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The total circulation of USDS stablecoin has surpassed the $10 billion mark. This milestone reflects the increasingly close ecological collaboration between Sky and Spark. The positive feedback loop formed between the two projects is becoming more and more evident.
Specifically, how it operates: USDS essentially serves as an important reserve asset for Spark, providing ample ammunition for the entire lending market. Spark leverages this advantage to attract more USDT and other stablecoins, making the entire liquidity pool more abundant.
What are the benefits of abundant funds? Lower lending rates, improved capital efficiency, and increased liquidity depth. Project teams and users have more flexibility to allocate funds across various DeFi sectors or deploy them into traditional financial channels to earn returns. This ecological closed-loop empowers both stablecoins and lending protocols.