The Governance 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:

• Actions to rebalance the Sky Token Rewards will be executed.
• A total of 21,062 USDS will be distributed as Aligned Delegate compensation for June 2025.
• A total of 77,584 USDS and 618,000 SKY will be distributed as Atlas Core Development payments for July 2025.
• A Huntingdon Valley Bank DAO Resolution will be approved.
• Auxiliary actions for the transfer of tokenized T-bills from Spark to Grove will be executed.
• Star proxy spells for Grove and Spark will be executed at 0xe069f56033Ed646aF3B4024501FF47BBce67CfD1 and 0x41EdbF09cd2f272175c7fACB857B767859543D15 respectively.

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 24 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

Sky Token Rewards Rebalance

• Authorization: Ecosystem Approval
• Proposal: Forum Post

If this executive proposal passes, then the distribution of SKY token rewards to USDS holders will be normalized to ensure the effective yield provided by these rewards equals the Sky Savings Rate (SSR), as per A.4.3.2 - Token Reward Mechanism, by executing the following actions:

• yank() MCD_VEST_SKY_TREASURY vest with ID 4.
• Claim the remaining tokens from the old DssVest by calling VestedRewardsDistribution.distribute() on REWARDS_DIST_USDS_SKY.
• Create a new MCD_VEST_SKY_TREASURY stream with the following parameters:
  • res: 1 (restricted)
  • Increase SKY allowance for MCD_VEST_SKY_TREASURY to the sum of all active streams and the new stream created by this executive vote.
  • vestBgn: block.timestamp
  • vestTau: block.timestamp + 15,724,800 seconds (182 days after the spell executes)
  • tot: 100,851,495 SKY
• File the new stream ID on REWARDS_DIST_USDS_SKY

Aligned Delegate Compensation for June 2025

• Authorization: Atlas
• Proposal: Forum Post

If this executive proposal passes, then a total of 21,062 USDS will be distributed to eight Aligned Delegates as compensation for June 2025 as follows:

Delegate	Amount (USDS)	Address
BLUE	4,000	0xb6C09680D822F162449cdFB8248a7D3FC26Ec9Bf
Bonapublica	4,000	0x167c1a762B08D7e78dbF8f24e5C3f1Ab415021D3
Cloaky	4,000	0x9244F47D70587Fa2329B89B6f503022b63Ad54A5
JuliaChang	4,000	0x252abAEe2F4f4b8D39E5F12b163eDFb7fac7AED7
WBC	3,733	0xeBcE83e491947aDB1396Ee7E55d3c81414fB0D47
PBG	800	0x8D4df847dB7FfE0B46AF084fE031F7691C6478c2
Excel	400	0x0F04a22B62A26e25A29Cba5a595623038ef7AcE7
AegisD	129	0x78C180CF113Fe4845C325f44648b6567BC79d6E0

Atlas Core Development Payments for July 2025

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

If this executive proposal passes, then a total of 77,584 USDS and 618,000 SKY will be distributed as Atlas Core Development payments for July 2025 as follows:

USDS Payments

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

SKY Payments

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

Huntingdon Valley Bank DAO Resolution

• Authorization: Ecosystem Authorization
• Proposal: Forum Post

If this executive proposal passes, the Huntingdon Valley Bank (RWA009-A) DAO Resolution with IPFS hash bafkreidm3bqfiwv224m6w4zuabsiwqruy22sjfaxfvgx4kgcnu3wndxmva, to amend the Trust Agreement governing the RWA Master Participation Trust will be approved. The amendment allows the Trust to make tax payments directly, outside the standard distribution waterfall.

Auxiliary Actions for Token Transfer between Spark and Grove

• Authorization: Governance Poll 1533
• Proposal: Forum Post

If this executive proposal passes, the following auxiliary actions will be carried out to allow Grove to mint and transfer USDS to Spark in exchange for the tokenized T-bills, BUIDL, and JTRSY:

• Increase ALLOCATOR-BLOOM-A DC-IAM gap by 1.2 billion USDS from 50 million USDS to 1.25 billion USDS.
  • line remains unchanged at 2.5 billion USDS.
  • ttl remains unchanged at 86,400 seconds.
• Apply ALLOCATOR-BLOOM-A auto-line changes.
• Execute Grove Proxy Spell at address 0xe069f56033Ed646aF3B4024501FF47BBce67CfD1 - further details below.
• Decrease ALLOCATOR-BLOOM-A gap by 1.2 billion USDS from 1.25 billion USDS to 50 million USDS.
  • line remains unchanged at 2.5 billion USDS.
  • ttl remains unchanged at 86,400 seconds.

