Posted May 29 2025 00:00 UTC

MKR-to-SKY Upgrade Phase Two, Switch SKY Token Rewards Vesting Stream Source, Initialize Unichain and Optimism Native Bridges, Deactivate SparkLend DDM, Transfer Ownership of SPK Token to SPK Company Multisig, Increase ALLOCATOR-SPARK-A Maximum Debt Ceiling, Launch Project Funding, Delegate Compensation for April 2025, Atlas Core Development Payments for May 2025, Spark Proxy Spell - May 29, 2025

Phase Two actions for MKR-to-SKY Upgrade, change source of SKY For USDS Rewards to the Pause Proxy, initialization of Native Bridges on Unichain and Optimism, SparkLend Direct Deposit Module deactivation and removal from AutoLine, transfer ownership of SPK Token to SPK Company multisig, increase ALLOCATOR-SPARK-A Maximum Debt Ceiling, Launch Project funding, distribute Delegate Compensation for April 2025, distribute Atlas Core Development payments for May 2025, execute a Spark Proxy Spell.
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0x86F5A13C95ecf7263634b6e14E483d05D7d4aA0B

Spell Address

111

SKY Support

0

Supporters

Governing Proposal

Passed on May 31 2025 04:26 UTC. Executed on Jun 02 2025 14:47 UTC.

The Governance Facilitators, Dewiz, and Sidestream 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.

Executive Summary

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

  • Actions for MKR-to-SKY Upgrade Phase Two will be performed.
  • The source for Sky Token Rewards (SKY to USDS) will be changed to the PauseProxy.
  • Unichain Native Bridge will be launched with initial listed parameters.
  • Optimism Native Bridge will be launched with initial listed parameters.
  • The SparkLend Direct Deposit Module (DDM) Debt Ceiling will be deactivated.
  • Ownership of SPK Token will be transferred to the SPK Company Multisig.
  • ALLOCATOR-SPARK-A Maximum Debt Ceiling (line) will be increased.
  • 5 million USDS will be distributed to the Launch Project at 0x3C5142F28567E6a0F172fd0BaaF1f2847f49D02F.
  • A total of 26,267 USDS will be distributed as Aligned Delegate compensation for April 2025.
  • A total of 77,584 USDS and 618,000 SKY will be distributed as Atlas Core Development payments for May 2025.
  • A Spark proxy spell will be executed at 0x3968a022D955Bbb7927cc011A48601B65a33F346.

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.

Proposal Details

MKR-to-SKY Upgrade Phase Two

If this executive proposal passes, the following actions will complete Phase Two of the MKR-to-SKY Upgrade.

Activate USDS Rewards on the LSEV2-SKY-A Contract

LSEV2-SKY-A AutoLine Addition

Adjust GSM Pause Delay

Revoke Migrator Authority Over Vat Contract

  • Revoke LOCKSTAKE_MIGRATOR's authority over the vat.

Change the Source of Sky Token Rewards (SKY to USDS) to the Pause Proxy

If this executive proposal passes, then a new vesting stream will be initialized for Sky Token Rewards. This stream will be adjusted to match the SSR by changing the rewards distribution rate, and its source of SKY will be switched from minting new tokens to transferring tokens from the PauseProxy. These changes will be achieved by executing the following actions:

  • yank MCD_VEST_SKY stream ID 2.
  • Claim the remaining tokens from the old DssVest by calling VestedRewardsDistribution.distribute() on REWARDS_DIST_USDS_SKY
  • Set cap on MCD_VEST_SKY_TREASURY to 151,250,000 * WAD / 182 days.
  • Increase sky.approve(MCD_VEST_SKY_TREASURY, ...) by 137.5 million SKY to account for new vesting stream.
  • Remove old REWARDS_DIST_USDS_SKY from the keeper job by calling CRON_REWARDS_DIST_JOB.rem() with the current REWARDS_DIST_USDS_SKY.
  • Update Chainlog value for REWARDS_DIST_USDS_SKY to the new VestedRewardsDistribution contract at 0xC8d67Fcf101d3f89D0e1F3a2857485A84072a63F.
  • Add new REWARDS_DIST_USDS_SKY to the keeper job by calling CRON_REWARDS_DIST_JOB.set() with the new REWARDS_DIST_USDS_SKY and frequency of 601,200 seconds.
  • Deploy new MCD_VEST_SKY_TREASURY stream with the following parameters:
    • usr: REWARDS_DIST_USDS_SKY
    • tot: 137,500,000 SKY
    • bgn: block.timestamp
    • tau: 182 days
    • cliff: none
    • manager: none.
  • Restrict the new stream, res: 1.
  • File the id of the newly created stream to the new REWARDS_DIST_USDS_SKY contract.
  • Set rewardsDistribution on REWARDS_USDS_SKY to the new REWARDS_DIST_USDS_SKY contract.

Init Unichain Native Bridge

If this executive proposal passes, then the Unichain Token Bridge for USDS and sUSDS will be initialized by calling TokenBridgeInit.initBridges using the following parameters.

Set l1BridgeInstance

Set l2BridgeInstance (Unichain Network)

Set cfg

Init Optimism Native Bridge

If this executive proposal passes, then the Optimism Token Bridge for USDS and sUSDS will be initialized by calling TokenBridgeInit.initBridges using the following parameters.

