The Sky ecosystem (formerly MakerDAO) has announced plans to implement a major technical update through the Osero Spell on November 19, 2026. This proposal aims to bridge the liquidity layers between the Ethereum mainnet and the Base Layer 2 network. A central component of this integration is the adoption of Circle’s Cross-Chain Transfer Protocol (CCTP), which will facilitate the native movement of USDC between the two chains. Additionally, the upgrade will integrate a specialized USDC Prime Vault managed by the risk management firm Gauntlet, enhancing capital efficiency and yield opportunities within the ecosystem.
CCTP Integration and Liquidity Synchronization
The Osero upgrade introduces a series of seven strategic adjustments designed to create a seamless liquidity corridor. By leveraging Circle’s CCTP, Sky moves away from traditional lock-and-mint bridge models, instead utilizing a burn-and-mint mechanism to ensure that users receive native USDC on the destination chain. This approach reduces fragmentation and mitigates the security risks often associated with wrapped assets.
Specific parameters for these transfers include:
- Enabling CCTP functionality on both Ethereum and Base.
- Setting a cross-chain USDC transfer limit of 10 million USDC, with a daily replenishment rate of 50 million USDC in both directions.
- Implementing a robust permission management mechanism on the Base side to secure protocol operations.
- Conducting a 1,000 USDS test round-trip to verify configuration stability prior to full activation.
Expansion of Yield Strategies with Gauntlet
A significant aspect of the proposal is the integration of the Osero x Gauntlet USDC Prime Vault on the Base network. Built on the Morpho Vault V2 architecture, this vault is curated by Gauntlet to optimize risk-adjusted returns. The vault will initially be configured with a deposit rate limit of 15 million USDC, which replenishes at a rate of 10 million USDC per day.
Gauntlet curates and manages the USDC Prime strategy, providing ongoing risk assessment, strategy calibration, and liquidity oversight to ensure security and sustainable yield.
This integration allows the Sky protocol to deploy idle stablecoin liquidity into high-liquidity lending markets, primarily those backed by ETH and BTC collateral. The move follows Sky’s broader strategy to expand its presence across the Ethereum scaling landscape while maintaining rigorous risk standards.
The upcoming Osero Spell represents a pivotal step in Sky's multi-chain roadmap, synchronizing assets across the Ethereum and Base ecosystems. By combining Gauntlet’s risk management expertise with Circle’s native cross-chain infrastructure, the protocol seeks to increase the utility and accessibility of its stablecoin assets. Stakeholders in the Sky ecosystem are expected to monitor the execution of these governance actions on November 19, which will formally activate these new liquidity and vault functionalities.
Frequently Asked Questions
Quick answers to the most common questions about this topic.
For educational purposes only. Nothing here constitutes financial or investment advice. Crypto markets are highly volatile — always DYOR before making any decisions.
Fact-checked per our editorial policy. We maintain strict independence from advertisers. Spot an error? Let us know.