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Gnosis Chain Deprecation

The deprecation was not an immediate parameter flip. Sky Governance first announced the intent in January 2026, froze the markets at the end of that month, published a dedicated deprecation notice in August, and completed the wind-down with the September 10, 2026 Spark spell. Users had roughly eight months of public notice to close or move their positions.

What this means for you

If you supplied assets, you can withdraw them at any time from the Markets or My Portfolio pages. The reserves accrued on the Gnosis market were deliberately left in place rather than swept, so they remain available to cover any residual bad debt and every supplier can withdraw.

If you still had debt when the spell executed, your position became liquidatable immediately. The final spell reduced the maximum loan-to-value of every collateral asset to 0% and the liquidation threshold to 0.01%, so every remaining borrow position has a health factor far below 1 and is closed by third-party liquidators with a full close factor. This is why Sky Governance asked borrowers to repay before the deprecation date. Once a position has been liquidated, any collateral left over can be withdrawn. See Liquidations.

In the Spark App, the Gnosis Markets, My Portfolio and market details pages show a deprecation notice linking to this page, all Gnosis markets are listed in the Frozen section, and each market details page shows the asset as one that cannot be supplied, borrowed or used as collateral. Other Spark products on Gnosis Chain are not affected by this change.

What changed

The deprecation was carried out in two governance steps, each proposed on the Sky forum before being included in a Spark spell:

  1. Phase 1, January 29, 2026 spell. Every SparkLend reserve on Gnosis was frozen and its reserve factor raised to 50%. From that point no new supplying or borrowing was possible, while withdrawals and repayments continued to work so users could close their positions.
  2. Full deprecation, September 10, 2026 spell. For the five collateral assets (WXDAI, WETH, wstETH, GNO and sDAI) the spell set the loan-to-value to 0%, the liquidation threshold to 0.01%, removed WETH and wstETH from the ETH E-Mode category, and set the liquidation protocol fee to 0%. USDC, USDT, EURe and USDC.e were never enabled as collateral and were left unchanged.

The liquidation threshold was set to 0.01% rather than 0% because the protocol does not allow a threshold of zero while a reserve still has suppliers. In the words of the proposal, liquidation has to happen before a threshold can reach zero, not as a result of it. This is the terminal phase of the deprecation; no further parameter changes are planned.

Timeline

DateStepSource
January 15, 2026Sky Governance proposal to begin deprecating the market: freeze all reserves and raise reserve factors to 50% ("Deprecate Market Phase 1").January 29, 2026 Proposed Changes
January 29, 2026Phase 1 executed. All Gnosis reserves frozen; no new supplying or borrowing.January 29, 2026 Proposed Changes
August 18, 2026Dedicated notice of planned deprecation published, naming the target date and urging borrowers to repay outstanding debt before it.Notice of Planned Deprecation: SparkLend on Gnosis Chain
August 31, 2026Full deprecation proposed as part of the September 10, 2026 spell, with the exact parameter changes and expected impact on remaining positions.September 10, 2026 Proposed Changes
September 2026September 10, 2026 Spark spell executed through the Sky executive vote process, completing the deprecation.September 10, 2026 Proposed Changes

For background on how Spark spells are proposed and executed, see Governance.