At a glance
Spark Protocol ↗ is the lending hub inside the Sky (MakerDAO) ecosystem, with $4B in TVL spread across Ethereum, Gnosis, and Base. It forked from Aave v3 and focuses on DAI/USDS markets at rates governed by Sky/Spark DAO. Euler V2 ↗, relaunched in 2024 after a major exploit, is a modular lending platform offering permissionless vault creation through its EVK. With $1B TVL, it operates on Ethereum, Base, Swell, and BOB. Spark suits passive lenders who want deep stablecoin liquidity, while Euler targets builders who need isolated, customizable markets.
Key differences
TVL — Spark holds $4B, more than 4× Euler’s $1B. That gap reflects Spark’s tight Maker integration and user preference for a single, liquid DAI/USDS pool rather than Euler’s many smaller isolated vaults.
Chain coverage — Spark currently live on three chains (Ethereum, Gnosis, Base) while Euler extends to four (Ethereum, Base, Swell, BOB). Both share Ethereum and Base, but Euler’s presence on Swell and BOB gives it an edge for users targeting emergent L2s.
Architecture — Spark is a shared-money-market fork of Aave v3 with unified liquidity, where all assets interact in a common pool. Euler V2 deploys completely isolated vaults: anyone can spin up a market with custom oracles, interest-rate models, and risk parameters. This makes Spark predictable but rigid, Euler infinitely flexible but fragmented.
Governance — Spark’s rates and parameters are set by Sky/Spark DAO, aligning closely with the Maker ecosystem’s stability mandate. Euler DAO governs protocol upgrades, but the vault creator controls each market’s settings. It’s a choice between centralized rate-setting and fully permissionless market design.
Security and track record
Spark has been live since 2023 without reported incidents. It inherits Aave v3’s battle-tested codebase, audited by ChainSecurity and Cantina. Euler’s history is more complicated: the original protocol suffered a $200M+ exploit in 2023 (not listed in its current incidents file, but publicly documented), after which the team rebuilt and relaunched Euler V2 in 2024 with full user recovery. The new code was audited by Spearbit, Certora, and ChainSecurity — a broader set than Spark’s two firms. While Spark benefits from indirect security through Aave v3’s track record, Euler V2’s redesign explicitly addresses the attack vector. Both are well-audited, but Euler’s incident may give some users pause despite the recovery.
Fees and costs
Neither protocol’s fee data is included in our dataset. Spark likely mirrors Aave v3’s fee model with a borrow-rate spread and flash-loan fees, all set by governance. Euler V2 allows vault creators to configure their own fee parameters, so costs vary per market. For current figures, check spark.fi and euler.finance directly.
Which should you choose
Pick Spark Protocol ↗ if you hold DAI or USDS and want a simple, liquid lending market with predictable rates governed by the Maker ecosystem. Its deep pool and strong Maker integration make it the safer, more user-friendly option for passive suppliers and borrowers.
Pick Euler V2 ↗ if you need to build isolated lending markets, set your own collateral types or interest models, or operate on chains like Swell and BOB. It’s the tool for power users and curators who value permissionless design over pooled liquidity.
Verdict
Spark’s $4B TVL and MakerDAO backing make it the stronger pick for most users seeking a reliable lending market. Euler V2, however, opens up permissionless vault creation that Spark can’t match. The winner is context-dependent: choose stability with Spark, or flexibility with Euler.