Spark Protocol is re-thinking stablecoin stability mechanisms
The most fundamental characteristic of a successful stable coin is a system ensuring fiat-pegged pricing so the token is, in fact, stable . Judging from past failures, it’s a task easier said than done. As previously reported by Blockworks, MakerDAO is switching its stability mechanism to the Spark Protocol, “which will give users access to a wholesale DAI credit line directly injected from Maker.” The protocol will eventually become a “sub-DAO” in Maker’s Endgame update. Sam MacPherson, the co-founder and CEO of Phoenix Labs, spoke to Blockworks on the 0xResearch podcast (Spotify / Apple) about an upcoming change to Maker — known for its decentralized stablecoin DAI — set to improve DeFi liquidity and stablecoin resilience. Phoenix Labs is a development team that’s contributing to building the Spark protocol, a lending mechanism providing liquidity for participants in the Maker ecosystem. As part of the Endgame makeover, Maker will switch to depositing on AMMs (automated mar...