Star Proxy Spells for Grove and Spark

If this executive proposal passes, then Star proxy spells for Grove and Spark will be executed at 0xe069f56033Ed646aF3B4024501FF47BBce67CfD1 and at 0x41EdbF09cd2f272175c7fACB857B767859543D15 respectively with the following contents.

Grove Proxy Spell

[Mainnet] Mint USDS for BUIDL and JTRSY Tokens and Send it to Spark Allocator Buffer

• Authorization: Governance Poll 1533
• Proposal: Forum Post

The Grove Allocator Buffer will mint an amount of USDS equal to the BUIDL-I balance of the Spark ALMProxy at the time of Spell execution plus 404,016,484 USDS to account for Spark's JTRSY balance. This USDS will be transferred to the Spark Allocator Buffer to close the balance related to these tokenized T-bill holdings. Consequently, Grove will assume the associated debt positions for these collateral tokens.

[Mainnet] Grove Liquidity Layer - Onboard BlackRock BUIDL-I

• Authorization: Governance Poll 1536
• Proposal: Forum Post

Onboard BlackRock BUIDL-I to the Grove Liquidity Layer on Mainnet with the following rate limit parameters:

• Deposits
  • Max amount: 50 million USDC
  • Slope: 50 million USDC per day
• Withdrawals
  • Max amount: Unlimited

Token address: 0x6a9DA2D710BB9B700acde7Cb81F10F1fF8C89041

[Mainnet] Grove Liquidity Layer - Onboard Centrifuge JTRSY

• Authorization: Governance Poll 1537
• Proposal: Forum Post

Onboard Centrifuge JTRSY to the Grove Liquidity Layer on Mainnet with the following rate limit parameters:

• Deposits
  • Max amount: 50 million USDC
  • Slope: 50 million USDC per day
• Withdrawals
  • Max amount: Unlimited

Token address: 0x36036fFd9B1C6966ab23209E073c68Eb9A992f50

Spark Proxy Spell

[Mainnet] SparkLend - Reduce WBTC Liquidation Threshold

• Authorization: Governance Poll 1531
• Proposal: Forum Post

Reduce the WBTC Liquidation Threshold by 5 percentage points from 40% to 35%.

[Base] Spark Liquidity Layer - Increase Spark USDC Morpho Vault Rate Limits

• Authorization: Governance Poll 1529
• Proposal: Forum Post

Increase the Spark USDC Morpho vault rate limits on Base as follows:

• max: Increase by 50 million from 50 million to 100 million USDC.
• slope: Increase by 25 million per day from 25 million per day to 50 million USDC per day.

[Mainnet] Spark Liquidity Layer - Transfer of BUIDL and JTRSY Tokens to Grove

• Authorization: Governance Poll 1533
• Proposal: Forum Post

Transfer of all BUIDL and JTRSY tokenized T-bills held by Spark to Grove ALMProxy. Grove will assume the associated debt positions for these collateral tokens.

Additional information about this transfer can be found in this forum post.

[Mainnet] SparkLend - Transfer Accumulated SparkLend ETH to Multisig to be Liquidated

• Authorization: Governance Poll 1532
• Proposal: Forum Post

Transfer the accumulated ETH earned from SparkLend's Reserve Factor held in the Spark Treasury to the following multisig to be liquidated into USDS:

Liquidation multisig: 0x2E1b01adABB8D4981863394bEa23a1263CBaeDfC

Any received USDS will later be transferred to the Spark Proxy and serve as additional Risk Capital.

[Mainnet] Spark USDS Vault - Onboard PT-SPK-USDS Farm

• Authorization: Governance Poll 1530
• Proposal: Forum Post

Deploy a Spark USDS Morpho Vault and onboard the PT USDS-SPK Farm with the following parameters.

Spark Liquidity Layer Vault Rate Limit Parameters

• Max amount: 200 million USDS
• Slope: 100 million USDS per day

PT-USDS-24Sep2025 Market Parameters

• Pool LLTV: 96.5%
• Oracle base value (value at maturity): 1 USDS per PT token
• Oracle discount rate: 15%
• Pool supply cap: 500 million USDS

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.