Sky: everything you need to know about SKY

What is SKY?

SKY is the new name of MakerDAO, one of the largest and most influential projects in the world of DeFi. The platform was relaunched as part of founder Rune Christensen’s “Endgame” plan. With this rebrand, Sky aims to make DeFi more accessible, user-friendly and future-proof.

Sky replaces the well-known stablecoin DAI with USDS and the governance token MKR with SKY. With this, the project takes a major step toward a more modern ecosystem in which stablecoins, tokenized assets, and smart reward systems are central.

How does SKY work?

The heart of Sky remains largely the same as MakerDAO: users deposit crypto such as ETH as collateral in smart contracts and can generate USDS against it. USDS is pegged to the US dollar and is kept stable through overcollateralization and smart incentives.

In addition, SKY holders vote on important matters, such as which crypto can serve as collateral and how high the stability fee is.

The SKY token

The SKY token replaces the old MKR token at a ratio of 1:24,000. This has made governance more accessible to more users. SKY holders have voting rights, access to reward programs, and can participate in the Sky Savings Rate.

Alongside SKY, USDS plays a central role: it is the new stablecoin within the ecosystem, backed by both crypto and traditional assets.

The technology behind SKY

Sky runs entirely on the Ethereum blockchain and uses smart contracts to keep the system transparent and reliable. Innovations such as SkyLink (for faster transactions via Ethereum Layer 2), zero-knowledge proofs (for privacy), and new compliance tools enhance robustness and usability.

The SKY ecosystem

The Sky ecosystem consists of several building blocks:

• Sky Stars: standalone projects within the network, such as Spark (a popular DeFi-lending app).
• Sky Savings Rate: a module that allows you to earn interest on your USDS.
• Sky Token Rewards: rewards in SKY for users who provide liquidity.
• Sky Atlas: the governance handbook that is further developed together with the community.

Advantages of SKY

These are the advantages of SKY:

• Decentralized governance via the community
• Stable stablecoin (USDS) with strong underlying backing.
• Innovative features such as SkyLink and Sky Stars.
• More accessible governance through the redenomination of MKR to SKY

Disadvantages of SKY

These are the disadvantages of SKY:

• Complex ecosystem that can intimidate beginners.
• Depending on Ethereum (high costs on busy networks).
• Regulatory uncertainty around stablecoins and DeFi.

Who is the founder of SKY?

Sky was founded by Rune Christensen, who was also the driving force behind MakerDAO. He launched Sky as part of the “Endgame” strategy to scale and future-proof DeFi.