The Core Facilitators, Sidestream, and Dewiz have placed an executive proposal into the voting system. 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:

• Spell 1 actions for RWA001-A offboarding will be performed.
• The Keeper Network configuration will be updated.
• ALLOCATOR-SPARK-A DC-IAM parameters will be updated.
• The MKR-SKY Delayed Upgrade Penalty will be increased.
• Prime Agent proxy spells for Spark and Grove will be whitelisted in their respective StarGuard modules.

Voting for this executive proposal will place your 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 48 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

RWA001-A Offboarding (Spell 1)

• Authorization: Technical Scope Authorization
• Proposal: Forum Post

If this executive proposal passes, then the Spell 1 actions of the RWA001-A offboarding process will be executed.

The outcome of these actions will be that the USDC received in the PauseProxy will be converted to DAI and used to pay off some of the vault's outstanding debt. The position will be put into a soft liquidation state with a follow-up spell required after a minimum of 30 days to complete the liquidation process.

To mitigate a potential griefing attack that would prevent spell execution, this action will only be executed if the balance of USDC in the PauseProxy is less than the outstanding debt of the RWA001-A position.

Please see the Technical Scope thread for further details.

Temporarily Update LITE-PSM-USDC-A AutoLine Parameters

• Call DssExecLib.setIlkAutoLineDebtCeiling with:
  • bytes32 ilk being "LITE-PSM-USDC-A"
  • uint256 amount being 10_014_319_244

Force Updated AutoLine Parameters into the Vat Debt Ceiling

• Call MCD_IAM_AUTO_LINE.exec for LITE-PSM-USDC-A.

Fill the LITE-PSM-USDC-A Buffer

• Call LITE_PSM_USDC_A.fill() only if LITE_PSM_USDC_A.rush() > 0.

Approve LITE_PSM_USDC_A to pull USDC

• Call USDC.approve with:
  • address spender being LITE_PSM_USDC_A;
  • uint256 amount being 14_319_243_510000, i.e. exactly 14,319,243.51 USDC using 6 decimals.

Convert Returned USDC to DAI

• Call LITE_PSM_USDC_A.sellGemNoFee with:
  • LITE_PSM_USDC_A being 0xf6e72Db5454dd049d0788e411b06CfAF16853042;
  • address usr being RWA001_A_URN;
  • uint256 gemAmt being 14_319_243_510000, i.e. exactly 14,319,243.51 USDC using 6 decimals

Restore the Original LITE-PSM-USDC-A AutoLine Parameters

• Call DssExecLib.setIlkAutoLineDebtCeiling with:
  • bytes32 ilk being "LITE-PSM-USDC-A"
  • uint256 amount being 10_000_000_000

Re-execute MCD_IAM_AUTO_LINE for LITE-PSM-USDC-A

• Call MCD_IAM_AUTO_LINE.exec with:
  • bytes32 ilk being "LITE-PSM-USDC-A"

Repay RWA001_A_URN Debt

• Call RWA001_A_URN.wipe with:
  • RWA001_A_URN being 0xa3342059BcDcFA57a13b12a35eD4BBE59B873005
  • uint256 wad being the DAI amount returned by LITE_PSM_USDC_A.sellGemNoFee(RWA001_A_URN, gemAmt).

Set the RWA001-A Debt Ceiling to Zero

• Call DssExecLib.setIlkDebtCeiling with:
  • bytes32 ilk being "RWA001-A"
  • uint256 amount being 0

Start Soft Liquidation

• Call MIP21_LIQUIDATION_ORACLE.tell with:
  • MIP21_LIQUIDATION_ORACLE being 0x88f88Bb9E66241B73B84f3A6E197FbBa487b1E30
  • bytes32 ilk being "RWA001-A"

Keeper Network Adjustments

• Authorization: Governance Poll 1626
• Proposal: Forum Post

If this executive proposal passes, then the Keeper Network configuration will be updated through the following actions.

Remove GELATO Keeper Lane

• Remove the GELATO lane from CRON_SEQUENCER.
• Disable the claim path for the Gelato adapter located at 0x0B5a34D084b6A5ae4361de033d1e6255623b41eD.

Remove KEEP3R Keeper Lane

• Remove the KEEP3R lane from CRON_SEQUENCER.
• Disable the claim path for the Keep3r adapter located at 0xaeFed819b6657B3960A8515863abe0529Dfc444A.

