How Polygon zkEVM Plans to Fire Up DeFi Activity with Spark

Polygon Labs is planning to deploy Spark Protocol on Polygon zkEVM.

Polygon zkEVM robot looking how to integrate Spark Protocol.
Created by Kornelija Poderskytė from DailyCoin
  • Polygon Labs is planning to deploy Spark Protocol on Polygon zkEVM.
  • The integration promises to onboard new users and incentivize DeFi activity on the network.
  • The move follows a recent Clearpool integration.

Since it launched Polygon zkEVM in March, Polygon Labs has focused on incentivizing DeFi activity on the network by integrating several popular lending protocols. Amid the team’s continued efforts, these integrations show no signs of slowing.

After integrating protocols like Aave and Clearpool, the Polygon Labs team has now revealed plans to deploy yet another lending protocol on the zk-rollup with the potential to onboard new users and incentivize DeFi activity.

Polygon zkEVM Users to Access Best DAI Rates

In a tweet on Tuesday, August 1, MakerDAO revealed that the Polygon Labs team had submitted a proposal to deploy the Spark Protocol on Polygon zkEVM.

If successful, the integration will allow Polygon zkEVM users to access the best borrowing rates for DAI, the largest decentralized stablecoin, through the MakerDAO-owned lending protocol. Unlike other protocols that have to pay liquidity providers, Spark Protocol’s direct line to Maker allows it to offer borrowers credit at the DAI Savings Rate.

The move offers greater incentives for traders by offering them cheaper rates to borrow against their holdings to engage in multiple DeFi opportunities without losing their original positions. At the same time, Polygon Labs will be betting on onboarding avid Spark Protocol users to the zk-rollup, which promises to offer greater security and lower costs.

Per the proposal, a community developer has already started work in preparation for the protocol deployment on Polygon zkEVM in hopes that it would be approved. The team has also made arrangements for a code audit with an unspecified “top tier” firm.

On the Flipside

  • The move is still pending approval from MakerDAO.
  • The Spark Protocol faces competition from Aave, which now boasts the GHO stablecoin.

Why This Matters

Polygon’s zkEVM has witnessed significant growth in recent months. The integration with the Maker-owned Spark Protocol will likely fuel this growth by onboarding new users and incentivizing more DeFi activity with lower rates.

Learn about Polygon zkEVM’s recent milestones:

Polygon zkEVM on Track for Polygon 2.0 with Major Milestones

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.