DeFi is entering its 2008 moment phase, where weak risk systems get wiped out and capital flows to safer protocols. In a single day, over $10B TVL exited DeFi, but liquidity rotated. @sparkdotfi saw $134M outflows followed by $257M inflows, driving about 10% TVL growth. $ETH utilization on Spark dropped from 90% to 76%, signaling fresh liquidity, improved stability, and capital inflow. Why Spark survived: > Removed rsETH and low usage assets in January > Conservative collateral framework > Rate limits and borrow caps controlling capital velocity > Median oracle design > Controlled looping limited to ETH and wstETH > Focus on deep ETH liquidity and stability Still generating $27.8M annualized revenue, down from an $80M peak, without expanding risk. Spark is built on risk discipline over revenue optimization, which is where it outperforms Aave. DeFi is not broken, the incentives are.