Spark's collaboration with Robinhood this time has massively distributed the yield originally exclusive to Sky's own USDS to other stablecoins. Yesterday, Robinhood announced that users depositing USDG can earn a 7% yield. However, in reality, the underlying mechanism will automatically convert it into Spark's spUSDG as a yield certificate. Spark will then dynamically allocate USDG assets, with most of it swapped into USDS, allowing it to flow into Spark's entire ecosystem to generate returns through channels like collateralized lending and liquidity provision. As shown in the two images below, USDS plays two roles. First, it acts as an intermediary for exchanging various stablecoins. Stablecoins no longer need to repeatedly set up trading pairs and pools individually. Instead, they only need to connect with USDS once. Previously, it was A-B, A-C, A-D... Now, it's A-USDS-XXX, with liquidity uniformly coordinated by USDS. Secondly, since all stablecoins are integrated with USDS, they can share a unified source of yield. There's no need to rack their brains figuring out how to generate interest for users. The underlying USDS dynamically allocates funds across various channels and strategies to earn returns for everyone.
