Leading DeFi giants Sky and Aave launch Sky Aave Force to boost sector growth Leading DeFi giants Sky and Aave launch Sky Aave Force to boost sector growth
Sky and Aave join forces to bridge DeFi and traditional finance.
2 min read
Updated: Sep. 3, 2024 at 10:20 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Leading DeFi protocols Aave and Sky (formerly MakerDAO) have partnered to launch Sky Aave Force, aiming to bridge the gap between decentralized finance and traditional financial systems.
In a statement on Sept. 3, the initiative was described as a crucial step toward creating a more resilient and aligned ecosystem, with goals of broader accessibility, increased adoption, and collaborative progress.
This collaboration unites two of the largest DeFi platforms to foster sector growth. According to DeFillama data, Aave is the second-largest DeFi protocol, with over $18 billion in total value locked (TVL).
On the other hand, Sky is known for issuing the DAI stablecoin, which is now rebranded as USDS. The DeFi lender has over $6 billion locked.
Rune Christensen, Sky’s co-founder, commented:
“Sky and Aave communities coming together for the shared benefit of all of DeFi – the biggest and best of savings deeply integrated with the biggest and best in borrow & lending.”
Collaboration details
The Sky Aave Force’s proposal involves integrating USDS and Savings USDS (sUSDS) into Aave V3, offering native token rewards, and establishing a new Spark.Fi/Aave market for seamless interactions and exclusive benefits.
Sky’s proposal also included provisions that sUSDS supplies on Aave V3 Main Market qualify for the SPK pre-farming airdrop program, offering 3.33 million SPK tokens monthly (50% of SparkLend). It stated:
“This program will help Sky to boost adoption of USDS after launch, and the incentives program will boost Aave’s TVL and revenue by attracting new borrowers.”
Additionally, the proposal recommends deploying a USDS D3M to the Aave Lido Market with an initial debt ceiling of $100 million to drive mass adoption. The plan envisions using this ceiling until market rates align, with highly liquid ETH and wstETH as collateral.
Sky’s proposal also reveals that Aave and Spark have agreed to split revenue equally from the sUSDS and USDS markets.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Aave is an open source and non-custodial protocol enabling the creation of money markets.
Maker
$1,688.15
Maker is a decentralized autonomous organization on the Ethereum blockchain seeking to minimize the price volatility of its own stable token — the Dai — against the IMF’s international currency basket SDR.
Dai
$0.99985
Dai (DAI) is a cryptocurrency token and operates on the Ethereum platform.
Maker is a Decentralized Autonomous Organization that creates and insures the dai stablecoin on the Ethereum blockchain.
Rune Christensen is Chief Executive Officer and Cofounder of MakerDAO.