Wallet Shifts 150 Million USDT From Aave to Spark Savings

A single Ethereum wallet shifted 150 million $USDT from Aave V3 into Spark Savings in two transfers on Oct. 5 and 6, ET, taking cash out of the lending pool as its borrowing rates reached double digits.

Ethereum transaction records show a 50 million $USDT withdrawal followed minutes later by a Spark Savings deposit. The same address repeated the move with 100 million $USDT the following evening. Aave’s reserve-update event in that withdrawal recorded a variable borrowing APR of about 12.53%.

By Oct. 8, Aave’s reserve dashboard showed borrowing costs had eased to a 4.49% variable APY, with 93.74% utilization and $169.54 million in available liquidity against $2.71 billion supplied. For lenders, the available cash—not the total supplied—is the pool’s immediate capacity to meet withdrawals before repayments or new deposits replenish it.

The reserve’s interest-rate model showed an optimal utilization level of 94%. With almost all supplied $USDT already borrowed, large withdrawals leave less cash for other lenders to redeem and make borrowing more expensive. APR and APY are different measures: APY includes compounding.

Savings Vault Draws the Deposits

The destination was Spark’s $USDT savings vault, rather than a direct deposit into SparkLend. The 100 million $USDT deposit transaction minted spUSDT vault shares to the withdrawing wallet.

Spark Savings deploys assets through the Spark Liquidity Layer, with savings rates managed by Spark governance, according to its documentation. Its depositor yield is distinct from the rate borrowers pay in SparkLend.

Spark announced a 3.75% $USDT savings APY on Oct. 5, saying around $450 million was already deposited. Its $USDT savings dashboard showed $610.5 million in total value locked on Oct. 8 and the same 3.75% APY.

The wallet retained approximately 101.95 million aEthUSDT, Aave’s $USDT deposit token, according to its Etherscan holdings.