A massive $7.5 billion liquidity pool now connects to Berachain as Sky, formerly known as MakerDAO, unveiled Polaris, the first new “Star” in its autonomous agent network in two years. This deployment activates Sky’s substantial stablecoin reserves on a blockchain specifically designed to maximize liquidity, potentially transforming DeFi capital efficiency across both ecosystems.
The integration merges Sky’s USDS stablecoin infrastructure with Berachain’s Proof of Liquidity (PoL) consensus mechanism, creating what the project describes as a “fully autonomous liquidity system.” This marks a significant expansion of Sky’s cross-chain strategy, enabling its assets to interact with Berachain’s growing DeFi applications while preserving the security and governance structures that have made Sky one of DeFi’s largest protocols.
Sky’s Agent Framework Powers Autonomous Expansion
Polaris operates through Sky’s “Agent Framework,” a modular system allowing independent projects to tap into Sky’s liquidity without direct governance involvement. The framework consists of standardized “primitives” — building blocks that handle everything from token creation to cross-chain bridges.
“This is a great example of how fast it’s possible to move with the Sky Agent Framework when you have founders and capital,” Sky founder Rune Christensen stated on X. “It will be a good showcase of how much scale Sky can bring to the table to new and growing ecosystems.”
Polaris follows Spark, Sky’s first “Star” project launched two years ago, which has already accumulated over $5 billion in total value locked (TVL). The Ethereum Foundation recently deployed 20,000 ETH into Spark, signaling institutional confidence in Sky’s architecture.
The deployment activates multiple components of Sky’s primitive system, notably the “SkyLink Primitives” that enable bridging USDS to other blockchains and the “Allocation System Primitive” that allows automated deployment of USDS collateral into various opportunities.
Berachain’s Liquidity Model Creates New Incentives
Berachain’s core innovation, its Proof of Liquidity consensus mechanism, directly complements Sky’s stablecoin infrastructure. Unlike traditional blockchains, Berachain incentivizes users to provide liquidity to the network while keeping assets usable in DeFi protocols.
“Polaris taps into $7.5 billion of Sky ecosystem’s USDS to deploy capital into the Berachain ecosystem, combining one of DeFi’s most robust liquidity engines with Proof of Liquidity,” the Berachain Foundation announced on X.
The initial phase focuses on expanding USDS stablecoins cross-chain, enabling USDS holders to engage with Berachain’s DeFi offerings, including lending, trading, and yield farming. This creates new utility for USDS holders while potentially growing Berachain’s available liquidity.
Sky has evolved significantly since creating the DAI stablecoin (now USDS) in 2017 on Ethereum. The protocol maintains most of its infrastructure on Ethereum while strategically expanding to other chains through its primitive system.
According to Christensen, this deployment is just the beginning: “Polaris is the first Star to be announced since Spark was announced 2 years ago, but there will be a lot more coming this year!”
With DeFi protocols increasingly competing for liquidity across multiple blockchains, Sky’s model of autonomous, cross-chain capital deployment could provide a template for how established protocols can expand their reach without sacrificing decentralization or security.