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Spark Review

Publishes the close factor that most protocols hide

of 10

Spark publishes the health-factor threshold at which a liquidator may take the whole position rather than half — at or below 0.95, the close factor rises from 50% to 100%. Its core is inherited Aave code under a lapsed BUSL; its own PSM and controller are AGPL-3.0.

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Close factor

50% normally; 100% at health factor 0.95 or below

Core licence

BUSL-1.1 naming Aave; change date 27 Jan 2023, passed

PSM and ALM Controller

AGPL-3.0

Governance

Sky Governance process; delay not stated

Auditors

ChainSecurity, Cantina, Certora

Scores

Fee disclosure
3.0
Licence & code openness
6.0
Liquidation terms
8.0
Governance & timelock
6.0
Audit disclosure
8.0

Each criterion carries equal weight. The overall score is the average of these 5 scores — (3.0 + 6.0 + 8.0 + 6.0 + 8.0) ÷ 5 = 6.2.

Pros

  • Close factor published precisely: 50% normally, rising to 100% at a health factor of 0.95 or below
  • Spark PSM and ALM Controller released under AGPL-3.0, a strong copyleft open-source licence
  • Audits named and dated: ChainSecurity, Cantina and Certora
  • Parameters updated through the Sky Governance process

Cons

  • SparkLend core carries a Business Source License naming Aave as licensor, inherited from the fork
  • That licence's change date of 27 January 2023 has long passed, leaving its current status unclear on the face of the file
  • No reserve factor or protocol fee figures are published
  • No timelock duration is stated for Sky Governance

The 0.95 threshold is worth knowing

Spark documents that a maximum of 50% of a debt can be liquidated per call while the health factor is above 0.95, and that at or below 0.95 the entire position becomes liquidatable in a single call. Most protocols describe a close factor without publishing the point at which it doubles. For a borrower watching a position deteriorate, that number is the one that matters.

A licence inherited and expired

SparkLend core is forked Aave code and carries Aave's own Business Source License, naming Aave as licensor and Aave V3 Core as the licensed work, with a change date of 27 January 2023. That date passed years ago while the file text remained. Spark's own contributions — the PSM and ALM Controller — are AGPL-3.0, which is unambiguous.

What is not published

No reserve factor or protocol fee figures appear in the documentation, and no timelock duration is stated for the Sky Governance process.

How it compares

Sources

Scored from published primary sources rather than hands-on use. Every figure above comes from one of the pages below, on the date shown. Manufacturers change prices and specifications without notice — if something here no longer matches the source, tell us and we will correct it.

  1. 1.Spark — SparkLend liquidations — checked
  2. 2.SparkLend v1 core — LICENSE — checked
  3. 3.Spark PSM — LICENSE (AGPL-3.0) — checked
  4. 4.Spark — security and audits — checked

Frequently asked questions

When can Spark liquidate my whole position?

Spark states that at a health factor of 0.95 or below, up to 100% of the debt can be liquidated in a single call; above that, a maximum of 50%.

Is Spark open source?

Partly. The Spark PSM and ALM Controller are AGPL-3.0. SparkLend core carries an inherited Aave Business Source License whose change date has passed.

Nothing here is financial advice. Editorial policy · How we score · How we're funded.