SparkLend has expanded its lending capabilities, allowing users to utilize wrapped ETH (weETH) as collateral for borrowing various assets, including stablecoins. This update follows rising demand for Lido Finance's wrapped staked ETH (wstETH), which has led to governance-approved changes enabling users to supply up to 2 million wstETH and borrow up to 1 million wstETH. Additionally, the Spark Liquidity Layer has integrated support for Ethena Labs' USDe and sUSDe tokens, with up to $1.1 billion allocated to enhance yield for Savings USDS holders. Coinshift has also partnered with Lido Finance, offering wstETH as collateral for lending against wUSDL and USDC, significantly reducing borrowing costs from 12-33% to under 5%. These developments reflect a growing trend in decentralized finance (DeFi) towards optimizing lending practices and enhancing liquidity across platforms.