![](\"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=840\/https:\/\/s3.cointelegraph.com\/uploads\/2023-05\/f6e6f929-0839-44b5-98ad-3312aad10c9a.jpg\")
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MakerDAO, a decentralized autonomous organization that operates on the Ethereum blockchain and issues stablecoin DAI, has announced<\/a>\u00a0that it has launched the Spark Protocol, a lending solution for DAI users.\u00a0<\/p>\n Announcing the Spark Protocol launch \u26a1\ufe0f<\/p>\n Starting May 9, 2023, Spark Protocol will be available to all DeFi users.<\/p>\n An end-user, DAI-centered DeFi product deployed on Ethereum with supply and borrow features for ETH, stETH, DAI, and sDAI. pic.twitter.com\/oLa8oeBmL1<\/a><\/p>\n \u2014 Maker (@MakerDAO) May 8, 2023<\/a><\/p><\/blockquote>\n According to the Twitter announcement, the first version of the Spark Protocol will act as a \u201clending marketplace,\u201d providing users with supply and borrowing features for cryptocurrencies such as Ether (ETH<\/a>), staked Ether (stETH), DAI (DAI<\/a>), and staked DAI (sDAI). The platform is specifically designed for DAI and aims to provide users with access to competitive interest rates.<\/p>\n The Spark Protocol is also linked to Maker\u2019s D3M (Direct Deposit Dai Module), a system that enables interaction between the Maker ecosystem and third-party lending pools. The link between Spark Protocol and Maker\u2019s D3M seeks to enable users to borrow DAI at more competitive rates, with an initial annual rate of just 1.11%.\u00a0<\/p>\n Regarding the connection between Spark Protocol and Maker\u2019s D3M, the announcement noted: \u201cThis direct wholesale credit line in DAI injects and automatically balances fresh DAI liquidity into Spark Lend and enables its users to access the best rates in the market.\u201d\u00a0<\/p>\n Ultimately, the Spark Protocol lending solution promises to enhance MakerDAO\u2019s DAI lending capabilities, increase liquidity, offer users improved rates, offer a yield-bearing version of DAI and provide more liquidity options.\u00a0<\/p>\n Related:\u00a0<\/em><\/strong>MakerDAO votes to keep USDC as primary collateral, rejects \u2018diversification\u2019 plan<\/strong><\/em><\/a><\/p>\n MakerDAO recently proposed a new \u201cconstitution\u201d<\/a>\u00a0designed to establish and formalize its governance processes, as well as safeguard against potential threats from malicious actors who may attempt to take over the protocol.\u00a0<\/p>\n To ensure the security and stability of the Maker Protocol and protect user funds from potential failures or losses due to human and institutional decisions, MakerDAO\u2019s\u00a0new constitution utilizes \u201calignment engineering\u201d to solidify the core commitments of the Maker community.<\/p>\n Magazine: <\/em><\/strong>Unstablecoins: Depegging, bank runs and other risks loom<\/em><\/strong><\/a><\/p>\n <\/div>\n\n