"The pattern of the parent project determines the ceiling of the sub-project Sky & Spark" I just saw that Sky announced a buyback of nearly 3 million USD for $sky. The reason I am optimistic about Spark having great potential is largely due to the parent project Sky. Today, I will explain why. 📌 As usual, comment #spark and I will reply with bonus points. › ••••••••• ‹ Sky's annual revenue has reached 320 million USD, with a market cap of 2.5 billion USD. This market cap is considered undervalued in DeFi, and with the project team continuously buying back, $Sky has been performing well recently. In May, they bought back 7.75 million USD worth of $SKY, and at the beginning of June, they continued to buy heavily for several days. Rune alone used staking rewards to buy back over 60 million $SKY, spending nearly 5 million USD in total. These bought-back coins are then restaked, continuously locking them up. This cycle of staking + buyback + restaking keeps compressing the circulating supply. This logic also supports the fundamental basis for the positive cycle of USDS. #Spark has grown into an on-chain capital allocation engine under this framework. @sparkdotfi initially started as an experimental subDAO incubated within the Sky ecosystem, but later became an independent execution hub for capital management. Its role is not traditional lending but directly managing the massive capital pool held by Sky, performing yield management and capital allocation across the entire chain. Currently, Spark's funds are mainly directed towards three areas: One part is invested in DeFi, such as their own SparkLend, Morpho, Pendle, and other mainstream protocols. Another part flows into CeFi and RWA, like Maple, Centrifuge, and BlackRock Treasury, which focus on real-world yield combinations. A portion is also engaged in Basis Trade during bull markets, such as high-leverage arbitrage models like Ethena. In a bull market, risks can be taken for high returns; in a bear market, it returns to CeFi and government bond spreads for stability. Remember how Sky has been continuously buying back? These buyback funds are all restaked, generating stable daily output of $USDS, which is used to continuously buy back $SKY, restake, forming a snowball effect. The pattern of the parent project opens up, focusing on credit expansion + capital allocation, cycling and growing in DeFi. As the execution layer for capital allocation, Spark will only continue to grow in scale as Sky's asset size increases, becoming the first truly decent on-chain asset management system in DeFi. This is also why I am optimistic about Spark! Not only because of the support from @cookiedotfun @cookiedotfuncn's rankings, but also because I am looking forward to Spark's own points airdrop. The possible window for issuing tokens is either at the end of this month or next month, so if you haven't stored USDS, you should hurry. At the beginning of the month, I borrowed USDS by staking the $eth I bought for 2500, earning interest and also earning airdrop points, getting three benefits at once currently.~ #cookie #spark #sky #snaps You can follow the big names on the list: @lubijiaocheng @0xjiaming @egyptk6 @rob1in_kcex @cryptolisa @bubblebing_666 @moyu_777 @captain_kent @jing_0517doge @0xdogacan @chubaiweb3 @Zhaogongming_ @jiao_newlife