Founders of Sky and Aave, two leading decentralized finance (DeFi) protocols, announced the ‘Sky Aave Force’ proposal, a collaborative initiative to drive institutional use cases and foster mass adoption of DeFi.
Rune Christensen, co-founder of Sky (formerly Maker), and Stani Kulechov, founder of Aave, outlined a vision for creating a more inclusive and accessible financial system for everyone through decentralized finance.
The recent governance proposals submitted for consideration and approval in Sky and Aave Forum outline elements that are incorporated into ‘Sky Aave Force.’ The initiative harnesses both protocols' collective expertise, technology, and community support to elevate awareness of DeFi’s unique benefits for end users and establish it as a compelling alternative to traditional financial systems.
Rune Christensen, co-founder of Sky, the newly rebranded MakerDAO, said, “Now is the time for DeFi to scale. Years of successful, stable, and secure performance have shown that DeFi can bring unique benefits to end users while allowing them to remain in control. The ‘Sky Aave Force’ brings together the leader in DeFi saving with the leader in DeFi lending to help decentralized finance offer better solutions to a broader audience through collaboration across the DeFi ecosystem.”
Summing up this milestone announcement, Aave Labs Founder Stani Kulechov, added, “There is a renaissance happening in DeFi. With DeFi protocols becoming more decentralized, sustainable, and profitable, we have the opportunity to make DeFi more accessible and explore new use cases. While DeFi’s efficiency, transparency, and resilience are increasingly recognized, it remains inaccessible to most users. As DeFi leaders, we must work together to simplify the user experience, bridge the gap between TradFi and DeFi, and promote a broader understanding of DeFi.”
Together, Christensen and Kulechov will actively educate institutions and users about DeFi and its potential applications and collaborate on initiatives to raise awareness of its potential benefits.
Key Details Of The Proposals for Sky and Aave DAO Consideration
A key highlight of the proposals before the Aave DAO is the double-incentivized integration of sUSDS on the Aave V3 market, allowing users access to rewards. First, the proposals suggest implementing the listing of sUSDS on Aave by the launch day on September 18th with fees similar to USDC and USDT. From that day, the SKY-sUSDS converter would be available on the Aave Labs interface.
As part of the proposals submitted to the DAOs, a new Spark/Aave market would be created to facilitate seamless interactions between Spark and Aave. One of the most important interactions will be that borrowers in the Aave mainnet market will be able to participate in the SPK governance token airdrop. This exclusive reward will equal 50% of the rate distributed across all SparkLend.
Lastly, Sky would create a USDS D3M in the Lido market and allocate 100 million USDS to boost adoption. The allocation will be adjusted based on the market's performance. On the Aave Lab interface, the market would be named a joint Spark and Aave market.
About the Sky Protocol
Sky Protocol, formerly known as the Maker Protocol, is a decentralized protocol with the Sky stablecoin USDS at its core. The protocol features Sky tokens (USDS, SKY, DAI, MKR), the Sky Savings Rate (SSR), Sky Token Rewards (STRs), Activation and Sealed Activation Rewards, and more. It is managed by Sky’s decentralized community governance.
For more information about Sky Protocol, visit sky.money, Discord, or Twitter.
About Aave Labs
Aave Labs is the team behind the Aave Protocol and its user-friendly interface, Aave.com. Part of parent company Avara, Aave Labs is one of several technology contributors to the Aave Protocol, which was first launched in 2020 by Founder Stani Kulechov and is now decentralized and governed by the Aave DAO. Additionally, Aave Labs developed the decentralized, over-collateralized Aave-native stablecoin GHO, which is pegged to the USD. Launched in July 2023, GHO is designed as a stable store of value and aims to become a payment method for the Internet.
About the Aave Protocol
Aave is a non-custodial, open-sourced decentralized liquidity protocol that allows users to act as depositors and earn passive income, as well as borrow a wide range of digital assets without the need of third-party intermediaries. Core capabilities include risk mitigation features such as supply and borrow caps, and flash loans, which allow users to borrow and repay assets within the same blockchain transaction block. GHO is a decentralized, overcollateralized stablecoin that is native to the Aave Protocol. The Aave Protocol is fully governed by the Aave Decentralized Autonomous Organization (DAO). Visit Aave.com and https://governance.aave.com/ to learn more and take part in Aave Governance.