Suitable cryptocurrencies for spot buying--SPK $SPK
Many people think MakerDAO is a big loser, giving the most profitable lending business to Spark, and the money earned doesn’t need to be handed over, with all the benefits taken away by the sub-protocols.
Interestingly, the performance of the coin prices is completely the opposite: MakerDAO's token MKR has long since recovered, showing a strong trend; while Spark's SPK has dropped significantly like other altcoins.
Why is this happening? The key actually lies in the division of labor.
MakerDAO is now stepping back, mainly responsible for "printing money"—providing liquidity for stablecoins like DAI and USDS, no longer needing to personally get involved in business, thus avoiding the costs associated with growth, such as token subsidies.
On the other hand, these sub-protocols of Spark have to compete head-on with Aave and Compound, needing to use token incentives to attract users. For instance, if you deposit USDC on certain platforms to earn more than 5%, it includes SPK's subsidy, with all the selling pressure borne by Spark itself, not impacting MakerDAO.
So no matter how good Spark's business is, or how high its income is, the short-term coin price is still dragged down by subsidies.
However, this situation is changing—since July this year, Spark has become financially independent, keeping all its income, and in October it initiated token buybacks. The larger the scale, the more buybacks, which will support the coin price in the long run.
So the current situation looks more like MakerDAO has chosen a steadier path, letting the sub-protocols fight on the front lines while it takes a lighter approach, resulting in the coin price running out first.
Basically at the bottom, and recently the token shows signs of starting up, can buy good spot and wait for results.
Looking up at 0.7
Many people think MakerDAO is a big loser, giving the most profitable lending business to Spark, and the money earned doesn’t need to be handed over, with all the benefits taken away by the sub-protocols.
Interestingly, the performance of the coin prices is completely the opposite: MakerDAO's token MKR has long since recovered, showing a strong trend; while Spark's SPK has dropped significantly like other altcoins.
Why is this happening? The key actually lies in the division of labor.
MakerDAO is now stepping back, mainly responsible for "printing money"—providing liquidity for stablecoins like DAI and USDS, no longer needing to personally get involved in business, thus avoiding the costs associated with growth, such as token subsidies.
On the other hand, these sub-protocols of Spark have to compete head-on with Aave and Compound, needing to use token incentives to attract users. For instance, if you deposit USDC on certain platforms to earn more than 5%, it includes SPK's subsidy, with all the selling pressure borne by Spark itself, not impacting MakerDAO.
So no matter how good Spark's business is, or how high its income is, the short-term coin price is still dragged down by subsidies.
However, this situation is changing—since July this year, Spark has become financially independent, keeping all its income, and in October it initiated token buybacks. The larger the scale, the more buybacks, which will support the coin price in the long run.
So the current situation looks more like MakerDAO has chosen a steadier path, letting the sub-protocols fight on the front lines while it takes a lighter approach, resulting in the coin price running out first.
Basically at the bottom, and recently the token shows signs of starting up, can buy good spot and wait for results.
Looking up at 0.7
