SparkLend, the Sky ecosystem’s lending protocol, has surpassed $800 million in USDS borrowing, an all-time high following a 64% increase over 30 days. The protocol reports approximately $6.8 billion in supplied liquidity and around $2.13 billion in active borrowings, while TVL estimates range from $4.65 billion to $7.4 billion depending on the metric. Earlier figures placed total market size at $7.39 billion, TVL at about $4.96 billion and active loans at roughly $2.436 billion, reflecting differing measurements or reporting periods. Wrapped staked ETH, or wstETH, accounts for more than $3 billion of supplied assets. SparkLend is based on Aave V3’s architecture but uses a governance-determined USDS borrowing rate rather than Aave’s utilization-driven pricing. Sky’s Peg Stability Module supports 1:1 swaps among USDS, USDC and DAI. SparkLend will deprecate its Gnosis Chain deployment on Sept. 14, 2026, consolidating resources on Ethereum; outstanding Gnosis loans were previously reported as becoming eligible for liquidation after the cutoff. The SPK governance token launched in June 2025. Concentration in wstETH and reliance on Sky’s reserves, liquidity and governance create key risks for the protocol.