Lenders deposit funds into Spark and receive interest payments from borrowers (supply-side fees).

Spark is a non-custodial lending protocol built on Ethereum. Spark’s development team Phoenix Labs was founded in early 2023.

SPK tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue).

governance

github

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Lending

Spark

SparkLend | Data breakdown

# Spark Operating expenses Methodology

## 1. Overview

Operating expenses are defined as the total onchain expenses incurred by the protocol, excluding token incentives. For Spark, these expenses are generated by the Spark Liquidity Layer and consist of realized losses from swap operations and boost costs paid to external venues to increase user yields. This metric is utilized to evaluate the net operational costs associated with the protocol's liquidity deployment strategies.

## 2. Data sources

- **Reported accounting data**: Daily operational and financial snapshots of the Spark Liquidity Layer, covering Ethereum, Base, and Avalanche

## 3. Step-by-step calculation

### Component A: Spark Liquidity Layer swap loss extraction

- **Purpose**: Captures realized losses from swap operations conducted by the Spark Liquidity Layer
- **Logic**: Daily accounting records for the Spark Liquidity Layer are filtered to isolate swap operations. Swap operations are identified where the protocol asset identifier ends with ' Swap'. Realized losses are captured when the net revenue is negative. These negative revenue values are inverted (multiplied by -1) to represent positive operating expenses.
- **Key fields**: `protocol_token` (asset identifier), `revenue` (net revenue)

### Component B: Spark Liquidity Layer boost cost extraction

- **Purpose**: Captures yield-boosting expenses paid to external venues by the Spark Liquidity Layer
- **Logic**: Daily accounting records are filtered to isolate boost costs. Boost costs are identified where the protocol asset identifier contains the string ' Boost Cost - ' and the net revenue is non-zero. These net revenue values are inverted (multiplied by -1) to represent positive operating expenses.
- **Key fields**: `protocol_token` (asset identifier), `revenue` (net revenue)

### Component C: Chain mapping and aggregation

- **Purpose**: Maps records to their respective blockchains and aggregates daily operating expenses
- **Logic**: Blockchains are assigned based on the suffix of the protocol asset identifier, where identifiers ending with ' - base' are mapped to Base, ' - avalanche_c' are mapped to Avalanche, and all other records default to Ethereum. Operating expenses are denominated in USDS (contract address `0xdc035d45d973e3ec169d2276ddab16f1e407384f`) and treated as USD-denominated values, bypassing further asset price conversions. Daily expenses are aggregated by timestamp, chain, and product, with missing days zero-filled.
- **Key fields**: `protocol_token` (asset identifier), `chain_id` (blockchain identifier), `operating_expenses` (calculated expenses)

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total operating expenses borne by the protocol, excluding token incentives.

SparkSPK

Operating expenses

Operating expenses

Competitive landscape

Chain breakdown