Spark, a DeFi Powerhouse, Puts Crypto App Plans on Hold to Concentrate on Institutional Infrastructure

Decentralized finance giant Spark has put its plans for a mobile app on the backburner for the time being. In an interview with CoinDesk at Devconnect Buenos Aires, Sam MacPherson, CEO of Phoenix Labs, the company behind the Spark protocol, explained that the decision was made after an internal discussion. 'Our strength lies in the DeFi-native crypto space, and we don't specialize in building consumer apps, which is an extremely competitive field,' MacPherson stated. With over $9 billion in total value locked, according to DeFiLlama, Phoenix Labs is focusing on its core competencies. 'If we were to enter the consumer app space, we'd need a clear edge, and I think projects often get distracted by trying to do too many things at once,' MacPherson said. 'So, we're doubling down on what we do best: providing liquid infrastructure within DeFi.' The protocol will now prioritize 'liquidity infrastructure and deals', such as its recent $1 billion investment in PYUSD with PayPal, indicating a focus on institutional use cases over retail-friendly solutions. When asked if the mobile app had been canceled or merely delayed, MacPherson replied that it's 'on pause for now', adding that 'things can change, but it's about seizing opportunities, and it's just not the right time for us.' MacPherson's comments come shortly after DeFi giant Aave launched a retail yield app. 'It's an exciting development, but as I said, it's a competitive environment. I wish them the best of luck,' MacPherson said when asked about the launch.