Spark approves removing USDC, USDT, and PYUSD reserve caps

What happened

Spark governance approved removing supply-cap and borrow-cap automation and setting the USDC, USDT, and PYUSD supply and borrow caps to zero on Ethereum SparkLend.

What changed

The approved configuration would remove explicit reserve-level exposure ceilings for the three stablecoins once implemented.

What did not change

On-chain execution was not established by the retained record. The three assets remained non-collateral under the proposal, and approval did not reopen Ketju's rejected SparkLend memo.

Confirmed

• The official Spark vote concluded with the For option prevailing.
• USDC, USDT, and PYUSD were the only reserves covered.
• The approved specification sets each reserve's supply cap and borrow cap to zero, meaning no cap.
• The proposal states that the assets are not usable as collateral.

Still open

• The implementation transaction and effective on-chain parameters.
• Post-implementation utilization, concentration, available liquidity, and any replacement exposure controls.

What it means for an advisor

• Review the Sky dependency map because uncapped SparkLend reserves can change balance-sheet concentration and liquidity behavior.
• Keep SparkLend allocation at zero unless its asset-specific reopen criteria are independently satisfied, including live exit and utilization tests.