Spark's Chief Strategy Officer: The previous tightening of collateral requirements led to a significant loss of business, but ensured liquidity safety.

CoinFeed reported on April 20th that monetsupply.eth, Spark's head of strategy, stated on the X platform that Spark abandoned rsETH (along with other low-usage assets) in January and has been continuously tightening collateral and feature sets. Spark set a high maximum borrowing rate for the SparkLend ETH market, while Aave lowered the maximum ETH borrowing rate to below 10%, causing users to switch to borrowing from Aave, resulting in Spark losing significant business and revenue over the past year. However, under the current circumstances, SparkLend still maintains ample ETH withdrawal liquidity, while Aave's WETH reserves on the mainnet, Arbitrum, Plasma, Mantle, and Base are frozen.