Spark Finance Deprecates Gnosis Chain Lending Deployment Amid Low Utilization

Spark Finance is shutting down its SparkLend deployment on Gnosis Chain by September 14, 2026. The decision comes after a year of low utilization and negligible revenue from this specific instance.

The protocol launched SparkLend on Gnosis in September 2023, but it failed to generate the same level of lending volume as its Ethereum counterpart. Spark Finance has stated that maintaining exposure to a low-liquidity environment without sufficient reward is no longer viable.

Existing positions will remain active until the deprecation date, but users are advised to repay their loans and withdraw collateral before then. Liquidation penalties can reduce the net value of recovered collateral, making it essential for borrowers to act quickly.