The Governance Facilitators, Sidestream, and Dewiz have placed an executive proposal into the voting system. MKR/SKY Holders should vote for this proposal if they support the following alterations to the Sky Protocol.

If you are new to voting in the Sky Protocol, please see the voting guide to learn how voting works.

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Executive Summary

If this executive proposal passes, the following actions will occur within the Sky Protocol:

• The Stability Parameter Bounded External Access Module (SP-BEAM) will be initialized as described below.
• The Sky Token Rewards (SKY to USDS) Annual Percentage Yield (APY) will be adjusted.
• The Aave Lido Market (Prime Market) Direct Deposit Module (DDM) Debt Ceiling (DC) will be set to 0.
• The Smart Burn Engine (SBE) hop parameter will be updated as described below.
• 5 million USDS and 24 million SKY will be distributed to the Launch Project.
• A total of 256,888 DAI will be distributed as SparkLend-Aave Revenue Share payment for Q1 2025.
• A total of 24,000 USDS will be distributed as Aligned Delegate compensation for March 2025.
• A total of 97,584 USDS and 618,000 SKY will be distributed as Atlas Core Development payments.
• A Spark proxy spell will be executed.

Voting for this executive proposal will place your MKR/SKY in support of the actions outlined above.

Unless otherwise noted, the actions listed above are subject to the GSM Pause Delay. This means that if this executive proposal passes, the changes and additions listed above will only become active in the Sky Protocol after the GSM Pause Delay has expired. The GSM Pause Delay is currently set to 18 hours.

This executive proposal includes an office-hours modifier that means that it can only be executed between 14:00 and 21:00 UTC, Monday - Friday.

If this executive proposal does not pass within 30 days, then it will expire and can no longer have any effect on the Sky Protocol.

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Proposal Details

SP-BEAM Initialization

• Authorization: Governance Poll 1233, Ecosystem Authorization
• Proposal: Forum Posts 1, 2

If this executive proposal passes, then the Stability Parameter Bounded External Access Module (SP-BEAM) will be initialized as described below:

• Initialize SP-BEAM by calling SPBEAMInit.init with the following parameters:
  • inst.spbeam: 0x36B072ed8AFE665E3Aa6DaBa79Decbec63752b22
  • inst.mom: 0xf0C6e6Ec8B367cC483A411e595D3Ba0a816d37D0
  • cfg.tau: 57,600 seconds
  • cfg.bud: 0xe1c6f81D0c3CD570A77813b81AA064c5fff80309
  • For the following cfg.ilks.id:
    • ETH-A, ETH-B, ETH-C, WSTETH-A, WSTETH-B, WBTC-A, WBTC-B, WBTC-C, SSR:
      • cfg.ilks.min: 200 basis points
      • cfg.ilks.max: 3,000 basis points
      • cfg.ilks.step: 400 basis points
  • For the following cfg.ilks.id:
    • ALLOCATOR-SPARK-A, ALLOCATOR-NOVA-A, ALLOCATOR-BLOOM-A, DSR:
      • cfg.ilks.min: 0 basis points
      • cfg.ilks.max: 3,000 basis points
      • cfg.ilks.step: 400 basis points
• Add SP-BEAM to the Chainlog as MCD_SPBEAM at 0x36B072ed8AFE665E3Aa6DaBa79Decbec63752b22.
• Add SPBEAMMom to the Chainlog as SPBEAM_MOM at 0xf0C6e6Ec8B367cC483A411e595D3Ba0a816d37D0.

Sky Token Rewards Rebalance

• Authorization: Ecosystem Authorization
• Proposal: Forum Post

If this executive proposal passes, then the Sky Token Rewards (SKY to USDS) APY will be adjusted to match the SSR by changing the rewards distribution rate through the following actions:

• Yank MCD_VEST_SKY vest with ID 1.
• Claim the remaining tokens from the old DssVest by calling VestedRewardsDistribution.distribute().
• Create a new MCD_VEST_SKY stream with the following parameters:
  • Rewards Distribution Rate: 160 million
  • Rewards Distribution Cap: 176 million
  • Start Date relative to the spell cast time:
    • vestBgn: block.timestamp
  • End Date relative to the spell cast time:
    • vestTau: 182 days
    • vestFin: block.timestamp + 182 days
• File the new stream ID on REWARDS_DIST_USDS_SKY.