Set l1BridgeInstance

Set l2BridgeInstance (Optimism Network)

Set cfg

Deactivate SparkLend DDM

If this executive proposal passes, then The SparkLend Direct Deposit Module (DDM) Debt Ceiling will be deactivated. This is achieved through the following parameter changes:

Transfer Ownership of SPK Token to SPK Company Multisig

If this executive proposal passes, then ownership of SPK Token will be transferred to the SPK Company Multisig. This is achieved through the following actions:

Increase ALLOCATOR-SPARK-A Maximum Debt Ceiling

If this executive proposal passes, then the ALLOCATOR-SPARK-A Maximum Debt Ceiling (line) will be increased by 5 billion USDS from 5 billion USDS to 10 billion USDS. The Target Available Debt (gap) and Ceiling Increase Cooldown (ttl) parameters for ALLOCATOR-SPARK-A will remain unchanged, at 500 million USDS and 86,400 seconds respectively.

Launch Project Funding

If this executive proposal passes, then 5 million USDS will be distributed to the Launch Project at 0x3C5142F28567E6a0F172fd0BaaF1f2847f49D02F.

Delegate Compensation for April 2025

If this executive proposal passes, then a total of 26,267 USDS will be distributed as Aligned Delegate compensation for April 2025 as follows:

Delegate Amount (USDS) Address
BLUE 4,000 0xb6C09680D822F162449cdFB8248a7D3FC26Ec9Bf
Bonapublica 4,000 0x167c1a762B08D7e78dbF8f24e5C3f1Ab415021D3
Byteron 4,000 0xc2982e72D060cab2387Dba96b846acb8c96EfF66
Cloaky 4,000 0x9244F47D70587Fa2329B89B6f503022b63Ad54A5
JuliaChang 4,000 0x252abAEe2F4f4b8D39E5F12b163eDFb7fac7AED7
PBG 3,867 0x8D4df847dB7FfE0B46AF084fE031F7691C6478c2
WBC 2,400 0xeBcE83e491947aDB1396Ee7E55d3c81414fB0D47

Atlas Core Development Payments for May 2025

If this executive proposal passes, then a total of 77,584 USDS and 618,000 SKY will be distributed for Atlas Core Development funding.

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

Execute Spark Proxy Spell

If this executive proposal passes, then a Spark Proxy Spell will be executed at 0x3968a022D955Bbb7927cc011A48601B65a33F346 with the following contents.

Onboard Unichain to the Spark Liquidity Layer

Onboard Unichain to the Spark Liquidity Layer with the following addresses and parameters.

Addresses
Initial Rate Limits
PSM3
  • USDC deposit: 50 million max, 50 million slope per day.
  • USDC withdrawal: 50 million max, 50 million slope per day.
  • USDS deposit: Unlimited.
  • USDS withdrawal: Unlimited.
  • sUSDS deposit: Unlimited.
  • sUSDS withdrawal: Unlimited.
CCTP
  • Global: Unlimited.
  • Unichain to Mainnet: 50 million max, 25 million slope per day.
  • Mainnet to Unichain: 50 million max, 25 million slope per day.
Initial Liquidity Bridged to Unichain
  • USDS: 100 million USDS.
  • sUSDS: 100 million USDS worth of sUSDS.

Onboard OP Mainnet to the Spark Liquidity Layer

Onboard Optimism Mainnet to the Spark Liquidity Layer with the following addresses and parameters.

Addresses
Initial Rate Limits
PSM3
  • USDC deposit: 50 million max, 50 million slope per day.
  • USDC withdrawal: 50 million max, 50 million slope per day.
  • USDS deposit: Unlimited.
  • USDS withdrawal: Unlimited.
  • sUSDS deposit: Unlimited.
  • sUSDS withdrawal: Unlimited.
CCTP
  • Global: Unlimited.
  • OP Mainnet to Mainnet: 50 million max, 25 million slope per day.
  • Mainnet to OP Mainnet: 50 million max, 25 million slope per day.
Initial Liquidity Bridged to OP Mainnet
  • USDS: 100 million USDS.
  • sUSDS: 100 million USDS worth of sUSDS.

Adjust USDS Interest Rate Model

Update USDS Interest Rate Model on Mainnet as follows:

Adjust DAI Interest Rate Model

Update DAI Interest Rate Model on Mainnet as follows:

Reduce WBTC Liquidation Threshold

Reduce the WBTC Liquidation Threshold by 5 percentage points from 45% to 40%.

[Base] Spark USDC Morpho Vault - Increase cbBTC Pool Supply Cap

Increase cbBTC/USDC market (0x9103c3b4e834476c9a62ea009ba2c884ee42e94e6e314a26f04d312434191836) Supply Cap in the Spark USDC Morpho Vault on Base by 500 million USDC from 500 million USDC to 1 billion USDC.

Increase USDS Mint and USDC Swap Rate Limits

Increase the Mint and Swap Rate Limits for USDS and USDC as follows.

USDS Mint Rate Limits
  • Increase max by 300 million USDS from 200 million USDS to 500 million USDS.
  • Increase slope by 300 million USDS per day from 200 million USDS per day to 500 million USDS per day.
USDC Swap Rate Limits
  • Increase max by 300 million USDC from 200 million USDC to 500 million USDC.
  • Increase slope by 100 million USDC from 200 million USDC to 300 million USDC per day.

Onboard August PT-USDS to Morpho Spark DAI Vault

Onboard PT-USDS-14Aug2025 to the Morpho DAI vault with the following 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 DAI

Increase USDe Mint and Staking Rate Limits

Increase USDe mint and staking rate limits on the Spark Liquidity Layer on Mainnet as follows:

  • Minting USDe
    • Max amount: 250 million
    • Slope: 100 million
  • Burning USDe
    • Max amount: 500 million
    • Slope: 200 million
  • Depositing to sUSDe
    • Max amount: 250 million
    • Slope: 100 million
  • Initiating withdrawal cooldown from sUSDe
    • Max amount: unlimited
  • Withdrawing from sUSDe after cooldown
    • Max amount: unlimited

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.

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.

This is a Sky governance executive. Voting is only available on vote.sky.money

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