Key Takeaways:
Aave and Sky have announced a partnership to integrate new tokens USDS and sUSDS into the Aave platform. The collaboration aims to boost USDS adoption and increase Aave’s total value locked.

Decentralized applications Aave and Sky have teamed up to bridge the gap between decentralized finance (DeFi) and traditional finance with their project named Sky Aave Force, sharing seamless integrations between their products. Aave proposed on Aug. 28 to include Sky’s new token Sky Dollar (USDS) and Savings Sky Dollar (sUSDS) into their platform, upgrading the protocol’s stablecoin DAI and Savings DAI. This proposal, if approved, would grant USDS and sUSDS all the functionalities of DAI and sDAI within Aave, including their use as collateral, borrowing, and swapping through Paraswap. Additionally, Sky’s proposal suggests that the idle supply of sUSDS used as collateral on Aave will be eligible to earn Sky Savings Rate (SSR), enhancing USDS adoption post-launch. Users opting to use sUSDS as collateral will also qualify for a pre-farming airdrop of SPK, the token of Spark, the money market within the Sky ecosystem. Aave will introduce rewards on the sUSDS market and update their user interface to display SPK rewards. Sky also proposes the creation of a Direct Deposit Module (D3M) within Aave’s Lido-specific instance, enabling direct transactions of USDS tokens from Sky to an Aave lending pool, a move that is expected to boost USDS adoption and wstETH.
The Sky Aave Force initiative follows recent efforts by Aave and Sky to focus on integrating real-world assets (RWA) into the crypto space. Sky, the new brand of MakerDAO, introduced upgraded versions of its tokens SKY and USDS to enhance the governance and stability of the DAI stablecoin. Aave also presented a proposal for a new GHO Stability Module (GSM), leveraging BlackRock’s tokenized fund BUIDL’s shares to provide additional yield to stablecoin holders. The integration allows users to swap USD Coin (USDC) for Aave’s GHO, with the smart contract converting the USDC amount into BUIDL’s shares. This partnership could pave the way for further collaborations between Aave and BlackRock in the realm of real-world assets.
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