MakerDAO and Spark Protocol Guide 2026: DAI, USDS, and DeFi's Central Bank

MakerDAO is DeFi's central bank — issuing DAI and USDS stablecoins backed by crypto and real-world assets. This guide covers how to earn on Spark and understand DAI stability mechanics.

MakerDAO is one of DeFi's foundational protocols, operating since 2017. It issues DAI (now USDS), a decentralized stablecoin backed by crypto collateral and real-world assets. In 2026, MakerDAO manages $8B+ in total system collateral and earns $500M+ annually in protocol revenue.

How DAI/USDS Maintains Its Peg

Spark Protocol: MakerDAO's Lending Frontend

Spark (spendDAO) is the official lending frontend for MakerDAO, built on Aave V3's codebase. Users borrow USDS at competitive rates, deposit ETH or stablecoins for yield, and access the highest DSR rates. Spark consistently offers among the best USDC and USDS yields in DeFi.

MKR Token: Governance and Risk Absorber

MKR token holders govern the MakerDAO system — setting stability fees, collateral types, and risk parameters. In the event of undercollateralization (system deficit), MKR is minted and sold to cover losses. Conversely, when the system generates surplus, DAI is used to buy and burn MKR. MKR functions like equity in a central bank.