A new chapter in Sky Ecosystem: Spark launch and multi-chain DeFi revolution

Author: Rune, Sky Lianchuang Source: X, @RuneKek Translation: Shan Oppa, Golden Finance

The launch of Sky Protocol only happened 8 days ago, but it already feels like we are entering a new era. On September 18, the Sky protocol underwent a token upgrade: USDS, SKY and feature updates: the USDS savings rate and USDS token reward functions were launched, and users experienced the Sky ecosystem for the first time. Several front-end operators provide these capabilities, including sky.money, summer.fi and defisaver.com.

In these 8 days, the new token has seen significant adoption. The supply of USDS has exceeded 500 million (570M), and the net inflow has reached 200 million USDS.

USDS and SKY have been integrated into the main front-ends, wallets and applications of the Ethereum ecosystem, and there has been widespread support for this upgrade from the community and media.

However, this is just the beginning. New feature releases and major integrations will continue to roll out over the next few months. The decentralized Sky ecosystem has been in development on a number of projects over the past two years, and now everything is ready for rapid launch.

The following is an overview of some of the new features that have been approved or proposed to Sky governance, arranged in the order of expected launch:

Sky Aave Force Flagship Integration

Sky Aave Force is a landmark integration where two of the world’s largest DeFi giants work together to drive the DeFi renaissance One: the USDS market on Aave, which combines all reward mechanisms in the two protocols.

With advanced integration of USDS and USDS Savings Rates, the Aave USDS Market will permanently overlay the USDS Savings Rate with the regular Aave Market Rate. Additionally, unique launch rewards from both ecosystems will also be in effect: USDS depositors will receive SPK airdrops on Aave, while Aave governance will also provide an incentive boost from its side. The Aave USDS Market will be a simple and secure option for users to earn the best stablecoin rewards in DeFi.

Shortly after the Aave USDS market goes live, Sky will begin allocating USDS collateral to the Aave Lido market via Spark Star to increase liquidity and reduce borrowing in the Aave Lido market The cost of borrowing money.

USDS and SKY are online on Solana, accompanied by SKY incentives

Next is the highly anticipated The launch of Sky on Solana was welcomed by the Solana community, as Solana’s DeFi ecosystem currently lacks a decentralized stablecoin with built-in rewards.

USDS and SKY will be cross-chain bridged through Wormhole, and through SKY incentives for liquidity providers, Solana users will have a USDS/SKY ratio close to 1:1 USDC Liquidity. Up to 2 million SKY tokens will be available for Solana’s DeFi incentive program each week. This will enable DeFi protocols on Solana to implement advanced USDS savings rate integration similar to Aave and make USDS the best asset to earn DeFi rewards on Solana.

This will build early momentum for a strong launch of Solana SkyLink, where all native Sky features will be available on Solana.

SKY early bird airdrop

Users who registered on Sky.money before the Sky protocol went online Currently earning double SKY rewards on its USDS through the early bird program. These additional double rewards will be distributed via airdrops. If you signed up for the Early Bird program and qualify, you still have until October 16 to take advantage of double rewards.

SKY Seal module

SKY Seal module is the first one launched after the launch of Sky protocol Main core functions. The SKY Seal module allows eligible SKY and MKR holders to seal their SKY and MKR, which locks the assets behind a 5% exit fee in exchange for the following benefits:

• USDS rewards

• Use SKY and MKR as collateral The ability to generate USDS from products

• You can also choose to receive other rewards in the future, such as SPK.

However, the Seal module may not be available in some countries.

A combination of attractive rewards and exit fees incentivizes Seal module users to participate in Sky governance over the long term.

The exit fee is temporarily set at 5% when the Seal module is launched, increasing by 1% every 6 months. After 5 years, the exit fee will be fixed at 15% and will not change. The initial discounted exit fee is intended to provide a lighter penalty for Seal module users who change their minds early on in order to reduce risk under this new concept.

Seal module users can also choose to receive SPK rewards once Spark is launched (users need to choose between USDS and SPK). The reward distribution for Seal module users is: 25% of the total net revenue of the Sky protocol, and 15% of the total SPK issuance.

SkyLink release on L2

SkyLink will be released on L2, making the Sky protocol Becoming a native multi-chain protocol for the first time. SkyLink is a custom cross-chain bridge capable of natively deploying most Sky functionality onto the target chain it connects to. Features include:

• Native USDS, SKY and sUSDS tokens

• 1:1 liquidity access to USDS and USDC

• Native access to USDS savings rate and USDS <> sUSDS conversion function

• Native USDS token rewards, including SKY tokens, Chronicle Points and SPK tokens

• Native activation rewards (explained below)

Spark's full launch

The pinnacle of Sky's launch is the full release of Spark, the first fully Independent Sky Star. From the beginning, Spark has been a multi-chain presence via SkyLink, and SPK token rewards will be live on both Ethereum mainnet and L2 for USDS.

After Spark is released, Spark will begin to earn money through the difference between the base rate (the cost of Spark generating USDS) and the income Spark earns through collateral allocation. Generate revenue from RWA assets such as Spark Lend users, Tokenization Grand Prix participants, and distributions to Morpho and Aave through D3M. A distribution system will also come online, providing the Spark ecosystem with great flexibility in the distribution of collateral on Ethereum, L2, and other chains.

These features will transfer a significant portion of the net surplus revenue currently fully earned by the Sky protocol to Spark, laying the foundation for Spark's increased value creation capabilities. Spark is well-positioned to take advantage of the dynamic opportunities emerging during the DeFi renaissance. The net surplus revenue earned by the Spark protocol will be used to accumulate SPK/SKY liquidity, similar to how the Smart Burn Engine accumulates SKY/USDS liquidity for Sky.

SKY and SPK activation function

With the full release of Spark, SKY and SPK generation The coin will receive activation functionality and will be launched simultaneously on multiple chains.

• SKY Activation: Allows SKY holders to earn SPK Rewards without paying exit fees or locking up. SKY activated users will be allocated 15% of all SPK issuance.

• SPK Activation: Allows SPK holders to earn SKY rewards, similar to SKY activation. SPK activated users will be allocated 80 million SKY tokens per year.

Solana SkyLink and other SkyLink deployments

Spark launch Later, SkyLink's complete multi-chain system will be launched on Solana and other major Ethereum L2. This also includes integrating the allocation system into major DeFi lending pools and protocols on all supported blockchains, significantly increasing DeFi liquidity, allowing Spark to generate more net surplus revenue, and enabling Sky to increase base rates, This provides USDS holders with better savings interest rates.

2025 and beyond

The above announcement is the next major step in what has been announced, but this Of course it won't be the end. A core pillar of Sky scalability is Star model parallelization within the ecosystem. So while Sky continues to roll out more innovative features, Spark will also begin to develop its own long-term roadmap, including new features, applications and adoption strategies.

Eventually, the next Star will come online after Spark, and it will also establish its own innovation and adoption roadmap, creating another parallelization and decentralization innovation and growth path.

From here, Sky will continue to incubate and launch more Stars, while developing core technologies to improve the efficiency, speed and efficiency of Stars through AI governance and data tools. security, and increase their market accessibility by extending SkyLink to more blockchains.

Sky is a decentralized ecosystem with unlimited expansion potential.