What is Sky (SKY)?

Deep Dive

1. Heritage & Core Purpose

Sky Protocol is the final form of MakerDAO, representing a comprehensive upgrade rather than a simple rebrand. Its fundamental purpose is to operate as a decentralized, on-chain financial system that generates sustainable, risk-adjusted returns. It moves beyond being just a lending platform to function as a capital allocation network, bridging decentralized finance with traditional yield sources.

2. The USDS Stablecoin & SKY Governance

The ecosystem is anchored by USDS, the successor to the DAI stablecoin. USDS is a decentralized dollar designed to pay holders a variable yield via the Sky Savings Rate (SSR). The SKY token is the exclusive governance asset, acquired by upgrading from the legacy MKR token at a 1:24,000 ratio to broaden participation. SKY holders vote on protocol parameters, upgrades, and capital allocation.

3. Modular "Sky Stars" & RWA Focus

Sky scales through a modular architecture. Independent sub-DAOs called "Sky Stars" (like Spark) innovate and capture value, feeding it back to the core ecosystem. A significant portion of protocol capital is deployed into Real-World Assets (RWAs), such as tokenized U.S. Treasuries, generating institutional-grade yield and diversifying the system's revenue base.

Conclusion

Sky is fundamentally a community-governed DeFi ecosystem that combines a yield-bearing stablecoin with a scalable, modular structure for sophisticated capital allocation. How will its focus on RWAs and institutional adoption shape the next phase of decentralized finance?