Sky isn’t just a new name in crypto—it’s the next iteration of a major DeFi legacy. Originally known as MakerDAO, the protocol behind one of the earliest decentralized stablecoins (DAI), Sky represents a reimagining of that system: more scalable, more intuitive, and fully governed by its community.
At the heart of this transformation are two native tokens: USDS, a stablecoin pegged to the U.S. dollar, and SKY, the governance token that powers participation and decision-making across the protocol. Sky’s goal? To make decentralized finance smarter, simpler, and more accessible to everyone—without handing over control.
How Sky Works: DeFi, But Smarter
Sky is built as an open, permissionless financial protocol. That means anyone can use it to trade, save, or earn rewards—no centralized gatekeepers required. Its architecture blends decentralized governance with a dual-token system that drives stability and incentives.
- USDS is the stablecoin of the Sky Protocol, backed by excess collateral and designed to stay closely pegged to the U.S. dollar. It’s effectively a next-gen version of DAI.
- SKY is the protocol’s native governance token, replacing MKR from MakerDAO. It’s used for voting, staking, and earning rewards within the ecosystem.
Together, these tokens power a growing suite of decentralized financial tools designed to give users more control, transparency, and utility.
Sky.money: Your Portal to the Ecosystem
Sky.money is the main hub for interacting with the protocol. It’s a non-custodial gateway—meaning you keep control of your assets—where users can upgrade legacy tokens (like MKR and DAI), trade across top stablecoins, and access savings and reward programs.
Key features include:
- Token Upgrades: Convert MKR to SKY (1:24,000 ratio) or DAI to USDS.
- Trading: Swap ETH, USDT, USDC, or USDS for SKY directly.
- Staking: Stake SKY to earn more SKY.
- Borrowing: Use SKY as collateral to borrow USDS.
- Rewards: Supply USDS to earn SKY via the Sky Token Rewards module.
SKY is also listed on major exchanges like Binance for those who prefer to buy it directly.
Passive Income: Sky Savings Rate (SSR)
The Sky Savings Rate (SSR) lets users earn yield on USDS. When you deposit USDS, you receive sUSDS, a token that grows in value as interest compounds. It’s a set-it-and-forget-it system where rewards accumulate automatically.
The SSR rate is dynamic and governed through decentralized on-chain voting. Smart contracts ensure seamless conversion between USDS and sUSDS, with no fees or slippage when you decide to withdraw.
Sky Token Rewards (STRs): Earn While You Hold
Holding USDS? You can opt into Sky Token Rewards, where you earn SKY tokens based on your share of the pool. The process is entirely non-custodial—your funds stay in your control, and rewards are distributed fairly based on how much USDS you supply.
It’s a way to earn governance power while staying invested in stable assets.
SkyLink:
SkyLink is Sky’s bridge to the broader crypto world. It connects to Layer-2 networks like Base, Arbitrum, Optimism, and Unichain, enabling cheaper, faster access to Sky features across chains. Whether you're saving, staking, or swapping, SkyLink minimizes fees and friction.
Sky Stars:
The Sky ecosystem isn’t just one platform—it’s a constellation of independent, community-governed projects called Sky Stars. These projects align with Sky’s values but operate autonomously, helping expand innovation across DeFi and real-world finance.
The first Sky Star, Spark, allocates stablecoin liquidity across DeFi, CeFi, and real-world asset markets.
Final Thoughts
Sky is more than a rebrand—it’s a redesign of what DeFi can be. By merging the proven foundation of MakerDAO with next-gen tools, user-focused design, and an expanding ecosystem, Sky is carving out a space for permissionless finance that’s powerful, practical, and inclusive.
With scalable governance, accessible savings tools, and robust multi-chain support, Sky isn’t just building another protocol—it’s building a movement.
