Leading DeFi giants Sky and Aave launch Sky Aave Force to boost sector growth

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.

The post Leading DeFi giants Sky and Aave launch Sky Aave Force to boost sector growth appeared first on CryptoSlate.