Sky (SKY), launched in August 2024 as a rebrand of Maker (MKR), is the governance token of the Sky Ecosystem, a decentralized finance (DeFi) protocol built on Ethereum. Formerly MakerDAO, the Sky Ecosystem powers the USDS stablecoin (rebranded from DAI), offering a decentralized, collateral-backed stablecoin pegged to the USD. SKY enables holders to govern the protocol, manage collateral types, set risk parameters, and earn staking rewards through Sky Token Rewards. The ecosystem aims to scale DeFi accessibility with modular “Star” sub-DAOs like Spark.

Key Features

  • Governance: SKY holders vote on protocol upgrades, collateral policies, and risk settings, steering the Sky Ecosystem’s evolution.
  • USDS Stablecoin: Powers the USDS stablecoin, with $5.6 billion in circulation, used for lending, borrowing, and DeFi integrations.
  • Sky Stars: Modular sub-DAOs (e.g., Spark for lending) enhance scalability and specialized DeFi services.
  • Staking Rewards: Holders can stake USDS to earn SKY, Chronicle Labs points, and sub-DAO tokens like SPK, retaining asset control.

SKY Token

  • Purpose: Used for governance, staking rewards, and accessing Sky Token Rewards, incentivizing participation.
  • Supply: Circulating supply of ~21 billion SKY, with no fixed cap due to staking emissions.
  • Price (June 2025): ~$0.0047 USD (BTC 0.000068126), up 7.2% in 24 hours and 15.3% in 7 days, with a market cap of ~$318.6 million (ranked #67).
  • Contract Address: 0x56072c95faa701256059aa122697b133aded9279 (Ethereum, addable to MetaMask).

Who Are the Founders of Sky?

Sky inherits the legacy of MakerDAO, founded by Rune Christensen in 2014. Christensen, a DeFi pioneer, envisioned a decentralized stablecoin system, leading to DAI and later USDS. The rebrand to Sky, announced in August 2024, reflects the “Endgame” plan to scale governance and accessibility through sub-DAOs. The Sky Ecosystem is now community-governed, with Christensen and the MakerDAO core team guiding the transition.

What Makes Sky Unique?

Sky stands out for its robust DeFi infrastructure and innovative governance model:

  • USDS Stablecoin: A decentralized, USD-pegged stablecoin backed by over-collateralized assets like ETH, with $5.6 billion in TVL.
  • Endgame Upgrade: Introduces modular sub-DAOs (e.g., Spark for lending) and protocol-controlled liquidity, ensuring instant scale without relying on external TVL.
  • Governance Flywheel: SKY, USDS, and sub-DAO tokens (e.g., SPK) form a self-reinforcing economic loop, enhancing protocol resilience.
  • Scalability: Over 43% of MKR tokens upgraded to SKY by June 2025, signaling strong community adoption.

Sky’s focus on decentralized governance and stablecoin scalability positions it as a DeFi leader, competing with protocols like Aave and Compound.

Sky Network Upgrades (2025)

  • Endgame Plan (Ongoing): Launched in 2024, this restructures MakerDAO into the Sky Ecosystem, introducing USDS, SKY, and sub-DAOs like Spark. It emphasizes modular governance and on-chain yield.
  • Sky Token Rewards (Q2 2025): Stakers of USDS earn SKY, SPK, and Chronicle Labs points, boosting engagement without asset custody loss.
  • Protocol Liquidity: Sky’s stablecoin reserves provide instant liquidity for new products, reducing reliance on mercenary capital.
  • Community Sentiment: X posts highlight bullish sentiment, citing SKY’s 10%+ price rise and staking incentives as growth drivers.

How Is Sky Secured?

Sky leverages Ethereum’s security and its own governance mechanisms:

  • Ethereum PoS: Secured by Ethereum’s proof-of-stake, with validators staking ETH to confirm transactions.
  • Over-Collateralization: USDS is backed by assets like ETH at 150%+ collateral ratios, ensuring stability.
  • Governance: SKY holders vote on risk parameters and collateral types, decentralizing protocol management.
  • Sub-DAO Security: Spark and other sub-DAOs inherit Ethereum’s security while adding specialized governance layers.

Conclusion

Sky (SKY) is a cornerstone of the Sky Ecosystem, powering decentralized governance and the USDS stablecoin. Its Endgame upgrade, modular sub-DAOs, and staking rewards position it as a DeFi innovator.

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