[Ethereum, Avalanche, Arbitrum, OP Mainnet] Spark Savings - Increasing Savings Capacity - January 5, 2026

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:

[Ethereum] Spark Savings - Increase spUSDC Deposit Cap

While the vault is still a ways away from hitting the 500 million USDC deposit cap, we propose increasing the Ethereum mainnet spUSDC cap to 1 billion to ensure the vault is positioned for further growth. Vault deposits are backed by sUSDS, which can be minted and redeemed in essentially unlimited size without fees, so there is no market or inventory management risk to Spark from a higher deposit cap.

Parameter summary:

• spUSDC
  • Deposit cap: 1 billion USDC

[Ethereum] Spark Savings - Increase spETH Deposit Cap

The Spark Savings ETH vault tracks yield generated by underlying investments, so there is no risk of asset vs liability yield mismatch causing losses for Spark as capacity grows. The vault is still a ways away from hitting the current 100,000 ETH supply cap but we propose to raise the cap to 250,000 ETH to ensure it does not get hit as the vault begins to adopt higher yielding and potentially more attractive asset allocation strategies.

Parameter summary:

• spETH
  • Deposit cap: 250,000 ETH

[Avalanche] Spark Savings - Increase spUSDC Deposit Cap

The Avalanche vault is incentivized and has seen deposits nearing the initial 250 million cap. We propose to raise the cap to 500 million to allow for continued scaling. Similar to the USDC vault on mainnet, deposits are fully backed by sUSDS so there is no risk of creating yield or liquidity mismatches from increasing the maximum deposit cap.

Parameter summary:

• spUSDC
  • Deposit cap: 500 million USDC

[Arbitrum] Spark Liquidity Layer - Mint sUSDS to Arbitrum PSM3

Because the USDS cross chain bridging system has not been fully implemented yet, supplying sUSDS inventory to the L2 PSM3 mechanisms requires manual action via spells. We propose to mint and supply 250 million USDS worth of sUSDS into the PSM3 to enable additional usage of sUSDS and Spark Savings v1 sUSDC (which relies on sUSDS as backing) on Arbitrum. Demand is expected to be quite strong in light of Arbitrum’s current focus on yield bearing stablecoins and RWAs, and related incentives programs.

Parameter summary:

• Mint 250 million USDS worth of sUSDS to the PSM3 on Arbitrum

[OP Mainnet] Spark Liquidity Layer - Mint sUSDS to OP Mainnet PSM3

Similar to above, we propose to premint 100 million USDS worth of sUSDS to the PSM3 on OP Mainnet to allow for additional usage of sUSDS and sUSDC.

Parameter summary:

• Mint 100 million USDS worth of sUSDS to the PSM3 on OP Mainnet

The proposed Spark Artifact changes can be found in the following pull request: https://github.com/sky-ecosystem/next-gen-atlas/pull/147

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.