[Ethereum] SparkLend - Claim Accumulated Reserves and Send to Liquidation Multisig - January 19, 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:

SparkLend has accumulated significant reserves in various asset denominations. We propose to claim all reserves, which will allow them to be used to meet risk capital requirements (RRC). Now that Spark is capital constrained, we gain significant benefit from increasing our risk capital. Spark’s return on equity is equivalent to the spread of asset yield vs cost (Sky base rate), divided by capital risk rating (CRR) for the marginal asset that we would be forced to reduce allocation to in order to remain within RRC limits; in many cases this RoE may be 30-50% or more, indicating that consolidation of all assets into the subproxy as USDS outperforms any other possible investment strategy including holding the funds in the SparkLend reserves untouched.

For reserves of stablecoins in SparkLend that are supported by SLL, we can claim these directly to the ALM Proxy without a specific poll under standing authorization in the Spark artifact, and the increase in SLL NAV will be credited to the Spark subproxy as USDS profit as part of a future monthly settlement cycle. For non-USD assets or any USD assets that are not supported by SLL, we propose to transfer them to the Spark Operations Multisig to be liquidated for USDS, which will then be transferred back to the Spark subdao proxy.

We propose to add this as a recurring item for future spells, including this into the Spark Artifact at section A.6.1.1.1.2.6.1.2.1.2.3 with the following language change (added text italicized):

A.6.1.1.1.2.6.1.2.1.2.3 - Token Claim Authorization

Phoenix Labs is authorized to propose the inclusion of transfers of accrued treasury and collector revenues from the Active Instances to the Spark ALM Proxy in a Spark Spell. Additionally, for non-USD-denominated reserve assets, or USD-denominated reserve assets that are not supported by the Spark Liquidity Layer, the reserves can be transferred to the Spark Operations Multisig at address (0x2E1b01adABB8D4981863394bEa23a1263CBaeDfC) to be liquidated for USDS, with the proceeds of sale transferred to the Spark SubDAO Proxy. This request must be posted to the Sky Forum under the Spark Prime category. The Operational Executor Agent must formally approve the inclusion of the transfer in a Spark Spell, with no token holder vote needed.

Parameter summary:

• Claim SparkLend USDS, USDC, DAI, PYUSD, and USDT and send to SparkALM Proxy
  • Recipient address: 0x3300f198988e4C9C63F75dF86De36421f06af8c4
• Claim all other SparkLend reserves, and send to Spark Operations Multisig
  • Recipient address: 0x2E1b01adABB8D4981863394bEa23a1263CBaeDfC

The proposed Spark Artifact changes can be found in the following pull request: https://github.com/sky-ecosystem/next-gen-atlas/pull/159

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.