SparkLend

Fees are defined as the total economic value paid by users to utilize SparkLend. This is primarily comprised of interest paid by borrowers on active loans, premiums paid for executing flash loans, and liquidation penalties incurred during collateral liquidations. This economic activity is generated by the lending protocol and is distributed to depositors as supply-side fees or retained by the protocol treasury. To prevent double-counting across the Spark ecosystem, interest fees are netted against the yield earned by the Spark Liquidity Layer on its SparkLend deposits.Learn more