Sky and Aave Join Forces to Bridge DeFi and Traditional Finance

Leading DeFi protocols Aave and Sky (formerly MakerDAO) have teamed up to launch the Sky Aave Force, aiming to bridge the gap between decentralized finance and traditional financial systems. In a statement on September 3, the initiative was described as a major step towards creating a more resilient and aligned ecosystem with the goals of greater accessibility, adoption, and shared progress.

The collaboration brings together two of the largest DeFi platforms to help drive the growth of the sector. According to DeFillama data, Aave is the second-largest DeFi protocol with over $18 billion in TVL. Sky, on the other hand, is known for issuing the DAI stablecoin, now rebranded as USDS. The DeFi lender has over $6 billion locked in it. Sky’s Aave Force proposal includes the integration of USDS and Savings USDS (sUSDS) into Aave V3, offering native token rewards and creating a new Spark.Fi/Aave marketplace for seamless interoperability and exclusive benefits.

Sky’s proposal also includes provisions for sUSDS offerings on the Aave V3 main market to be eligible for the SPK pre-airdrop program, offering 3.33 million SPK tokens monthly (50% SparkLend). Additionally, the proposal recommends deploying USDS D3M on the Aave Lido market with an initial debt ceiling of $100 million to incentivize mass adoption. The plan calls for this ceiling to be used until market rates converge, with highly liquid ETH and wstETH as collateral. Sky’s proposal also shows that Aave and Spark have agreed to split revenue equally from the sUSDS and USDS markets.

Image: Binance Academy