Risk Assessment
Spark Savings vaults are subject to independent risk assessments by Credora, a DeFi risk analytics provider.
Credora assigns a model-driven credit assessment to each Savings vault based on the Probability of Significant Loss (PSL), which estimates the likelihood of a material loss of principal under stressed conditions.
Ratings incorporate:
- Collateral composition
- Liquidity conditions
- Smart contract maturity
- Governance structure
| Vault | Underlying Exposure | PSL | Rating |
|---|---|---|---|
| ETH | SparkLend ETH lending market | 0.25% | A |
| PYUSD | USDS collateral backing | 0.62% | A |
| USDC | USDS collateral backing | 0.76% | A- |
| USDT | USDS collateral backing | 0.76% | A- |
| USDS | USDS collateral backing | 0.79% | A- |
| stUSDS | SKY/USDS isolated lending market | 1.03% | B+ |
Ratings are model-driven and update when material changes occur in underlying exposures.
Scope and Limitations
- Ratings measure incremental credit risk of the vault structure.
- Ratings exclude market price volatility of the deposited asset unless explicitly stated.
- Ratings are based on publicly observable on-chain data, third-party analytics, and Credora’s proprietary risk models.
- Ratings do not constitute investment advice.
All ratings, probabilities, and qualitative assessments displayed here are provided by Credora and do not represent Spark’s own analysis.
Data Sources and Methodology
Credora ingests position-level collateral data and reconciles it against on-chain state across:
- Lending markets
- Liquidity pools
- Reserve assets