The founders of Sky and Aave , two DeFi protocols, have announced the Sky Aave Force initiative, aimed at promoting institutional use cases and increasing the adoption of DeFi. Representatives of both parties outlined their goal to create a more accessible financial system through decentralised technologies.

Governance proposals submitted to the Sky and Aave forums detail components of the Sky Aave Force. The initiative draws on the expertise and resources of both protocols to raise awareness of DeFi's benefits and position it as a viable alternative to traditional financial systems. The proposals include the double-incentivized integration of sUSDS on the Aave V3 market, with an expected launch date of 18 September 2024.

The plan involves listing sUSDS with fees similar to those for USDC and USDT, along with the availability of a SKY-sUSDS converter on the Aave Labs interface. Additionally, a Spark/Aave market is proposed, enabling borrowers in Aave's mainnet market to participate in a governance token airdrop for SPK. Sky also plans to introduce a USDS D3M in the Lido market, with an initial allocation of 100 million USDS to support adoption, which will be adjusted based on market conditions.

About the companies Sky Protocol, formerly the Maker Protocol, is a decentralised system centred around the Sky stablecoin USDS. It includes a range of tokens and rewards, governed by a decentralised community. Aave Labs, a key contributor to the Aave Protocol, launched the over-collateralized stablecoin GHO in July 2023.

Aave operates as a decentralised liquidity protocol, offering users the ability to deposit and borrow digital assets without intermediaries. The protocol is governed by the Aave DAO. .