Spark and RedStone partner on campaign to reward DeFi users with approximately $6 million worth of RED tokens

Spark, a subDAO that is part of the Sky (formerly MakerDAO) ecosystem, has launched a new initiative to "reward user participation." The program, called Spark Rewards, will offer weekly token payouts to "users who take specified onchain actions that contribute to the growth of the Spark ecosystem."

The first campaign will be run in collaboration with oracle provider RedStone. As part of the initiative, RedStone will integrate price feeds to Spark’s existing oracle system maintained by Chronicle and Chainlink. Spark, a decentralized lending platform, notes that "most DeFi protocols only use one oracle provider."

Participants in the so-called "RED Season" program will supply cbBTC, a wrapped version of bitcoin created by Coinbase, to the SparkLend smart contract on the Ethereum mainnet in exchange for RedStone’s recently launched RED token. Approximately 11.5 million RED tokens worth about $6 million are expected to be distributed over the campaign.

"Spark Rewards is all about unlocking synergies across DeFi," Sam MacPherson, CEO and co-founder of Phoenix Labs, the RD company behind Spark, said in a statement. "By empowering users to actively contribute, we’re strengthening the entire ecosystem to create a more resilient, connected, and user-aligned DeFi landscape that truly benefits everyone involved."

Spark has attracted over $2.1 billion liquidity and generates $130 million in annualized revenue. Last year, the protocol announced a $1 billion Tokenization Grand Prix competition to onboard real-world assets into DeFi by offering capital to selected participants, including giant asset managers Apollo and BlackRock and crypto-natives like Superstate.

RedStone was recently tapped by Securitize as its primary oracle for tokenized funds issued by BlackRock, Apollo and other financial institutions.