yield-SparkDAO

Demo

About

The problem it solves SparkYDS DAO is a yield-to-governance protocol where every DAI deposited is used 1:1 as backing in Spark, earning real on-chain yield.
Instead of sending this yield to users, the system donates it directly to the DAO Treasury through Octant’s Yield Donating Strategy (YDS). Users deposit DAI into a YDS vault that supplies liquidity to the Spark Protocol.
Instead of earning individual interest, all realized yield is donated to a DonationVault.
At the end of each epoch, the vault issues claimable governance tokens ($vDON) via Merkl distribution based on each depositor’s contribution. Holders of $vDON gain voting power on Snapshot, where they decide how future yield will be allocated — for example, between Grants, Treasury, or Liquidity Incentives. These governance results are executed on-chain by a DAO Treasury, creating a self-sustaining loop where: Yield → Donation → Governance → Policy → Next Yield In short: Deposited DAI → Spark Yield → DAO Treasury → Community Voting → Funded Projects → Ecosystem Growth. The yield funds public goods, and the voters guiding those decisions are the same depositors who powered the yield in the first place. 
Excalidraw link: https://excalidraw.com/#json=zBndvfiRrKEZ6pbOncSED,CVuZI79vx4pIHgjuBJ_QkQ

How it's made

Challenges we ran into Donation accounting logic Tracking profit vs. principal required preventing donation share minting from distorting user PPS (price-per-share). I have implemented a buffer mechanism that mints donation shares only after the report cycle finalizes, matching Octant’s “profit-as-donation” design.