Spark Protocol Integration Could Enhance Polygon zkEVM Chain

Spark Protocol Proposal for Deployment on Polygon zkEVM Chain

Spark Protocol has recently unveiled a proposal to deploy its system on the Polygon zkEVM chain, with a primary focus on solidifying the position of DAI and sDAI while creating a core building block for DeFi.

Spark Protocol, an open-source ZK-Rollup project, has announced this proposal as part of its efforts to foster growth and innovation in the multi-chain EVM ecosystem.

Polygon zkEVM’s Mainnet Beta and Impressive Growth

Polygon zkEVM was launched as mainnet beta on March 27, 2023, and it has shown remarkable growth with a staggering 12,500% increase in just two months. The number of unique wallets using Polygon zkEVM has exceeded 213,000, and transactions have surged by 18 times during the same period. This exponential growth is just the beginning, as many new protocols are expected to launch in the next phase of expansion.

Integration Details and Use-Cases

The proposed integration involves transitioning from the existing DAI implementation on Polygon zkEVM to two new contracts: Native DAI and sDAI. Native DAI consists of two contracts, L1_Escrow and NativeDAI, which will enable seamless bridging of DAI to and from zkEVM. On the other hand, sDAI will utilize the Native ERC-20 Bridge to represent DAI deposited in DSR.

Furthermore, Spark Protocol aims to onboard collaterals such as WETH, wstETH, and DAI via Chainlink, leveraging Chainlink Price Feeds to fulfill its oracle needs.

The deployment on Polygon zkEVM chain is expected to provide novel use-cases supporting public good infrastructure and boost growth and demand for sDAI across all channels.

Seeding Initial DAI Liquidity and Collaborations

The plan also includes options to seed initial DAI liquidity for Spark’s launch on zkEVM, with a minimum target size set at $500,000.

Developers have already begun laying the groundwork for Spark’s deployment on Polygon zkEVM. Additionally, collaborations with Balancer and LayerZero Labs are in place, which include bridge contracts enabling sDAI to be seamlessly bridged to Polygon zkEVM for use in DeFi applications.

Conclusion

The proposal for Spark Protocol’s deployment on Polygon zkEVM chain represents a significant step towards enhancing the capabilities of the multi-chain EVM ecosystem. With its focus on DAI and sDAI and the support from collaborations, Spark Protocol is poised to make a meaningful impact on the DeFi landscape.