Rename MAKER Lane

• Rename the MAKER lane to SKY.

ALLOCATOR-SPARK-A DC-IAM Parameter Updates

• Authorization: Atlas - A.3.7.1.2.2 - Update Process
• Proposal: Forum Post

If this executive proposal passes, then the ALLOCATOR-SPARK-A DC-IAM parameters will be updated as follows:

• Increase gap by 1 billion USDS, from 500 million USDS to 1.5 billion USDS.
• Decrease ttl by 12 hours, from 24 hours to 12 hours.
• Keep line unchanged at 10 billion USDS.

MKR to SKY Delayed Upgrade Penalty Increase

• Authorization: Atlas - A.4.1.2.1.1.1.1 - MKR To SKY Upgrade Penalty
• Proposal: Forum Post

If this executive proposal passes, then the Delayed Upgrade Penalty applied to MKR to SKY conversions will increase by 1 percentage point, from 3% to 4%.

Prime Agent Proxy Spells

If this executive proposal passes, then a Spark proxy spell with address 0xAb385eC0Df225D5A37F5245D2aE43D53Fe4Fed20 and codehash 0x7801a877c029ce6ec7dcde0d16183eef2f81fd6e8fbd04a6433f0d6c3c0ed267 will be whitelisted in the Spark StarGuard.

If this executive proposal passes, then a Grove proxy spell with address 0xbE5E67C516074ba0807A3535035868cE7F2Bd372 and codehash 0xb14f6d21bb231192c44f9b868d915f8f541213a6834a72c6158efbd64ff3223c will be whitelisted in the Grove StarGuard.

Spark

The Pull Request for the Spark proxy spell can be viewed here.

[Mainnet] SparkLend - Deprecate BTC eMode

• Authorization: Core Council Risk Advisor Approval
• Proposal: Forum Post

BTC-correlated eMode will be deprecated on SparkLend by making the following parameter updates:

• cbBTC
  • emode category: 0
• LBTC
  • emode category: 0

[Mainnet] SparkLend - Update Cap Automator Parameters

• Authorization: Core Council Risk Advisor Approval
• Proposal: Forum Post

Cap Automator parameters will be updated to support Spark's new Liquidity Layer-based cap management framework as follows:

• WETH
  • Supply cap
    • max: Unlimited
    • gap: 100,000 WETH
    • ttl: 4 hours
  • Borrow cap
    • max: Unlimited
    • gap: 10,000 WETH
    • ttl: 4 hours
• wstETH
  • Supply cap
    • max: Unlimited
    • gap: 50,000 wstETH
    • ttl: 4 hours
• weETH
  • Supply cap
    • max: 500,000 weETH
    • gap: 10,000 weETH
    • ttl: 4 hours
• WBTC
  • Supply cap
    • max: 50,000 WBTC
    • gap: 500 WBTC
    • ttl: 4 hours
  • Borrow cap
    • max: 50,000 WBTC
    • gap: 100 WBTC
    • ttl: 4 hours
• cbBTC
  • Supply cap
    • max: 50,000 cbBTC
    • gap: 500 cbBTC
    • ttl: 4 hours
  • Borrow cap
    • max: 50,000 cbBTC
    • gap: 100 cbBTC
    • ttl: 4 hours

[Mainnet] SparkLend - Update Parameters for Deprecated Assets

• Authorization: Core Council Risk Advisor Approval
• Proposal: Forum Post

LTV and Liquidation Threshold parameters for deprecated assets on SparkLend will be updated to the following amounts:

• rsETH
  • LTV: 0%
  • Liquidation Threshold: 70%
• ezETH
  • LTV: 0%
  • Liquidation Threshold: 70%
• tBTC
  • LTV: 0%
  • Liquidation Threshold: 70%
• rETH
  • Liquidation Threshold: 70%

[Mainnet] SparkLend - Increase USDC and USDT Reserve Factors

• Authorization: Core Council Risk Advisor Approval
• Proposal: Forum Post

Reserve factors for SparkLend stablecoin markets will be increased to the following levels:

• Increase the USDC reserve factor to 10%.
• Increase the USDT reserve factor to 10%.

