A new lending market just launched called Spark Lend; and boy is it sexy.

Let’s look at what it is, and then discuss the cool part which is how it came to be.

What is Spark Lend?

Put simply, it’s a dashboard that lets users play with different DeFi products, all in the name of supporting the decentralized stablecoin, DAI.

There’s a simple interface to do things like earn money through a high-interest, fixed-rate savings scheme, or lend money with a fixed rate of return.

How did it come about?

A group of developers from MakerDAO (the team behind DAI), banded together to create ‘Phoenix Labs.’

Spark Lend has borrowed Aave’s lending protocol, put a shiny new interface on it, and offered their own DAI-specific features.

Kind of like how Instagram took all of Snapchat's coolest features, and used it for themselves.

...except in this case, Aave are totally fine with it - because the Spark team will pay them 10% of all profits made within the DAI market.

This was voted on by the Aave community and approved. An open-source revenue-sharing agreement was established, and soon all of that will happen - automatically.

Instead of each team working separately on their own products, they shared resources to offer a better experience for all of DAI’s DeFi products.

This is the perfect example of combining resources, knowledge and creativity, to offer a better product and experience for users, that pushes the entire industry forwards.

Let's hope others follow suit.