Set Aave Lido Market (Prime Market) Direct Deposit Module Debt Ceiling to 0

• Authorization: Ecosystem Authorization
• Proposal: Forum post

If this executive proposal passes, then the Aave Lido Market (Prime Market) Direct Deposit Module (DDM) Debt Ceiling (DC) will be set to 0 by executing the following actions:

• Remove DIRECT-SPK-AAVE-LIDO-USDS from autoline.
• Set DIRECT-SPK-AAVE-LIDO-USDS DC to zero.

Smart Burn Engine Changes

• Authorization: Ecosystem Authorization
• Proposal: Forum post

If this executive proposal passes, then the Splitter.hop SBE parameter will be updated as follows:

• Increase Splitter.hop by 493 seconds from 1,235 seconds to 1,728 seconds.

Launch Project Funding

• Authorization: Atlas A.5.6
• Proposal: Forum post

If this executive proposal passes, then the following Launch Project funding distributions will be made:

• Transfer 5 million USDS to the Launch Project at 0x3C5142F28567E6a0F172fd0BaaF1f2847f49D02F.
• Transfer 24 million SKY to the Launch Project at 0x3C5142F28567E6a0F172fd0BaaF1f2847f49D02F.

Spark-Aave Revenue Share Payment

• Authorization: Ecosystem Authorization
• Proposal: Forum post

If this executive proposal passes, then a payment of 256,888 DAI will be made to a smart contract controlled by Aave Governance at 0x464C71f6c2F760DdA6093dCB91C24c39e5d6e18c as part of the SparkLend-Aave Revenue Share.

Aligned Delegate Compensation for March 2025

• Authorization: Atlas A.1.5.8
• Proposal: Forum post

If this executive proposal passes, then a total of 24,000 USDS will be distributed to seven Aligned Delegates and their teams as compensation for March 2025.

Delegate	Amount (USDS)	Address
BLUE	4,000	0xb6C09680D822F162449cdFB8248a7D3FC26Ec9Bf
Bonapublica	4,000	0x167c1a762B08D7e78dbF8f24e5C3f1Ab415021D3
Cloaky	4,000	0x9244F47D70587Fa2329B89B6f503022b63Ad54A5
JuliaChang	4,000	0x252abAEe2F4f4b8D39E5F12b163eDFb7fac7AED7
WBC	4,000	0xeBcE83e491947aDB1396Ee7E55d3c81414fB0D47
PBG	3,355	0x8D4df847dB7FfE0B46AF084fE031F7691C6478c2
Byteron	645	0xc2982e72D060cab2387Dba96b846acb8c96EfF66

Atlas Core Development Payments

• Authorization: Ecosystem Approval, Atlas Axis Approval
• Proposal: Forum Post

If this executive proposal passes, then a total of 97,584 USDS and 618,000 SKY will be distributed for Atlas Core Development funding.

USDS Payments

Recipient	Amount (USDS)	Address
BLUE	50,167	0xb6C09680D822F162449cdFB8248a7D3FC26Ec9Bf
Ennoia	20,000	0xA7364a1738D0bB7D1911318Ca3FB3779A8A58D7b
Cloaky	16,417	0x9244F47D70587Fa2329B89B6f503022b63Ad54A5
Kohla	11,000	0x73dFC091Ad77c03F2809204fCF03C0b9dccf8c7a

SKY Payments

Recipient	Amount (SKY)	Address
BLUE	330,000	0xb6C09680D822F162449cdFB8248a7D3FC26Ec9Bf
Cloaky	288,000	0x9244F47D70587Fa2329B89B6f503022b63Ad54A5

Spark Proxy Spell

If this executive proposal passes, then a Spark Proxy Spell will be executed at 0xA8FF99Ac98Fc0C3322F639a9591257518514455c with the following contents.

