SLL (Spark Liquidity Layer) is the core engine of the Spark lending protocol, integrating the functions of a "central control center, funding source, and yield factory," driving capital flow and yield generation in the DeFi space. Core Functions of SLL Cross-chain liquidity allocation: Achieved through SkyLink (self-developed cross-chain bridge) and Circle's CCTP technology, enabling rapid, secure, and slippage-free transfers of USDS, sUSDS, and USDC across multiple chains, automatically chasing high-yield opportunities. Stable growth of funds: SLL dynamically schedules funds in real-time, optimizing liquidity, yield, and reserve levels by combining on-chain monitoring with off-chain data. High-yield stablecoin: sUSDS offers substantial returns through diversified strategies, while USDS maintains stable exchanges with USDC. RWA and DeFi strategies: Engaging in real-world assets (such as U.S. Treasury-related products) and high-yield on-chain protocols (like Aave, Morpho) to achieve yield diversification. Three Major Components Sky Allocation Vault: Spark borrows USDS at low cost through the Sky main protocol (over $4.5 billion minted). Funds are allocated to DeFi protocols across the chain to mine yields, similar to a "DeFi Federal Reserve window." SkyLink: A native cross-chain bridge that automates and transfers assets without intermediaries, combining CCTP technology. Maximizing fund efficiency, with yields prioritized for high-chain allocation. Spark PSM (Peg Stability Module): Ensures slippage-free exchanges between USDS, sUSDS, and USDC. Reduces cross-chain exchange and arbitrage costs, maintaining peg stability. Sources of Yield Asset allocation: $3.1 billion deployed in: SparkLend ($900 million, lending and borrowing yields). BlackRock's BUIDL ($800 million, U.S. Treasury yields). Other DeFi (Aave, Morpho, Ethena) and RWA (Superstate, Maple, Centrifuge) products. Diversified strategies: Combining U.S. Treasury yields, high-yield DeFi positions, and strategic Vaults, balancing safety and returns. Dynamic Scheduling SLL monitors on-chain liquidity, yield rates, and reserve changes in real-time, automatically reallocating across chains, supplementing funds, or adjusting leverage. Example: A surge in deposits in the Base chain PSM prompts SLL to automatically bridge funds from Ethereum; idle USDC in Arbitrum is automatically transferred to high-yield chains. User Benefits Stable high yields: USDS/sUSDS offers safer and higher returns. Quality lending platform: SparkLend has strong liquidity and low risk. Passive investment returns: SLL optimizes capital allocation, allowing users to benefit without active management. Future Outlook The Spark Data Hub will soon open, showcasing on-chain fund distribution, yield performance, and strategy details, enhancing transparency. SLL drives a positive feedback loop for USDS, sUSDS, SparkLend, and RWA markets through intelligent scheduling and yield amplification, reshaping the yield standards for stablecoins. In summary: SLL is the core of Spark's capital aggregation and yield distribution, combining cross-chain scheduling, diversified strategies, and dynamic optimization, granting Spark a leading position in the DeFi and RWA sectors. Understanding SLL is to understand Spark's core value. #SparkFi #CookieSnaps $SPK