[Ethereum] SparkLend - Increase tBTC Supply and Borrow Caps - October 20, 2025

Spark's Operational Facilitator has placed a proposal into the voting system on behalf of nested contributor Phoenix Labs.

Review

The Spark community can hereby express support or opposition to the following changes, as described by the author of the proposal:

tBTC has seen a significant uptick in usage over the past month, with deposits rising from a low of less than 30 tBTC to over 270 tBTC currently. This has already reached over ½ of the current supply cap max value of 500 tBTC, and we propose increasing this to 1,000 tBTC and increasing the borrow cap max to 900 tBTC to allow for continued growth, while being mindful of fundamental risk and liquidity constraints. Note that we do not plan to increase the supply or borrow cap gap parameters, as we find setting these conservatively is valuable to mitigate tail risks.

Parameter summary:

• SparkLend tBTC
  • Supply cap max: 1,000
  • Borrow cap max: 900

The proposed Spark Artifact changes can be found in the following pull request: https://github.com/sky-ecosystem/next-gen-atlas/pull/81

Outcomes

• If "For" receives the most votes, the proposal will be approved. The associated pull request will be merged into Spark's artifact. When required, the listed changes will proceed to implementation by the relevant actors.
• If "Against" receives the most votes, the proposal will be rejected. No changes will be implemented.