#Sky invests $1.1 billion#

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Sky's lending sub-DAO Spark plans to allocate up to $1.1 billion of its liquidity layer balance sheet to Ethena's USDe and sUSDe tokens, expecting to earn roughly 27% APY. This move aims to generate revenue for Sky and maximize returns for USDS depositors.

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Analysis

Sky's lending sub-DAO Spark has announced an investment of up to $1.1 billion in Ethena's USDe and sUSDe tokens. This move aims to leverage its liquidity layer balance sheet by directly investing in Ethena's stablecoins, anticipating an estimated annual percentage yield (APY) of approximately 27% under "favorable market conditions." This will help Sky generate revenue and maximize returns for USDS depositors. As part of the Sky ecosystem, Spark Protocol, by investing in Ethena's stablecoins, aims to optimize its liquidity layer balance sheet and generate significant returns for Sky.

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Sky's loan sub-DAO Spark will invest $1.1 billion in Ethena's USDe and sUSDe tokens.

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This investment aims to generate revenue for Sky and maximize returns for USDS depositors by earning approximately 27% APY.

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Spark Protocol will use its liquidity layer balance sheet to make the investment.

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This move signifies that Sky is actively seeking to leverage its funds to generate returns and create value for its users.

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