Sky

Sky (SKY) is the governance token of Sky Protocol, a decentralized system that lets users trade, save and earn rewards while keeping control of their funds. Launched in 2024 as a rebrand and upgrade of the older Maker Protocol, Sky pairs SKY with a stablecoin called USDS. SKY holders govern the protocol and can stake to earn rewards. It currently ranks around 58 by market capitalization.

What is Sky?

Sky Protocol is the successor to MakerDAO's system. Its purpose is to give people a simple, secure way to hold a decentralized dollar and earn on it without surrendering custody. The protocol runs on smart contracts, so no middleman controls user funds. Two tokens anchor it: USDS, a stablecoin always intended to equal one US dollar, and SKY, the governance and staking token that acts as the key to both voting power and income within the ecosystem.

How does Sky work?

Automated smart contracts manage the system's stablecoin issuance and savings. USDS provides the stable, decentralized dollar users save and spend, while SKY carries governance rights. Holders can lock SKY in the Staking Engine, similar to an interest-bearing account, to help secure the network and earn rewards, and staking can also grant the ability to borrow USDS. A component called SkyLink is used to connect funds across different blockchains for faster, cheaper transactions.

Sky tokenomics and supply

SKY has a maximum supply near 23.46 billion tokens, with roughly 23.31 billion already circulating, so most of the supply is live. The token's design centers on governance and staking rather than scarcity-driven speculation. Its main utilities are:

• Governance voting on all major protocol changes
• Staking in the Staking Engine to secure the system and earn rewards
• Unlocking the ability to borrow the USDS stablecoin

SKY reached an all-time high near $0.100 and an all-time low around $0.036, reflecting how a high-supply governance token trades at low unit prices.

What is Sky used for?

Sky's distinguishing trait is that it has no CEO or traditional core investor group; the global community of SKY holders manages it. In practice SKY is used to vote on system parameters, to stake for rewards and network security, and to access USDS credit. Around it, USDS serves the everyday roles of saving, spending and earning in a decentralized way.

Where to buy Sky

SKY is listed on major exchanges, and holders migrating from the legacy Maker token have converted into it. Compare venues with our best crypto exchanges ranking, and for governance and staking participation, use a non-custodial wallet from our best crypto wallets ranking that connects to the protocol.

Is Sky a good investment?

Sky benefits from inheriting a battle-tested DeFi system and a clear governance-plus-yield model. The risks include smart-contract exposure, the challenge of maintaining USDS's peg, regulatory uncertainty around decentralized stablecoins, and volatility in the SKY token itself. Governance tokens derive value from the protocol's continued adoption. Do your own research and treat SKY as speculative. Not financial advice.