Spark Savings

Spark Savings receives a B risk grade (22/100) from Hindenrank, where lower scores indicate lower risk. Lower risk — simple yield-bearing wrapper backed by DeFi's most battle-tested stablecoin protocol, but yield is governance-dependent and subject to significant rate changes Spark Savings lets you earn yield on DAI and USDS stablecoins by depositing them into the Sky (formerly Maker) Savings Rate module. You receive sDAI or sUSDS tokens that automatically appreciate in value as yield accrues, currently at approximately 3.65% APY. With $3.0B in deposits and the battle-tested MakerDAO/Sky infrastructure behind it, Spark Savings earns a B risk grade. The protocol expanded into institutional lending via Spark Prime (February 2026) with $150M deployed by Q1 end.

The key risks identified for Spark Savings are: (1) Your yield rate is controlled by Sky Protocol governance and can change significantly. The rate has been cut multiple times — most recently in April 2026 to ~3.65%. Rates could be cut to near-zero in a crisis, though your principal remains safe. (2) While the sDAI wrapper is simple, your yield comes from Sky Protocol's complex operations: lending, real-world assets, and the Peg Stability Module. S&P Global gave Sky Protocol a B- credit rating citing a risk-adjusted capital ratio of just 0.4% and governance centralization — failures in these underlying operations could ultimately impact the savings rate. (3) sDAI is widely used as DeFi collateral on Aave and Morpho, creating leveraged yield strategies. If rates are suddenly cut, leveraged positions unwind, which could cause temporary market disruption. SparkLend removed sDAI/sUSDS as collateral in Q1 2026, reducing one direct source of circular leverage.

Spark Savings scores 22/100 across eight risk dimensions: Mechanism Novelty: 2/15, Interaction Severity: 4/20, Oracle Surface: 1/10, Documentation Gaps: 1/10, Track Record: 1/15, Scale Exposure: 7/10, Regulatory Risk: 3/10, Vitality Risk: 3/10. The highest risk area is Scale Exposure at 7/10.

Among 119 rated Yield protocols on Hindenrank, Spark Savings ranks #3 by safety (lowest risk score = safest). Its 22/100 risk score and B grade place it among the safer Yield protocols.

Spark Savings scores 1/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.