# Spark Savings Revenue Methodology

## 1. Overview

Revenue for Spark Savings is defined as the portion of fees and rewards retained by the protocol from its savings operations. These earnings are generated from rewards owed by Sky on referred savings balances, which include distribution rewards, rewards on Asset Liability Management (ALM) proxy sUSDS, and the Agent Rate on USDS held for Spark. All revenue is denominated in USDS and recorded directly in USD, bypassing subsequent price conversions. This metric is utilized to highlight the income generated by Spark Savings through its referral and integration partnership with Sky.

## 2. Data sources

- **Protocol reported data**: Daily accounting records of distribution rewards owed by Sky on referred savings balances, covering Ethereum, Avalanche, Robinhood Chain, and other supported chains

## 3. Step-by-step calculation

### Component A: Referral reward extraction

- **Purpose**: The extraction of daily rewards owed by Sky on Spark referred balances.
- **Logic**: Daily accounting records are parsed from the reported rewards dataset. Only rows representing active Spark referrals (where the referral type is classified as 'Spark referrals') are selected. Distribution rewards, rewards on Asset Liability Management (ALM) proxy sUSDS, and the Agent Rate on USDS held for Spark are captured within these records.
- **Key fields**: `timestamp` (timing), `reward_usd` (reward amount in USD), `referral_type` (referral classification)

### Component B: Chain mapping and asset normalization

- **Purpose**: The standardization of chain identifiers and asset metadata.
- **Logic**: Chain identifiers are standardized to ensure consistency across the platform (for example, 'avalanche_c' is mapped to 'avalanche', and 'robinhood' is mapped to 'robinhoodchain'). The reward asset is identified as USDS, and the contract address `0xdc035d45d973e3ec169d2276ddab16f1e407384f` is assigned.
- **Key fields**: `chain_id` (standardized chain), `token_address` (USDS contract address)

### Component C: Daily aggregation and USD flag assignment

- **Purpose**: The aggregation of daily revenue and the assignment of price conversion bypass flags.
- **Logic**: Reward amounts are summed by day, chain, and product. The income type is designated as 'incentive'. Because the reported values are already denominated in USD, an on-chain price conversion bypass flag is assigned to prevent subsequent price multiplications during final metric aggregation.
- **Key fields**: `revenue` (summed reward USD), `is_usd` (set to true)

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

Revenue

Asset management

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).

Spark Savings

Revenue

Revenue

Chain breakdown