SparkLend, part of the Sky Protocol ecosystem, has borrowed over $725 million in wrapped Ether (WETH) at a variable rate of 1.81%. This low borrowing cost is pegged to stETH staking yields, offering competitive rates compared to traditional finance. The protocol's utilization rate is 70.7%, indicating active lending of deposited funds. As of May 21, SparkLend had $761 million in WETH borrowed at a slightly higher rate of 1.85%, with a utilization rate of 72.1%. The protocol has maintained borrowing volumes between $700 million and $760 million since January, with modest fluctuations. SparkLend operates as an Aave V3 fork under Sky governance, providing ETH holders with cost-effective leverage options in DeFi. SparkLend's strategy ties borrowing rates to external yield benchmarks rather than algorithmic interest rate curves. This approach carries risks, such as potential shifts in staking yields affecting borrowing rates and concentration risk due to heavy reliance on a single asset class. A significant ETH price drop could impact both borrowers and the collateral base.