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sparklend

Sparklend

WETHLending

WETH into SparkLend, lent against blue-chip ETH/BTC only (LRT legs frozen out); dinged 1pt for 81% util.

EthereumEthereum1.55% APY$211.0M TVLView on Sparklend↗

Risk signals

A+95Risk profile breakdown

Deposit WETH, lent against blue-chip ETH/BTC collateral only (wstETH/WBTC/weETH/cbBTC/LBTC) on SparkLend's Aave-fork machinery under Sky DAO 48h-timelock governance — the exotic LRT legs are frozen at LTV-0 and excluded; clean S1 FLAT, dinged 1 point for 81% utilization.

Risk profile

  • ProtocolSparklendA⁺ (95)
  • StrategySingle-asset lendingA⁺ (96)
  • Collateralno collateral flagA (90)
  • Liquidity18.8% withdrawable at snapshotB⁻ (69)
  • Governanceno flags foundA (92)

Yeelds Grade

A+

95/100

higher = safer

Graded 2026-06-18 · methodology v1.1 · a dated opinion, not a guarantee · how it's graded

Exposure

StrategyLending
Typesingle
Categoryblue chip
Yield sourceLending interest
Underlying tokensWETH

Incentive Campaigns

Campaign details available after Merkl/Metrom integration.

Opportunity review

WETH into SparkLend, lent against blue-chip ETH/BTC only (LRT legs frozen out); dinged 1pt for 81% util.

Yield composition

1.55%
Lending interest: 1.55%Incentive rewards: —
Organic ratio: 100%

Rewards simulation

on a $1,000 deposit

$0.04
per day
$1.27
per month
$15.48
per year

Estimates based on current APY. Actual returns may vary.

Deposit on Sparklend→
Concentration
top-5 = 54.90%
A⁻ (85)
  • Exposureblue-chip ETH-LST + BTC drawable set
    • Profile shown. The grade is computed with hard caps, not an average of these axes.

    Risks

    • Utilization at 81.23% (just over the 80% line) means a large simultaneous withdrawal + new-borrow surge could thin the ~18.8% withdrawable buffer and lift exit slippage/wait, though IRM repricing and looper repayment normally free liquidity (Low).

    • Pooled bad-debt socialization

      a liquidation shortfall on any drawable collateral (wstETH/WBTC/weETH/cbBTC/LBTC) is shared across WETH suppliers — currently unbacked=0 with conservative 74-83% LTVs and pristine blue-chip collateral, so the surface is small (Low).

    • Governance is Sky DAO via DSChief token-holder voting behind a 48h MCD_PAUSE timelock and SparkProxy/PauseProxy ACL

      mature and timelocked, but a malicious-or-coerced governance majority could re-point oracles/params after the 48h delay (Low).

    What makes the score

    • AnchorS1 single-asset lending × P1 institutional96
    • Adjustmentsutilization withdrawal liquidity −1−1
    • Score / 100Composite grade A+95
    • −1 · utilization_withdrawal_liquidity

    Contract & governance

    Contract age
    —
    Audited
    No
    Verified
    —
    Depositor concentrationShare of the vault held by the top 5 wallets. Lower = more distributed. High concentration means one large depositor exiting can drain liquidity.
    —
    Depeg risk
    —
    Admin key
    —