Leading DeFi protocols Aave and Sky have joined forces to launch Sky Aave Force, a partnership aimed at bridging the gap between decentralized finance and traditional financial systems. This collaboration, announced on Sept. 3, is seen as a crucial step towards creating a more resilient and aligned ecosystem in the DeFi space. The initiative is focused on increasing accessibility, adoption, and fostering collaborative progress within the industry.
Aave, currently the second-largest DeFi protocol with over $18 billion in total value locked (TVL), is teaming up with Sky, known for issuing the DAI stablecoin now rebranded as USDS, which has over $6 billion locked. The partnership between these two major DeFi players marks a significant move towards sector growth and development within the decentralized finance space.
Rune Christensen, co-founder of Sky, expressed optimism about the collaboration, stating that the coming together of the Sky and Aave communities will benefit the entire DeFi ecosystem. The partnership aims to combine the strengths of savings and borrowing/lending services offered by both platforms to create a more comprehensive and integrated DeFi experience for users.
The collaboration details of the Sky Aave Force proposal include integrating USDS and sUSDS into Aave V3, offering native token rewards, and establishing a new Spark.Fi/Aave market for seamless interactions and exclusive benefits. The proposal also includes provisions for sUSDS supplies on Aave V3 Main Market to qualify for the SPK pre-farming airdrop program, offering 3.33 million SPK tokens monthly to boost adoption of USDS and attract new borrowers.
Moreover, the proposal recommends deploying a USDS D3M to the Aave Lido Market with an initial debt ceiling of $100 million to drive mass adoption. This strategic move is aimed at aligning market rates and using highly liquid ETH and wstETH as collateral. The revenue from the sUSDS and USDS markets will be split equally between Aave and Spark, indicating a shared commitment to success and growth in the DeFi space.
In conclusion, the partnership between Aave and Sky to launch Sky Aave Force is a significant development in the DeFi industry, marking a collaborative effort to bridge the gap between traditional finance and decentralized finance systems. The initiative aims to enhance accessibility, adoption, and collaboration within the ecosystem, leveraging the strengths of both platforms to create a more resilient and integrated DeFi experience for users. With a focus on offering native token rewards, establishing new markets, and driving mass adoption, the collaboration between Aave and Sky is set to have a positive impact on the growth and development of the decentralized finance space.