[Arbitrum] Spark Liquidity Layer - Onboard Fluid sUSDS

• Authorization: Governance Poll 1202
• Proposal: Forum Post

Onboard Fluid sUSDS onto the Spark Liquidity Layer on Arbitrum with the following Rate Limits:

• Deposits
  • Max amount: 10 million USDS worth of sUSDS
  • Slope: 5 million USDS worth of sUSDS
• Withdrawals
  • Max amount: unlimited

[Mainnet] Spark Liquidity Layer - Onboard SparkLend DAI

• Authorization: Governance Poll 1224
• Proposal: Forum Post

Onboard Mainnet SparkLend DAI to the Spark Liquidity Layer with the following Rate Limits:

• Deposits
  • Max amount: 100 million DAI
  • Slope: 50 million DAI per day
• Withdrawals
  • Max amount: unlimited

[Mainnet] Spark Liquidity Layer - Onboard Curve sUSDS/USDT Pool

• Authorization: Governance Poll 1223
• Proposal: Forum Post

Onboard the Curve sUSDS/USDT pool to the Spark Liquidity Layer on Mainnet with the following Rate Limits:

• Swap
  • Max amount: 5 million
  • Slope: 20 million per day
  • Max slippage: 0.15%
• Deposits
  • Max amount: 5 million
  • Slope: 20 million per day
  • Max slippage: 0.15%
• Withdrawals
  • Max amount: 25 million
  • Slope: 100 million per day
  • Max slippage: 0.15%

[Mainnet] Spark Liquidity Layer - Onboard Curve USDC/USDT Pool

• Authorization: Governance Poll 1222
• Proposal: Forum Post

Onboard the Curve USDC/USDT pool to the Spark Liquidity Layer on Mainnet with the following Rate Limits:

• Swap
  • Max amount: 5 million
  • Slope: 20 million per day
  • Max slippage: 0.15%
• Deposit
  • Max amount: 0
• Withdrawals
  • Max amount: 0

[Mainnet] SparkLend - Adjust cbBTC and tBTC Interest Rate Models

• Authorization: Governance Poll 1227
• Proposal: Forum Post

Adjust the cbBTC and tBTC Interest Rate Models as follows:

• Optimal utilization ratio: Increase by 20 percentage points from 60% to 80%.
• Base rate: Keep unchanged at 0%.
• Slope 1: Decrease by 3 percentage points from 4% to 1%.
• Slope 2: Keep unchanged at 300%.

[Mainnet] SparkLend - Reduce WBTC LT

• Authorization: Governance Poll 1229
• Proposal: Forum Post

Reduce the WBTC Liquidation Threshold as follows:

• Reduce WBTC Liquidation Threshold by 5 percentage points from 50% to 45%.

[Mainnet] SparkLend - Add sUSDS to USD Emode

• Authorization: Governance Poll 1226
• Proposal: Forum Post

Add sUSDS to the USD-correlated E-mode.

[Mainnet] Morpho DAI Vault - Onboard July sUSDe PT

• Authorization: Governance Poll 1228
• Proposal: Forum Post

Onboard PT-sUSDe-31July2025 to the Morpho DAI vault with the following parameters:

• Pool LLTV: 91.5%
• Pendle oracle discount rate: 20% APY
• Supply cap: 400 million DAI

[Mainnet, Base, Arbitrum] Spark Liquidity Layer - Upgrade Controller to v1.4.0 on All Chains

• Authorization: Governance Poll 1225
• Proposal: Forum Post

Upgrade the Spark ALM Controller to v1.4.0 on all chains.

Review

Community debate on these topics can be found on the Sky Governance forum. Please review any linked threads to inform your position before voting.

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Resources

Additional information about the Governance process can be found in the Operational Manual.

To add current and upcoming votes to your calendar, please see the Sky Governance Calendar.