Spark Finance to Deprecate SparkLend on Gnosis Chain by September 14, 2026

Spark Finance has announced the impending deprecation of its SparkLend lending platform on Gnosis Chain, effective September 14, 2026. The decision follows persistently low usage and minimal revenue generated by the platform, prompting Spark to wind down its first cross-chain lending deployment. Users with outstanding loans on the Gnosis instance are advised to repay their debts before the cutoff date to avoid forced liquidation, which will occur once a governance spell is executed.

Launched in September 2023, SparkLend marked Spark Finance's initial expansion beyond the Ethereum blockchain. However, by early 2026, the protocol began limiting exposure by freezing new deposits and borrowings on Gnosis. To further accelerate the reduction of outstanding positions, Spark raised the reserve factor to 50% across all assets available on the Gnosis deployment, which includes WXDAI, sDAI, WETH, and USDC, among others.

The shutdown process will be governed by Sky governance, requiring an on-chain governance spell to activate the liquidation of undercollateralized positions. Spark has emphasized the importance of repaying loans and withdrawing collateral promptly, as automated liquidations could occur if market conditions change before users can close their positions. The lack of lending volume on Gnosis Chain has been cited as the primary reason for the decision, as it failed to generate sufficient revenue to justify the operational costs of maintaining the deployment. Spark Finance has indicated a willingness to reconsider its presence on Gnosis if market conditions improve significantly.

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Source: KLEA News