Decentralized finance (DeFi) protocols Aave and Sky (previously Maker) are exploring a partnership designed to "close the gap between DeFi and TradFi," according to a Sept. 2 announcement. The proposed partnership, referred to as the Sky Aave Force, follows a Sept. 2 governance proposal by Phoenix Labs, a DeFi research and development organization.

The proposal suggests issuing SPK tokens—native to Sky's subDAO, Spark—to help establish a market for USDS, a stablecoin launched after Maker's August rebranding to Sky. "Sky Aave Force has an ambitious goal: to drive mass adoption and close the gap between DeFi and TradFi. Now is the time to work together," said Aave Labs, the developer behind the Aave DeFi lending platform.

The Sky Aave Force aims to bridge DeFi and traditional finance (TradFi) by creating markets for Sky's USDS stablecoin on the Aave lending platform. This would allow users to earn the Sky Savings Rate (SSR) by depositing their USDS on Aave, potentially outperforming other stablecoins like USDC and USDT.

Source: https://cointelegraph.com/news/aave-sky-float-partnership-bridge-defi-tradfi

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