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).

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Lending

Spark

SparkLend | Data breakdown

# Spark Spark Liquidity Layer AUM Methodology

## 1. Overview

Spark Liquidity Layer AUM measures the total value of assets managed by the Spark Liquidity Layer. The aggregate liquidity deployed across various integrations and accounts is reflected by this metric, with holdings of Spark's own asset, SPK, being excluded. Visibility into the scale of capital allocated through the protocol's liquidity routing and management systems is provided to institutional investors. The treasury of Spark is not represented by this metric.

## 2. Data sources

- **Blockchain events**: ERC-20 token transfers, `Mint`, `Burn`, and `BalanceTransfer` events from `spToken` and `AToken` contracts, and `ReserveDataUpdated` events from `Pool` and `LendingPool` contracts, covering Ethereum, Arbitrum, Optimism, Base, Gnosis, and 9 other chains
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Standard account balance tracking

- **Purpose**: Track balance changes for standard assets held in Spark Liquidity Layer accounts
- **Logic**: ERC-20 token transfers to and from designated Spark Liquidity Layer accounts (including `ALM_Proxy`, `PSM3`, `Morpho D3M4626TypePool`, and `Sub_Proxy`) are parsed. Balances are increased by inbound transfers and decreased by outbound transfers. Assets identified as non-AUM assets (specifically Spark's own asset SPK) and rebasing tokens are excluded from this component.
- **Key fields**: `block_timestamp`, `token_address`, `amount`

### Component B: SparkLend deposit tracking

- **Purpose**: Calculate index-adjusted active deposits within SparkLend
- **Logic**: `Mint`, `Burn`, and `BalanceTransfer` events from `spToken` contracts are aggregated to calculate the scaled principal balance for Spark Liquidity Layer accounts. This scaled balance is then multiplied by the liquidity index extracted from the latest `ReserveDataUpdated` events from `Pool` contracts to determine the actual active deposit balance.
- **Key fields**: `block_timestamp`, `deposit_token_address`, `amount`, `liquidity_index`

### Component C: Aave V3 deposit tracking

- **Purpose**: Calculate index-adjusted active deposits within Aave V3
- **Logic**: `Mint`, `Burn`, and `BalanceTransfer` events from `AToken` contracts are aggregated to calculate the scaled principal balance for Spark Liquidity Layer accounts. This scaled balance is then multiplied by the liquidity index extracted from the latest `ReserveDataUpdated` events from `LendingPool` contracts to determine the actual active deposit balance.
- **Key fields**: `block_timestamp`, `deposit_token_address`, `amount`, `liquidity_index`

### Component D: Ethena cooldown balance tracking

- **Purpose**: Capture assets currently in the Ethena cooldown escrow
- **Logic**: Cooldown balances are extracted from Ethena sUSDe cooldown balance records for Spark Liquidity Layer accounts.
- **Key fields**: `timestamp`, `token_address`, `amount`

### Component E: USD conversion and aggregation

- **Purpose**: Combine all AUM components, normalize by decimals, and convert to USD
- **Logic**: The daily balances from standard accounts, SparkLend deposits, Aave V3 deposits, and Ethena cooldowns are combined. Asset amounts are normalized by decimal precision using asset metadata. The daily balances are converted to USD using end-of-day price feeds and aggregated to produce the final daily Spark Liquidity Layer AUM.
- **Key fields**: `timestamp`, `spark_liquidity_layer_aum`

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

Total USD value of assets managed by the Spark Liquidity Layer.

SparkSPK

Spark Liquidity Layer AUM

Spark Liquidity Layer AUM

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