Aave Labs and Sky (formerly MakerDAO) have launched Sky Aave Force, a coordinated initiative designed by Rune Christensen and Stani Kulechov to tighten the integration between decentralized finance (DeFi) and traditional finance (TradFi). The effort is framed as a strategic partnership between two of the largest DeFi protocols, combining Aave’s lending infrastructure with Sky’s new USDS stablecoin system to make DeFi products more accessible to both retail users and institutions. Governance proposals have been submitted to both the Sky and Aave communities to formalize the collaboration and its specific mechanisms. Technically, the initiative centers on integrating USDS and Savings USDS (sUSDS) into the Aave V3 markets, including a double-incentivized listing of sUSDS on Aave’s main market. sUSDS suppliers on Aave are slated to receive native SPK governance token rewards via a pre-farming airdrop distributing about 3.33 million SPK per month, alongside Aave’s own incentive programs. The plan also includes a new joint Spark.Fi/Aave market for smoother interaction between the two protocols and a USDS Direct Deposit Module (D3M) on the Aave Lido market with up to $100 million in USDS liquidity to deepen markets and attract borrowers. Strategically, Sky Aave Force is positioned as a way to demonstrate that large DeFi protocols can cooperate on shared liquidity, incentives, and institutional on-ramps rather than competing in isolation. By aligning revenue-sharing between Sky and Aave on USDS and sUSDS markets and by jointly educating institutions about DeFi use cases, the founders aim to grow overall sector liquidity, improve yields and borrowing conditions, and present DeFi as a more mature alternative or complement to traditional financial rails. If successful, the model could serve as a template for future cross-protocol alliances seeking larger institutional participation and more stable, revenue-generating DeFi markets.

AI-generated background, compiled from web sources — not editorial content.

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