Sky launches executive vote to propose adjustments to savings rate, stabilization fee and more

by
Alyssa Davidson

Published: Nov 29, 2024 10:30 AM Updated: Nov 29, 2024 10:20 AM

by well

Correction and fact check date: November 29, 2024, 10:30 AM

We sometimes use automatic translation plugins to improve your local language experience. The automatic translation may not be accurate, so please read the original text for accurate information.

Sky, a decentralized blockchain protocol, announced the launch of its latest Sky Executive Vote. Proposed changes to the Sky Protocol approved by Sky Ecosystem Governance will take effect 16 hours after voting ends. These updates are designed to improve the functionality of the protocol and optimize the user experience.

The proposal outlines several key adjustments. The savings rate will increase to 9.5%, and the Dai Savings Rate (DSR) will be adjusted to 8.5%. Also includes changes to stability fee parameters. For Ethereum-based collateral, the ETH-A stability fee will increase to 9.25%, ETH-B to 9.75%, and ETH-C to 9%. For Wrapped Stake Ethereum (WSTETH), the WSTETH-A stability fee increases to 10.25% and WSTETH-B to 10%. Stability fees for Wrapped Bitcoin (WBTC) will also change, increasing to 12.25% for WBTC-A, 12.75% for WBTC-B, and 12% for WBTC-C.

Additionally, the proposal includes adjustments to the Aave Lido Market USDS Direct Deposit Module (DDM) parameters, increasing the maximum debt limit to 200 million USDS. Also on the ballot is the Spark Proxy Spell, which, if passed, will affect users of SparkLend and Spark’s Morpho Vault. Other updates include changes to ALLOCATOR-SPARK-A DC-IAM parameters, increased surplus buffer upper limit, and extended GSM pause delay.

By voting in favor of this proposal, Sky has confirmed that the MKR/SKY token will be consistent with the actions described. GSM pause delays ensure that any approved changes are only applied after a 16-hour review period, allowing for governance oversight. This governance initiative reflects Sky’s commitment to improving the ecosystem while addressing the dynamic needs of the community.

MakerDAO rebrands to Sky

Sky, formerly known as MakerDAO, is a lending protocol designed to provide stability to the cryptocurrency economy through an innovative dual-token system. The system consists of DAI, a collateral-backed stablecoin that ensures price stability, and MKR, a governance token used by the community to oversee and maintain the protocol. MKR holders play a central role in decision-making in the Maker Protocol, supported by a diverse network of stakeholders, including external contributors and the wider community.

Earlier this fall, MakerDAO underwent a rebrand, adopting the name Sky. These changes are part of the project’s broader “endgame” strategy to introduce significant upgrades to the ecosystem. Under the plan, DAI holders will have the option to convert to a new stablecoin called Sky Dollar (USDS) at a 1:1 conversion rate. USDS offers additional benefits such as access to native token rewards, increasing its appeal. Additionally, the governance token MKR will evolve into SKY through an upgradeable structure, with a conversion rate of 1 MKR to 24,000 SKY tokens.