Spark (SPK)

🚨 ⚡️SPARK ARRIVES ON AVALANCHE! $SPK announces its expansion on $AVAX, with a deployment in two phases. Phase 1 - Available now: 👉 "Spark Savings USDC" product accessible to AVAX users 👉 Stable & fixed yields 👉 Triple reward: SUSR + AVAX + Spark Points Phase 2 - Coming soon: 👉 Future integration of the Avalanche Card to spend yields in real time

Spark is delivering big right now With a massive market cap (> $7B) and solid stablecoin yields it’s one of the best places to park your USDC / USDT while waiting for better market conditions before jumping back in

🚨 WILL SPARK LAUNCH MASSIVE BUYBACKS ON $SPK? The SAEP-06 proposal brings a major topic to the forefront: under what conditions the DAO can use its USDS to buy back $SPK, and especially when this mechanism can actually be activated. The operation is simple: Spark can only trigger buybacks if its treasury exceeds a level considered essential for protocol safety. This level is based on two key components: a reserve to cover risks associated with on-chain positions, and a budget covering two full years of operation, including the team, development, maintenance, and operations. 👉 As long as Spark does not exceed this minimum threshold, no buyback is possible. 👉 Once this threshold is exceeded, all excess can be used to buy back $SPK. Based on the historical data examined, this threshold would never have been crossed, meaning no buyback would have been triggered in the past. But if we project the

Some specific calculations of the Spark buyback plan: Since separating from Sky in July 2025, the treasury has accumulated $32 million in revenue. When revenue reaches $35-45 million, the initial buyback (excess 10%) will be launched. When the treasury reaches $70-90 million, the enhanced buyback (excess 100%) will be launched. Based on the current pace, the initial buyback could start as early as Q4 2025 and as late as Q1 2026. The enhanced buyback will take 1-2 years to achieve.

Wu reports that decentralized finance platform Spark posted that it is launching a governance vote to introduce a “programmatic buyback” mechanism. It states that since the June TGE, the protocol has deposited over $10 million net revenue into the SubDAO treasury. According to the proposal, each month 10% of the SubDAO Proxy assets exceeding the “target value” will be used to buy back SPK on the secondary market, with the bought‑back SPK returned to the SubDAO Proxy as reserves, and the buyback scale will increase as excess capital accumulates. https://t.co/L8lMrct7oR

I took a look at Spark's buyback proposal: The core design is to create a DAO Proxy treasury using protocol revenue, which includes risk reserves, product loss reserve, and operational reserve, and the protocol calculates a target value. The buyback is triggered when accumulated revenue exceeds this target; each month, 10% of the excess is used to repurchase $SPK, and if the excess reaches 200% of the target, the entire excess is used for buybacks. The calculation of this DAO Proxy target value is split into two parts. Risk reserves and product loss reserves are categorized as capital reserve needs, while the other part is operational reserve needs. The final target value is the maximum of the two, not their sum. Risk reserves are basic parameters set by Sky, providing a fundamental safety net for the protocol. Product loss reserves act as a risk buffer for products such as Spark Savings, SparkLend, etc., and are used when necessary to cover potential losses and bad debts. Currently, Spark SLL estimates annual revenue at $24 million, based on current market size and interest rate environment. The standard buyback uses 10% of the funds exceeding the target, which is relatively conservative, but if the excess reaches twice the target, the buyback intensity is increased, and this enhanced level is fairly significant. Therefore, the overall design first satisfies the protocol's safety reserves, then retains a portion of extra reserves for modest buybacks; when the market rises rapidly or the protocol expands beyond the target (over twice the target), it conducts full buybacks. The buyback design is fairly standard; the absolute buyback numbers may not be large at present, as the treasury hasn't accumulated for long. Aave also began discussing buybacks after accumulating satisfactory capital. Buyback effects take time to materialize. This proposal places more emphasis on formally allocating protocol revenue to risk reserves, effectively providing the protocol with insurance.

Spark puts real revenue into the treasury and then conducts a buyback, Essentially, it writes “earn money → buy tokens” into the protocol layer, Effectively aligning operations, treasury management, and incentives on a single line, Entering a new phase of “self-accumulation and self-strengthening”; Damn it: SPK is equipped with an automatic long engine. If the market improves, can it take off? https://t.co/YmnAPzuOsd

Spark is voting on its SPK buyback program!