Phoenix Labs has proposed on the Sky (formerly MakerDAO) forum to discontinue the use of sUSDS and sDAI as collateral on SparkLend and to update the PYUSD interest rate model. The firm noted that the historical usage of sUSDS and sDAI as collateral has been low. Despite considering Sky, DAI, and USDS to be very low-risk, Phoenix Labs anticipates that removing these less-utilized collateral options will be welcomed by institutional users and contribute to long-term market growth.