Spark Prime has proposed to deactivate sUSDS and sDAI collateral on the Ethereum network within SparkLend. The proposal includes setting the supply cap for both assets to 1 and adjusting the maximum loan-to-value (LTV) ratio to 0%, while maintaining the stablecoin mode liquidation threshold. Existing positions will not face new liquidation risks.
Additionally, the proposal suggests raising the PYUSD interest rate model's base rate to the Sky Savings Rate (SSR) and reducing Slope 1 to 2% to stabilize borrowing rates and boost PYUSD circulation. These changes await approval from Sky governance and the Stability Facilitator before being included in the next execution vote.
SparkLend Proposes Deactivation of sUSDS and sDAI Collateral on Ethereum
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