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 Fee for ALLOCATOR-SPARK-A will be decreased.
• The DAI Savings Rate (DSR) will be decreased.
• A total of 10 million USDS and 24 million SKY will be transferred to the Launch Project.
• A total of 2.5 million USDS will be transferred to the Integration Boost.
• A total of 25,402 USDS will be distributed as Aligned Delegate compensation for December 2024.
• A total of 122,438 USDS and 988,000 SKY will be distributed as Atlas Core Development payments.
• A new suckable USDS vest contract will be set up.
• A new transferrable SKY vest contract will be set up.
• Three Facilitator USDS payment streams will be set up.
• Three Facilitator SKY payment streams will be set up.
• A total of 314,567 DAI will be distributed as SparkLend-Aave Revenue Share payment for Q4 2024.
• A TACO DAO Resolution will be approved.
• 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 30 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

Stability Fee Change

• Authorization: Ecosystem Authorization
• Proposal: Forum post

If this executive proposal passes, then the Stability Fee (SF) for the vault type listed below will be changed as follows:

• Decrease ALLOCATOR-SPARK-A SF by 6.88 percentage points from 12.25% to 5.37%.

DAI Savings Rate Reduction

• Authorization: Ecosystem Approval
• Proposal: Forum post

If this executive proposal passes, then the DAI Savings Rate (DSR) will be decreased as follows:

• Decrease the DSR by 0.25 percentage points from 11.50% to 11.25%.

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

Integration Boost Funding

• Authorization: Atlas A.5.2.1.2
• Proposal: Forum Post

If this executive proposal passes, then the following Integration Boost funding distribution will be made:

• Transfer 2.5 million USDS to 0xD6891d1DFFDA6B0B1aF3524018a1eE2E608785F7.

Aligned Delegate Compensation for December 2024

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

If this executive proposal passes, then a total of 25,402 USDS will be distributed to seven Aligned Delegates as compensation for December 2024.

Delegate	Amount (USDS)	Address
BLUE	4,000 USDS	0xb6C09680D822F162449cdFB8248a7D3FC26Ec9Bf
Bonapublica	4,000 USDS	0x167c1a762B08D7e78dbF8f24e5C3f1Ab415021D3
Cloaky	4,000 USDS	0x869b6d5d8FA7f4FFdaCA4D23FFE0735c5eD1F818
JuliaChang	4,000 USDS	0x252abAEe2F4f4b8D39E5F12b163eDFb7fac7AED7
vigilant	4,000 USDS	0x2474937cB55500601BCCE9f4cb0A0A72Dc226F61
PBG	3,467 USDS	0x8D4df847dB7FfE0B46AF084fE031F7691C6478c2
Byteron	1,935 USDS	0xc2982e72D060cab2387Dba96b846acb8c96EfF66

Atlas Core Development Payments

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

If this executive proposal passes, then a total of 122,438 USDS and 988,000 SKY will be distributed to two Atlas Core Development contributors and their teams:

USDS Token Transfers

Contributor	USDS Amount	Address
BLUE	83,602 USDS	0xb6C09680D822F162449cdFB8248a7D3FC26Ec9Bf
Kohla (Cloaky)	10,000 USDS	0x73dFC091Ad77c03F2809204fCF03C0b9dccf8c7a
Ennoia (Cloaky)	10,000 USDS	0xA7364a1738D0bB7D1911318Ca3FB3779A8A58D7b
Cloaky	18,836 USDS	0x869b6d5d8FA7f4FFdaCA4D23FFE0735c5eD1F818

SKY Token Transfers

Contributor	SKY Amount	Address
BLUE	550,000 SKY	0xb6C09680D822F162449cdFB8248a7D3FC26Ec9Bf
Cloaky	438,000 SKY	0x869b6d5d8FA7f4FFdaCA4D23FFE0735c5eD1F818

New Suckable USDS Vest Contract Setup

• Authorization: Ecosystem Authorization
• Proposal: Forum Post

If this executive proposal passes, then a new suckable USDS vest contract will be set up through the following actions:

• Authorize the new USDS vest contract (0xc447a9745aDe9A44Bb9E37B7F6C92f9582544110) to access the surplus buffer (MCD_VAT).
• Set the maximum vesting speed (cap) on the new USDS vest contract to 46,200 USDS per 30 days.
• Add the new USDS vest contract (0xc447a9745aDe9A44Bb9E37B7F6C92f9582544110) to Chainlog under MCD_VEST_USDS.

New Transferrable SKY Vest Contract Setup

• Authorization: Ecosystem Authorization
• Proposal: Forum Post

If this executive proposal passes, then a new transferrable SKY vest contract will be set up through the following actions:

• Convert 624 MKR held in the Pause Proxy to SKY via the MKR_SKY contract.
• Approve the new SKY vest contract (0x67eaDb3288cceDe034cE95b0511DCc65cf630bB6) to take a total of 14,256,000 SKY from the treasury (MCD_PAUSE_PROXY.)
• Set the maximum vesting speed (cap) on the new SKY vest contract to 475,200 SKY per 30 days.
• Add the new SKY vest contract (0x67eaDb3288cceDe034cE95b0511DCc65cf630bB6) to Chainlog under MCD_VEST_SKY_TREASURY.

