Spark Financials
Revenue
Spark generates revenue from multiple sources. Currently we track the following:
Net Interest Income: Portion of total interest generated through lending. Exact portion of interest that is collected by Spark varies by asset and market, known as the reserve factor. Reserve factors for most assets are set by Spark Governance, and typically range between 10%-35%.
For DAI and USDS the portion of interest collected by the treasury is not set using a reserve factor. Instead, Spark collects the difference between the variable borrow rate and the Dai savings rate (DSR) / Sky saving rate (SSR).
Flash Loan Fees: Fees charged on flash loans, proportional to the amount borrowed and currently set at 0.05%. Fees are split between LPs and the Spark Treasury.
Liquidation Fees: Portion of the liquidation bonus collected for the Spark Treasury. Rates are set by governance and typically range between 10-20%.
Royalties: Licencing fees paid by Spark to Aave for licencing Aave V3 code.