Sky (formerly MakerDAO) has announced its integration with Berachain, marking a major step in strengthening liquidity within the DeFi ecosystem. This collaboration aims to incorporate Sky’s USDS stablecoin into Berachain’s infrastructure, enabling greater liquidity across various DeFi protocols.
Building an Innovative Liquidity System with Polaris
At the core of this partnership is Polaris, one of Sky’s latest ecosystem products, which will be onboarded onto Berachain. Berachain, a high-performance EVM-compatible blockchain using Proof of Liquidity (PoL) consensus, allows users to provide liquidity to the network while still utilizing their assets in DeFi protocols.
Sky aims to establish a fully autonomous liquidity system through this integration. Sky’s founder, Rune Christensen, emphasized the significance of this collaboration, stating, “This will showcase how much influence Sky can bring to emerging ecosystems.”
Expanding USDS Cross-Chain and Enhancing DeFi Participation
The initial phase will focus on expanding USDS stablecoin across multiple chains, allowing USDS holders to participate in Berachain’s DeFi services such as lending, trading, and yield farming.
The Berachain Foundation highlighted the scale of this integration, stating, “Polaris will channel $7.5 billion worth of capital from the Sky ecosystem into Berachain, combining one of DeFi’s most powerful liquidity engines with Proof of Liquidity.”
The Sky Ecosystem and Agent Framework
The Sky ecosystem revolves around the USDS stablecoin and SKY governance token, which serve as the successors to MakerDAO’s DAI and MKR tokens. Within this ecosystem, the Agent Framework plays a critical role in supporting decentralized projects, referred to as “Stars”, by providing essential infrastructure for tokens and decentralized applications (dApps).
Originally launched on the Ethereum blockchain, Sky gained recognition in 2017 with the creation of DAI stablecoin (now USDS)—one of the first decentralized, USD-pegged stablecoins.
