Analyst Insight

By assessing the on-chain metrics for USDC on Spark, our risk model classifies this as a standard market performer, aligning with the broader Ethereum lending average.

The current APY of 3.51% is supported by a Total Value Locked (TVL) of $57,601,493. Data indicates this pool is currently outperforming the broader USDC market by 20.9%. This alpha may be driven by high borrowing demand.

Risk Context: With a Safety Score of 80/100, this liquidity pool is positioned for active yield farmers monitoring daily volatility.

Yield Mechanics: How It Works

Understanding the underlying system is essential for assessing sustainability. The 3.51% APY displayed for USDC is primarily derived from interest paid by borrowers on the Spark protocol.

Supply & Demand

When you deposit USDC, you become a liquidity provider. Borrowers pledge collateral (like ETH or BTC) to take out loans. The interest rate fluctuates based on the Utilisation Rate (currently 82.98%). Since utilisation is high, interest rates have increased to encourage repayments and attract new deposits.

Risk Strategy & Management

While Spark is a reputable protocol, no yield is without risk. Based on the current Safety Score of 80/100, the following approac may suit (DYOR):

• Smart Contract Risk: Ensure you are comfortable with the audit history of Spark.
• Liquidity Risk: With a TVL of $57,601,493, slippage is minimal for standard trade sizes.
• Strategy: More suitable for a 'Set and Forget' strategy.

Frequently Asked Questions

Advanced Tools

Enhance your stablecoin yield data analysis with our suite of tools:

• Profit Calculator: Forecast compound interest earnings.
• Safety Audit: Deep dive into the risk factors.
• Liquidity Depth: Analyse market dominance and slippage.