can I withdraw at any time?

There are no lockup periods for any of the Savings Vaults. Spark Savings Vaults V2 keep an idle liquidity buffer in the vault for instant withdrawals. For larger withdrawals from Spark Savings USDC and Spark Savings USDT on Ethereum Mainnet that exceed the currently available idle liquidity, the app can submit a Savings Liquidity Intents request to the Spark Liquidity Layer, which is usually fulfilled within a few minutes. Learn more about Savings Liquidity Intents.