Facilitator Payment Streams Setup

• Authorization: Atlas A.1.6.2.4.1
• Proposal: Forum Post

If this executive proposal passes, the following vesting streams will be created:

USDS Streams

Facilitator	Address	Amount (USDS)	Start Date	End Date
Endgame Edge	0x9E72629dF4fcaA2c2F5813FbbDc55064345431b1	462,000	2025-02-01	2025-12-31
JanSky	0xf3F868534FAD48EF5a228Fe78669cf242745a755	462,000	2025-02-01	2025-12-31
Ecosystem	0xFCa6e196c2ad557E64D9397e283C2AFe57344b75	462,000	2025-02-01	2025-12-31

SKY Streams

Facilitator	Address	Amount (SKY)	Start Date	End Date
Endgame Edge	0x9E72629dF4fcaA2c2F5813FbbDc55064345431b1	4,752,000 SKY	2025-02-01	2025-12-31
JanSky	0xf3F868534FAD48EF5a228Fe78669cf242745a755	4,752,000 SKY	2025-02-01	2025-12-31
Ecosystem	0xFCa6e196c2ad557E64D9397e283C2AFe57344b75	4,752,000 SKY	2025-02-01	2025-12-31

SparkLend-Aave Q4 2024 Revenue Share Payment

• Authorization: Ecosystem Authorization
• Proposal: Forum Post

If this executive proposal passes, then a payment of 314,567 DAI will be made to a smart contract controlled by Aave Governance at 0x464C71f6c2F760DdA6093dCB91C24c39e5d6e18c as part of the SparkLend-Aave Revenue Share.

TACO DAO Resolution Approval

• Authorization: Forum post
• Proposal: Forum post

If this executive proposal passes, the resolutions posted within IPFS hash bafkreieqcricvrwb7ndxep6unlhhm6iie3dlkr3cl4tdypinjws4pycalq will be approved.

Spark Proxy Spell

• Authorization: Governance Polls 1180, 1181, 1182, 1183
• Proposal: Forum Posts

If this executive proposal passes, then a Spark Proxy Spell, prepared by Phoenix Labs, and reviewed by Wonderland and Certora, will be executed at 0xFe447da54AdD21a8503eb81d328c5D60fE90eC26 with the following contents:

[Mainnet] Onboard USDS

• Onboarding USDS onto SparkLend Ethereum with the following parameters:
  • Optimal Utilization: 95%
  • Base: SSR + 0.25%
  • Slope1: 0%
  • Slope2: 20%
  • Stable rate func (deprecated): N/A
  • Enable Borrow: YES
  • Stable Rate Borrowing: NO
  • Isolation Borrowable: YES
  • Siloed Borrowing: NO
  • Flash Loan: NO
  • Loan To Value: 0%
  • Liquidation Threshold: 0%
  • Liquidation Bonus: 10%
  • Reserve Factor: 0%
  • Supply Cap: unlimited
  • Supply Cap Absolute Maximum Exposure (max)]: N/A
  • Supply Cap Target Available Exposure (gap): N/A
  • Supply Cap Automator Cooldown Period (ttl): N/A
  • Borrow Cap: unlimited
  • Borrow Cap Absolute Maximum Exposure (max): N/A
  • Borrow Cap Target Available Exposure (gap): N/A
  • Borrow Cap Automator Cooldown Period (ttl): N/A
  • Isolation Mode: NO
  • Isolation Mode Debt Ceiling: 0
  • Liquidation Protocol Fee: 10%
  • High Efficiency Mode (Emode) Category: 0

[Mainnet Liquidity Layer] Onboard Aave Prime USDS

• Onboarding Aave Prime USDS onto the SparkLend Liquidity Layer with the following parameters:
  • Deposits:
    • Max amount: 50 million USDS
    • Slope: 50 million USDS per day
  • Withdrawals
    • Max amount: Unlimited
    • Slope: Unlimited

[Mainnet Liquidity Layer] Onboard SparkLend USDS, USDC

• Onboarding SparkLend USDS and SparkLend USDC onto the SparkLend Liquidity Layer with the following parameters:
  • USDS:
    • Deposits:
      • Max amount: 150 million USDS
      • Slope: 75 million USDS per day
    • Withdrawals:
      • Max amount: Unlimited
      • Slope: Unlimited
  • USDC:
    • Deposits:
      • Max amount: 20 million USDC
      • Slope: 10 million USDC per day
    • Withdrawals:
      • Max amount: Unlimited
      • Slope: Unlimited

[Mainnet Liquidity Layer] Modify Rate Limits

• Setting the following rate limit parameters for Spark Liquidity Layer Mainnet USDS and USDC:
  • Minting USDS:
    • Max amount: 50 million USDS
    • Slope: 50 million USDS per day
  • Swapping USDS to USDC:
    • Max amount: 50 million USDC
    • Slope: 50 million USDC per day
  • USDC CCTP (Cross-Chain Transfer Protocol) Transferring (All Routes):
    • Max amount: 50 million USDS
    • Slope: 25 million USDS per day

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.