Spark October 22 Spell Seeks 100M sUSDS Bridge And WETH Rate Cut

The Spark October 22 spell would move 100 million sUSDS to Arbitrum, because the pool that sells it there is running down. PhoenixLabs posted the six-item proposal on the Sky forum on October 9, 2026, as the forum post shows. Voting starts with an SPK Snapshot poll on October 12.

The six proposed changes as listed at the top of the PhoenixLabs forum post.

Why the Spark October 22 spell targets Arbitrum

Spark's Arbitrum PSM3 sells sUSDS in exchange for USDC and USDS. It held 57,993,876 sUSDS on September 16 and 32,608,532.69 on October 8. Users bought a net 1.15 million a day over those 22 days, though the balance rose by about 4.5 million in the last four.

At the average pace the remaining stock lasts about four weeks. That would put the shortfall near the time the spell executes. A top-up can only be made through a spell, so Item 1 bridges the coins from the Ethereum ALM Proxy.

Rate changes in the Spark October 22 spell

SparkLend would cut slope 2 on its WETH interest rate model from 75% to 30%. The author says the old figure makes borrowing above the 90% kink punishing for people looping staked ETH. Rates below the kink stay as they are.

A separate item aligns PYUSD, RLUSD and USDG on one curve. Optimal utilisation would be 80%, the base rate SSR plus 0.20%, slope 1 0.20% and slope 2 15%. RLUSD borrows at 3.90% and USDG at 3.73% today, below the Sky Base Rate of 3.93%, so liquidity supplied there earns less than it costs. The kink for those markets moves from 95% to 80%.

Why the Base Rate matters

The Sky Base Rate is Spark's reference cost of capital. Atlas defines it as the Sky Savings Rate plus 0.20%, and the post says it currently stands at 3.93%. When a market borrows below that line, the liquidity layer loses money by lending into it. The new common curve starts at the Base Rate at zero utilisation, which removes that gap on the three stablecoin markets.

Treasury lines

Spark Treasury would send 865,000 USDS to the Spark Foundation and 45,000 USDS to the Spark Assets Foundation as November grants. It would also move 341,970 USDS to a buyback executor, which buys SPK over 90 days and returns the tokens to the SubDAO Proxy. A final item claims accrued SparkLend reserves and splits them between the liquidity layer and the operations multisig.

Timeline

The SPK Snapshot poll for Item 1 opens October 12 and closes October 15. After that the Spark October 22 spell goes up for the Sky executive vote on its namesake date. Execution comes on or after about October 26, subject to office hours, the vote passing and the GSM pause delay. The bridge item settles on Arbitrum when the retryable ticket redeems, normally within minutes.

The post lists audits by ChainSecurity and Cantina for the ALM controller, the Arbitrum token bridge and SparkLend Advanced. Earlier TOCE coverage of the same stablecoin market is in the USD1 supply report. This summarizes a governance proposal and is not investment advice.