#Sky Mavis' sub-DAO invests $1.1B#

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Overview

Spark, the lending sub-DAO within the Sky ecosystem, plans to allocate up to $1.1 billion of its liquidity layer balance sheet to Ethena’s USDe and sUSDe tokens. This move aims to generate revenue for Sky and maximize returns for USDS depositors by directly investing in Ethena's stablecoins, thereby achieving an estimated 27% annualized return rate under "favorable market conditions."

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Analysis

Spark, the lending sub-DAO within the Sky ecosystem, is allocating up to $1.1 billion of its liquidity layer asset-liability sheet to Ethena’s USDe and sUSDe tokens. The team expects to earn approximately 27% APY under “favorable market conditions,” which will help generate revenue for Sky and maximize returns for USDS depositors. This move aims to enhance Spark’s yields through direct investment in Ethena's stablecoins and generate more revenue for the Sky ecosystem.

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Sky's loan sub-DAO Spark will invest $1.1 billion in Ethena's USDe and sUSDe tokens, aiming to generate returns through direct investments.

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Spark Protocol is expected to achieve an estimated APY of approximately 27% through investing in Ethena's USDe and sUSDe tokens under favorable market conditions.

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This investment will help Sky generate revenue and maximize returns for USDS depositors.

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Spark Protocol, as the lending sub-DAO within the Sky ecosystem, will utilize its liquidity layer asset balance sheet for investments.

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