Sky and Aave Unite to Forge the Future of DeFi and Traditional Finance

In a groundbreaking partnership, DeFi giants Aave and Sky (formerly MakerDAO) have joined forces to launch the Sky Aave Force, a strategic initiative aimed at bridging the worlds of decentralized finance (DeFi) and traditional finance.

Announced on September 3, this collaboration is set to pave the way for a more inclusive and sustainable financial ecosystem, focusing on expanding accessibility, driving adoption, and fostering collaborative growth.

This alliance brings together two of DeFi’s powerhouses. Aave, currently ranked as the second-largest DeFi protocol with over $18 billion in Total Value Locked (TVL) according to DeFillama, joins hands with Sky, the issuer of the newly rebranded USDS (formerly DAI) stablecoin, which boasts more than $6 billion in locked assets.

The Sky Aave Force proposal outlines several key initiatives:

USDS and sUSDS Integration: USDS and Savings USDS (sUSDS) will be integrated into Aave V3, with token rewards and a new Spark.Fi/Aave marketplace designed for smooth interoperability and exclusive user benefits.

SPK Pre-Distribution Program: The proposal introduces the sUSDS offering in the main Aave V3 marketplace, allocating 3.33 million SPK tokens monthly (50% via SparkLend).

USDS D3M Deployment: The plan includes deploying USDS D3M on the Aave Lido marketplace, starting with a $100 million debt ceiling, leveraging highly liquid ETH and wstETH as collateral, and incentivizing mass adoption.

Additionally, the proposal reveals that Aave and Spark have agreed to equally share the revenues generated from the sUSDS and USDS markets, underscoring the collaborative spirit of this partnership.

This strategic alliance marks a significant milestone in the evolution of DeFi, setting the stage for a future where decentralized and traditional finance work hand in hand. $AAVE

#AaveProtocol #USDataImpact #thaksbuddy