Blue-chip collateral is one of the terms often seen in Spark, and it is a core element behind Spark’s stability and institution friendly framework.
Blue-chip collateral has a few key features.
- High market cap and liquidity: Assets must have a large and active market that can absorb institutional scale transactions.
- Low volatility: Prices should stay relatively stable to minimize protocol risk from sharp drops in collateral value.
- Proven resilience: Assets must have a long track record that demonstrates reliability.
Stability above everything. The primary blue-chip collateral used by Spark is stablecoins. USDS, USDT, and USDC meet all three features.
ETH and BTC also qualify as blue-chip collateral, supported by deep liquidity and long standing stability across the DeFi ecosystem. These assets are suitable for large scale collateral activity.
Spark continues to expand through blue-chip collateral.
Its stability allows for higher LTV ratios, helping users maximize capital efficiency.
By applying strict risk management policies to blue-chip collateral, Spark has evolved into an institutional grade protocol. Risk parameters such as liquidation thresholds and interest rate models are optimized for each asset.
This creates an environment where users, especially institutional investors, can deploy capital with confidence.
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