rewrite this title Sky Initiates Executive Vote, Proposing Adjustments To Savings Rates, Stability Fees, And More

by
Alisa Davidson

Published: November 29, 2024 at 10:30 am Updated: November 29, 2024 at 10:20 am

by Ana

Edited and fact-checked:
November 29, 2024 at 10:30 am

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Decentralized blockchain protocol, Sky announced the launch of its latest Sky Executive Vote. The proposed changes to the Sky Protocol, once approved by the Sky Ecosystem Governance, will take effect 16 hours after the voting concludes. These updates are designed to enhance the protocol’s functionality and optimize user experience.

The proposal outlines several key adjustments. The savings rate is set to increase to 9.5%, while the Dai Savings Rate (DSR) will be adjusted to 8.5%. Changes to the stability fee parameters are also included. For Ethereum-based collateral, the ETH-A stability fee will rise to 9.25%, ETH-B to 9.75%, and ETH-C to 9%. For wrapped staked Ethereum (WSTETH), the WSTETH-A stability fee will increase to 10.25% and WSTETH-B to 10%. Stability fees for wrapped Bitcoin (WBTC) will also see changes, with WBTC-A increasing to 12.25%, WBTC-B to 12.75%, and WBTC-C to 12%.

Additionally, the proposal includes an adjustment to the Aave Lido Market USDS Direct Deposit Module (DDM) parameter, increasing the maximum debt ceiling to 200 million USDS. The vote also incorporates a Spark Proxy Spell, which, if passed, will impact users of SparkLend and Spark’s Morpho Vaults. Other updates include changes to the ALLOCATOR-SPARK-A DC-IAM parameter, an increase in the Surplus Buffer Upper Limit, and an extension to the GSM Pause Delay.

Sky has confirmed that voting in favor of this proposal will align MKR/SKY tokens with the outlined actions. The GSM Pause Delay ensures that any approved changes will only take effect after a 16-hour review period, allowing for governance oversight. This governance initiative reflects Sky’s commitment to refining its ecosystem while addressing the dynamic needs of its community.

MakerDAO Rebrands To Sky 

Sky, previously known as MakerDAO, is a lending protocol designed to bring stability to the cryptocurrency economy through its innovative dual-token system. This 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 pivotal role in decision-making for the Maker Protocol, which is supported by a diverse network of stakeholders, including external contributors and the wider community.

Earlier this autumn, MakerDAO underwent a rebranding, adopting the name Sky. This change is part of the project’s broader “Endgame” strategy, which introduces significant upgrades to its ecosystem. Under this plan, DAI holders will have the option to transition 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, enhancing its appeal. Additionally, the governance token MKR is set to evolve into SKY through an upgradeable structure, with a conversion ratio of 1 MKR to 24,000 SKY tokens. 

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles