Key highlights
SKY and USDS are the native tokens of the decentralized Sky Protocol, representing enhanced versions of MKR and DAI tokens from MakerDAO.
USDS is a soft-pegged stablecoin backed by collateral assets. Its value is maintained at around one US dollar.
On the platform, users can trade, save, upgrade tokens, stake SKY, and earn rewards while maintaining full control over their funds.
Sky.money is a non-custodial gateway providing 24/7 access to Sky Protocol features: trading, savings, staking, and protocol governance.
What is Sky
Sky (formerly MakerDAO) is a decentralized finance (DeFi) platform that offers a more scalable, user-friendly, and community-governed alternative. Sky builds on the legacy of MakerDAO: implementing enhanced native tokens, new features, and a simplified governance system focused on sustainability and usability.
At the core of the protocol are two key tokens: USDS (a stablecoin pegged to the US dollar) and SKY (a governance token). Sky.money serves as the primary gateway for interacting with the protocol and gives users full control over their assets.
How Sky works
Sky Protocol provides a comprehensive range of financial services—from trading to savings and rewards—based on a fully open and transparent infrastructure. The protocol operates through decentralized liquidity pools, a stablecoin system, and decentralized governance. This completely eliminates intermediaries: users make their own decisions and control their capital.
SKY and USDS are the two native tokens of Sky Protocol:
USDS: a stablecoin of the decentralized Sky Protocol and an improved version of DAI. USDS supports over-collateralization and has a soft peg to the US dollar, maintaining a value of approximately one dollar.
SKY: the native governance token of Sky Protocol and the Sky ecosystem, as well as an enhanced version of the MKR token from MakerDAO. SKY is used in decentralized governance, staking, and rewarding active participants in the ecosystem.
Access to Sky Protocol via Sky.money
Sky.money is a non-custodial gateway that connects users with the Sky Protocol. Sky.money enables trading of popular coins and tokens from the Sky ecosystem. Traders can exchange DAI for USDS and MKR for SKY, as well as accumulate capital and earn platform rewards. Additionally, users can participate in the Sky Savings Rate (SSR) program and earn additional USDS and SKY token rewards through the Sky.money application.
The application allows:
Upgrade MKR tokens to SKY at a ratio of 1 MKR to 24,000 SKY.
Exchange USDC, USDT, ETH, or USDS directly for SKY.
Earn rewards in SKY for providing USDS in the Sky rewards module.
Stake SKY tokens in the Sky Protocol for rewards.
Earn USDS for staking SKY.
Additionally, SKY can be purchased on cryptocurrency exchanges such as Binance.
Sky Savings Rate (SSR) system
Sky Savings Rate is an automated system that allows users to earn USDS. When USDS is deposited in the SSR module, users receive sUSDS tokens, which represent their assets in staking and yield. USDS is added to the pool every few seconds according to the current SSR rate, resulting in an increase in the value of sUSDS.
sUSDS can be exchanged for original USDS (plus accumulated rewards) at any time. The SSR rate depends on decisions made during decentralized on-chain voting in the Sky ecosystem governance community. Smart contracts convert USDS and sUSDS, maintaining the value at the dollar level without fees during the exchange.
Sky Token Rewards (STR) module
USDS holders can participate in the Sky Token Rewards module to receive SKY governance tokens as rewards. The deposited USDS and the received rewards are protected by non-custodial smart contracts to prevent external control over the assets. Rewards are distributed based on the user's share in the USDS rewards pool and may vary depending on the pool size and issuance rates. By holding USDS and earning rewards in SKY, users support ecosystem projects while retaining full control over their funds.
SkyLink bridge
SkyLink is a bridge that connects Sky with several second-layer networks such as Base, Arbitrum, Optimism, and Unichain. SkyLink enables the movement of USDS and SKY tokens, as well as the use of features like Sky Savings Rate without high gas fees and lengthy transaction processing. SkyLink simplifies and reduces the cost of interacting with the Sky ecosystem: it allows for more efficient capital accumulation, trading, and earning rewards across different blockchains.
Sky Ecosystem and Sky Stars
The Sky ecosystem is a community-governed network of decentralized projects known as Sky Stars. They promote rapid innovation and growth within the overarching structure of Sky. Each project may have its own governance tokens, treasury, and governance system, but Sky Stars still advance the common goals of the Sky ecosystem. The first official Sky Stars project to be closely integrated into the Sky ecosystem is the on-chain asset distributor Spark. It places stablecoin liquidity in DeFi, CeFi, and real assets.
In conclusion
Sky Protocol marks a significant step in the evolution of decentralized finance. The MakerDAO ecosystem has transformed into a more scalable, user-friendly, and controlled platform. With the native tokens SKY and USDS, as well as the innovative services Sky.money, SkyLink, and Sky Stars, the protocol expands access to DeFi tools and creates more reliable non-custodial financial products.
