Sky Aave Force Boosting Capital Efficiency Through Strategic Integration

September 3, 2024 · 11 min read

Edited by paul

Sky Aave Force Initiative Summary

The Sky Aave Force initiative proposes integrating sUSDS and USDS into Aave V3 Main Market and Lido Market, respectively.

Proposed Integrations

  • sUSDS Incentives Program: sUSDS will be added to Aave V3 Main Market to improve capital efficiency for lenders. The idle supply will earn the Sky Savings Rate (SSR).
  • USDS D3M to Lido Market: A D3M will be deployed to the Lido Market to boost the adoption of USDS and wstETH. A 100m initial debt ceiling is proposed.

Key Details

  • Revenue from sUSDS and USDS markets will be split 50/50 between Aave and Spark.
  • The Aave team will update their UI to display SPK rewards.
  • The SPK rewards program will start on the block that the market is onboarded into the Aave V3 Main Market.

Next Steps

Pending approval from the governance process, both proposals will be implemented at the next available opportunity after the USDS and sUSDS tokens launch on September 18th.

Reference Analyses Performed

the following is the analyses performed by the Analyst as part of this content.

1. Aave Labs Launches Sky Aave Force

Aave Labs has launched the Sky Aave Force initiative with Sky to boost DeFi adoption. According to @aave, this initiative aims to accelerate the next wave of DeFi adoption. @SkyEcosystem also announced that Sky Aave Force is gearing up for deployment. @StaniKulechov, the founder of Aave, tweeted that the DeFi Renaissance is taking off with the introduction of Sky Aave Force. @RuneKek, a prominent figure in the DeFi space, expressed his excitement about the initiative, stating that it will drive mass adoption and close the gap between DeFi and TradFi.
Relevant Tweets I found:

2. Sky and Aave collaborate to boost DeFi adoption with 'Sky Aave Force'

This content is about a collaboration between Sky and Aave protocols, aiming to boost DeFi adoption. Stani announced the 'Sky Aave Force' on X, and Spark is preparing to deploy USDS allocations and SPK token rewards on Aave. Aave Labs also introduced the 'Sky Aave Force' on X.
Referenced URLs ingested:

3. Sky and Aave partnership boosts DeFi innovation

The partnership between MakerDAO (now rebranded as Sky) and Aave signifies a pivotal moment in the DeFi landscape. As detailed in a CryptoSlate article, this rebranding is accompanied by the introduction of new tokens that aim to promote innovation in decentralized finance. The collaboration is designed to enhance the viability and accessibility of DeFi solutions, aligning both platforms' goals for further technological advancement.
Additionally, the potential impact of this partnership is amplified by Aave's ongoing development efforts, as highlighted by their plans to launch the Aave Network. This new blockchain aims to bolster the Aave ecosystem with advanced capabilities aimed at improving user experience and transaction efficiency, reinforcing the strategic synergy between Sky and Aave in pushing the boundaries of DeFi solutions. For further context, Bybit emphasizes the importance of this development in the overall DeFi market.
Sources: Sky and Aave collaboration crypto blockchain:

4. Aave and Sky partner to boost DeFi adoption

Summary of Sky Aave Force Partnership

Aave Labs has launched the Sky Aave Force initiative with Sky to boost DeFi adoption. This partnership aims to accelerate the next wave of DeFi adoption.

Key Points from Relevant Tweets

  • @aave: The Sky Aave Force initiative is designed to accelerate the next wave of DeFi adoption.
  • @SkyEcosystem: Sky Aave Force is gearing up for deployment.
  • @StaniKulechov: The DeFi Renaissance is taking off with the introduction of Sky Aave Force.
  • @RuneKek: The initiative will drive mass adoption and close the gap between DeFi and TradFi.
  • @sparkdotfi: Spark is preparing to deploy USDS allocations and SPK token rewards on Aave.

Impact on DeFi Landscape

The partnership between Sky and Aave signifies a pivotal moment in the DeFi landscape. The introduction of new tokens, such as USDS and SPK, aims to promote innovation in decentralized finance. The collaboration is designed to enhance the viability and accessibility of DeFi solutions, aligning both platforms' goals for further technological advancement.

Additional Context

Aave's ongoing development efforts, including the launch of the Aave Network, will bolster the Aave ecosystem with advanced capabilities aimed at improving user experience and transaction efficiency. This reinforces the strategic synergy between Sky and Aave in pushing the boundaries of DeFi solutions.

Sources

5. Spark Proposal for Integrations into Aave: sUSDS and USDS additions to Aave markets

Spark Proposal for Integrations into Aave
Summary: Phoenix Labs proposes the addition of sUSDS to Aave V3 Main Market and USDS to the Lido Market as a first step towards a deeper relationship between the two protocols. Aave protocol teams have agreed to split revenue from the sUSDS and USDS markets 50/50 with Spark.
Rationale: Aave is the largest lending market in DeFi with over 11b in TVL across multiple chains. This presents synergies between the protocols with USDS being the largest decentralized stablecoin. The proposal includes an sUSDS Incentives Program and USDS D3M to Lido Market.
  1. sUSDS Incentives Programs USDS is used as the asset in the main market to improve capital efficiency for lenders. The idle supply consistently earns the Sky Savings Rate (SSR). The following formula will be used to prevent USD stablecoin looping: sUSDS Supplies - Sum_i(Stablecoin_i Borrow Amount (in USD) / Stablecoin_i Liquidation Threshold). The Aave team has agreed to place rewards on the sUSDS market and will update their UI to display the SPK rewards.
  2. USDS D3M to Lido Market Aave has recently launched a Lido-specific instance of their V3 market 3. Phoenix Labs recommends deploying a D3M to this market to boost the adoption of USDS and wstETH. A 100m initial debt ceiling is proposed with the expectation that it will be used until the rates align with the broader market.
Next Steps: Pending approval from the governance process, both proposals will be implemented at the next available opportunity after the USDS and sUSDS tokens launch on September 18th. The SPK rewards program will start on the block that the market is onboarded into the Aave V3 Main Market.
Referenced URLs ingested: