Sky ecosystem's lending sub-DAO Spark Protocol plans to allocate $1.10 billion of its liquidity layer balance sheet to Ethena's USDe and sUSDe tokens to improve capital efficiency. USDe, an algorithmic stablecoin launched in 2024, is currently the fourth-largest stablecoin by market capitalization and is in the spotlight for the gains available to its holders. The Spark team expects the allocation to achieve an annualized yield of around 27% under favorable market conditions, driving revenue growth in the Sky ecosystem and improving returns for USDS savings depositors. The Spark Liquidity Layer manages $6.20 billion of stablecoin liquidity and allows users to convert USDC and Sky's USDS or sUSDS tokens across multiple networks.