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# System prepended metadata

title: 'MIP116: D3M to Spark Lend'
tags: [Summaries]

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tags: Summaries
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# MIP116: D3M to Spark Lend

This is a summary of this proposal and its impact, from GovAlpha point of view:

- MIP116 proposes the instantiation of a D3M that will provide DAI liquidity to the Spark Lend Protocol for Spark Lend.
- Lend Spark ---the first product in the Spark Protocol by Phoenix Labs--- is a lending market with a front end. With Dai as its core element, it will enable a liquidity market for supplying and borrowing scalable crypto assets.
- The Aave V3 pool adapter will be configured so that the rewards will go to the Surplus Buffer.
- The adapter will enforce a fixed liquidity buffer on the DAI Pool while being subject to debt ceilings and other checking parameters.  
- The revenue earned by the Spark Protocol will be deposited in an Ecosystem Actor treasury contract controlled by Maker Governance; this will be the first-loss capital. When/if the Spark Protocol becomes a subDAO, it will become part of that subDAO's treasury. Specific parameters and interest rates can be found in the proposal.
- Phoenix Labs is simultaneously proposing two related SPFs: [MIP55c3-SP15: Phoenix Labs Initial Funding](https://forum.makerdao.com/t/mip55c3-sp15-phoenix-labs-initial-funding-spf/19733) and [MIP55c3-SP16: Phoenix Labs-Spark Lend Launch](https://forum.makerdao.com/t/mip55c3-sp16-phoenix-labs-spark-lend-launch/19734).
- This proposal has been assigned `High-Impact` based on the methodology listed [here](https://forum.makerdao.com/t/introducing-impact-estimations/14267).