DeFi lender Spark deploys $100 million into Superstate fund to diversify revenue as US Treasury yields dip
DeFi lender Spark allocated $100 million of stablecoin reserves into Superstate's USCC fund to diversify yield sources away from dipping US Treasury products.Summary
DeFi lending protocol Spark, part of the Sky ecosystem, is deploying $100 million of its stablecoin reserves into Superstate's Crypto Carry Fund (USCC). This move is described as the first large-scale attempt by an onchain protocol to diversify away from traditional government securities, which historically formed a substantial part of Spark's yield generation via tokenized Treasury products.
The decision coincides with US Treasury yields hitting six-month lows. Sam MacPherson, CEO of Phoenix Labs (Spark's developer), stated the Superstate fund allows Spark to maintain safety and compliance while diversifying yield. Superstate CEO Robert Leshner noted the investment helps Spark maintain exposure to yield opportunities uncorrelated with Federal Reserve rate policy.
The USCC fund generates yield through a spot and futures crypto basis trade, currently offering a 30-day yield of 8.35%. This diversification strategy contrasts with many stablecoin issuers who hold reserves in government bonds, though Spark has also recently explored yield from Ethena's USDe tokens.
(Source：The Block)