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Spark Protocol votes to reactivate WBTC collateral and expand liquidity layer: Sky Ecosystem

🤖 GG AI Summary

Spark Protocol plans to reactivate Wrapped Bitcoin (WBTC) collateral on SparkLend and enhance its liquidity infrastructure by adding USDT-related features and a Uniswap v4 pool. This move follows a 1.5-year period without incidents under the updated WBTC structure, leading to a reassessment of its risk and a decision to reintegrate WBTC. The proposal also includes Spark Treasury grants for Q2 2026, signaling growth and renewed confidence in the protocol's ecosystem.

Sentiment: 83% Bullish

Spark Protocol is moving to reactivate Wrapped Bitcoin (WBTC) collateral support on SparkLend and expand its liquidity layer infrastructure, according to a proposal published Monday. The changes include re-enabling WBTC collateral functionality, adding USDT and USDT transfer asset rate limits to Anchorage, and onboarding a Uniswap v4 USDT/USDS pool. The proposal also covers Spark Treasury grants for Q2 2026.WBTC collateral support was disabled in late 2024 due to governance and custody concerns in the WBTC ecosystem. The asset has now operated under the updated structure for approximately 1.5 years without incident, prompting the Spark Foundation to reassess its risk profile for re-listing on the protocol.Sources: Sky Forum - Proposed Changes to Spark | Sky Forum - WBTC Asset ReviewTo continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io

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