Spark has published a full overview of its risk framework for the Sky Agent Network, which operates under the same security-first principles that Sky Protocol has used for more than a decade. The framework describes how losses are absorbed, capital movements are limited and risks are mitigated at each layer, across three core components: Spark Savings, SparkLend and the Spark Liquidity Layer.
The publication of the risk framework demonstrates Spark’s approach to managing protocol security and user fund protection for its interconnected DeFi products. By imposing explicit restrictions on capital movements and loss absorption mechanisms, the framework outlines how the protocol manages counterparty and liquidity risks.
The Sky Agent Network represents an extension of Sky Protocol’s infrastructure, leveraging the established security architecture to support new functionality within the broader Sky ecosystem.
Sources: Sky Ecosystem
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