DeFi lending protocol Spark has redirected $100 million of its stablecoin reserves to Superstate's Crypto Carry Fund (USCC), a regulated, market-neutral yield fund. This strategic move aims to diversify Spark's income sources as U.S. Treasury yields decline. USCC, managing $528 million in assets, capitalizes on spreads in the spot and futures markets of major digital assets to generate returns.
Spark's decision is influenced by the Federal Reserve's potential rate-cutting cycle, which poses risks to DeFi protocols dependent on short-term Treasuries. The shift towards crypto-native yield strategies, such as basis trading and restaking, reflects Spark's adaptation to the evolving financial landscape.
Spark Allocates $100M to Crypto Carry Fund Amid Treasury Yield Decline
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