MakerDAO has launched the DeFi lending protocol Spark Protocol, which aims to improve the decentralized lending solution of the stablecoin DAI. DAI is the fourth largest stablecoin with a market cap of $4.7 billion, behind USDT, USDC and BUSD. Users can use assets such as ETH, stETH and DAI as collateral to obtain loans. Spark is independent of MakerDAO's main mechanics. MakerDAO added that starting Tuesday, Spark will be available to all DeFi users. Borrowers can initially obtain a DAI loan from Spark at an annual interest rate of 1.11%. Borrowing rates are determined by governance members through on-chain voting, rather than fluctuating based on supply and demand like Aave or other lending protocols. Spark will integrate with MakerDAO's Peg Stability Module (PSM) to convert DAI to USDC at a ratio of 1:1. Spark was created by research and development company Phoenix Labs.