[Mainnet] Spark Liquidity Layer - Update Rate Limits

• Authorization: Snapshot Poll
• Proposal: Forum Post

Spark Liquidity Layer rate limits will be increased to the following amounts:

• Anchorage USDC
  • maxAmount: 50 million USDC
  • slope: 250 million USDC per day
• Uniswap v4 USDT/USDS swap
  • maxAmount: 25 million USDT/USDS
  • slope: 250 million USDT/USDS per day
  • maxSlippage: 0.2%
• USDS mint
  • maxAmount: 1 billion USDS
  • slope: 1 billion USDS per day
• USDC PSM swap
  • maxAmount: 1 billion USDC/USDS
  • slope: 1 billion USDC/USDS per day

[Mainnet] Spark Liquidity Layer - Update ALM Proxy Freezable Configuration

• Authorization: Snapshot Poll
• Proposal: Forum Post

The Ethereum ALM Proxy Freezable contract will be upgraded to version 1.1 at 0x9Ad87668d49ab69EEa0AF091de970EF52b0D5178.

The upgrade will maintain freeze authority over the Spark Savings USDC vault while introducing routine operational improvements.

[Mainnet] SparkLend - Claim Reserves

• Authorization: Atlas - A.6.1.1.1.2.6.1.2.1.2.3 - Token Claim Authorization
• Proposal: Forum Post

SparkLend reserves will be claimed as follows:

• Claim all available SparkLend reserves.
• Transfer USD stablecoin reserves to the Spark ALM Proxy.
• Transfer non-USD stablecoin reserves to the Spark Operations Multisig for liquidation.

[Mainnet] Spark Treasury - Transfer Excess USDS for SPK Buybacks

• Authorization: Atlas - A.6.1.1.1.3.4.2.3 - Excess SubDAO Proxy Funds Disposition Policy
• Proposal: Forum Post

663,354 USDS will be transferred to the Spark Operations Multisig for SPK buybacks as communicated in this forum post.

[Avalanche] Spark Liquidity Layer - Update ALM Proxy Freezable Configuration

• Authorization: Snapshot Poll
• Proposal: Forum Post

The Avalanche ALM Proxy Freezable contract will be upgraded to version 1.1 at 0x45d91340B3B7B96985A72b5c678F7D9e8D664b62.

The upgrade will maintain freeze authority over the Spark Savings USDC vault while introducing routine operational improvements.

[Base] Spark Liquidity Layer - Update ALM Proxy Freezable Configuration

• Authorization: Snapshot Poll
• Proposal: Forum Post

The Base ALM Proxy Freezable contract will be upgraded to version 1.1 at 0xCBA0C0a2a0B6Bb11233ec4EA85C5bFfea33e724d.

The upgrade will maintain freeze authority over the Spark USDC Morpho vault while introducing routine operational improvements.

Grove

The Pull Request for the Grove proxy spell can be viewed here.

[Mainnet] Grove Treasury - Monthly Grant for Grove Foundation

• Authorization: Atlas - A.2.8.2.2.2.4.5.2.1 - Grove Foundation Grant Authorization: Q2 2026
• Proposal: Forum Post

The Grove Foundation will receive a combined disbursement covering Months 2 and 3 of the previously approved three-month Foundation grant program.

1,600,000 USDS will be transferred from the Grove SubProxy to the Grove Foundation Multisig.

[Mainnet] Grove Treasury - Swap USDC to USDS

• Authorization: Core Facilitator Approval
• Proposal: Forum Post

753,649 USDC currently held by the Grove SubProxy will be converted into 753,649 USDS.

[Mainnet] Grove Treasury - Transfer GROVE Tokens to Grove Foundation

• Authorization: Governance Poll 1634
• Proposal: Forum Post

500,000,000 GROVE from the Grove SubProxy will be transferred to the Grove Foundation Multisig.

[Avalanche] Grove Governance Relay - Add CCTPv2 Receiver

• Authorization: Governance Poll 1634
• Proposal: Forum Post

A new audited CCTPv2 governance relay receiver at 0x8Ea8Dff8c29f568eA1E716E2C3AfbD003EB83cfA will be added on Avalanche while retaining the existing CCTPv1 receiver as a fallback path.

This action will:

• Grant SUBMISSION_ROLE on the Avalanche Executor to the newly deployed CCTPv2 Receiver.
• Retain the existing CCTPv1 Receiver and its current permissions.
• Enable governance messages to be delivered through either relay implementation.
• Make CCTPv2 the preferred path for future governance operations.
• Preserve CCTPv1 as a known-good recovery mechanism during the CCTPv2 validation period.

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.