What is Sky Token (SKY)?

Decentralized finance (DeFi) has always promised a system where people, not institutions, are in control. But as DeFi has grown, it’s also faced big challenges: complicated governance, scattered tools, and protocols that struggle to scale. That’s where Sky (SKY) comes in. Evolving from MakerDAO, one of the earliest and most influential projects on Ethereum, Sky brings a new identity, a streamlined platform, and a governance token built to take DeFi into its next chapter.

What is Sky?

Sky represents the evolution of MakerDAO, one of DeFi’s foundational protocols on Ethereum, under a modern, simplified identity. The Sky Protocol reimagines decentralized governance and stablecoin systems through its native governance token SKY and companion stablecoin USDS, all accessed through the Sky.money interface.

On the Sky platform, users can:

Mint and manage USDS, a decentralized dollar-pegged stablecoin backed by crypto collateral.
Earn yield via the Sky Savings Rate (SSR) on USDS holdings.
Stake SKY to participate in governance, unlock reward programs, and help secure the system.
Engage with Stars, modular governance subDAOs that focus on specific initiatives like collateral onboarding or integrations.
Move assets cross-chain, with SKY and USDS designed for interoperability across ecosystems.

The History of Sky

Sky emerged from MakerDAO’s “Endgame” initiative, an ambitious multi-year plan to simplify governance and enhance decentralization. In September 2024, MakerDAO officially rebranded to Sky, migrating MKR to SKY and DAI to USDS at fixed rates, while preserving the optional ability to convert back.

SKY: The Native Token

SKY is the native token of the Sky protocol. Here’s what people can do with SKY:

Governance & Utility: SKY replaces MKR as the ecosystem’s core governance token. It grants holders the power to vote on key protocol changes, such as stability fees, collateral onboarding, and Star formation, and functions as a system backstop for undercollateralization.
Token Upgrade & Flexibility: Existing MKR holders can optionally upgrade to SKY at a 1 MKR → 24,000 SKY ratio. This is reversible, offering continuity and flexibility within the evolving protocol.
Earning & Reward Mechanisms: SKY holders gain access to rewards through mechanisms like Sky Token Rewards (STR), Seal Rewards, and the upcoming Activation Rewards. SKY also enables optional staking structures and supports savings via the Sky Savings Rate (SSR) using USDS

Buy & Sell Sky Token (SKY) at iTrustCapital

If you’re interested in buying and selling SKY, you can do so in a secure Premium Custody Account or a tax-advantaged Crypto IRA* at iTrustCapital.

Click here to open an account today!

*Some taxes may apply.

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