Sky proposes six-part Spark spell for September 10

What happened

Phoenix Labs published the canonical technical scope for a proposed six-part Spark spell covering Ethereum and Gnosis Chain.

What changed

The proposal would zero 34 unused SLL rate-limit keys, set SparkLend LBTC LTV to zero, make remaining Gnosis SparkLend borrowers liquidatable, lower the Ethereum USDT slope-one spread, authorize SLL access to a Sentora-curated RLUSD Morpho vault, and extend recurring reserve routing.

What did not change

The proposal is not yet executed. It upgrades no Spark contract, grants or rotates no role, leaves LBTC’s liquidation threshold unchanged, and does not alter the Ethereum SparkLend market through the proposed Gnosis deprecation.

Confirmed

• The document identifies itself as the canonical proposal for the spell.
• LBTC maximum LTV would fall from 74% to 0% while its 75% liquidation threshold remains unchanged.
• Five Gnosis collateral reserves would receive 0% LTV and 0.01% liquidation thresholds, and WETH and wstETH would leave e-mode category 1.
• The proposed USDT strategy reduces the slope-one spread over the Sky Savings Rate from 0.50% to 0.10%.
• The proposed RLUSD Morpho-vault integration would receive a 10 million RLUSD deposit limit and unlimited withdrawal setting.
• No Spark contract upgrade or role rotation is included.

Still open

• Whether the SPK Snapshot polls for the two SLL scope changes pass.
• Whether the August 27 spell executes and creates the spUSDG and spRLUSD token addresses required by the reserve-routing edit.
• The final deployed and verified USDT strategy, RLUSD vault, adapter, oracle, curator, allocator, and sentinel addresses.
• Whether the Gnosis AMB relay rehearsal succeeds before execution.
• Whether Sky approves and executes the spell on or after the projected September 14 date.
• Whether third-party liquidators clear all residual Gnosis debt without bad debt or operational delay.

What it means for an advisor

• Review the SparkLend memo for the proposed Gnosis closure mechanics, LBTC collateral deprecation, and thinner target liquidity in the Ethereum USDT reserve.
• Review the Spark Liquidity Layer memo for both the removal of unused relayer authority and the proposed new externally curated RLUSD allocation venue.
• Do not treat the proposal, audits, or planned pre-deployments as evidence of successful execution or product suitability.
• Reconcile the final payload and execution receipts against every unresolved deployment address and cross-chain prerequisite.