Sky

Sky (SKY) is the governance token of Sky Protocol, the 2024 rebrand and overhaul of MakerDAO, giving holders a say over the on-chain system that issues the decentralized stablecoin USDS.

How USDS and the Sky Savings Rate work

The mechanics inherited from Maker remain the heart of it: USDS is created when borrowers lock collateral in smart contracts, staying overcollateralized so the stablecoin holds its dollar value without a central custodian. Where Maker used DAI and MKR, Sky uses USDS for stable savings and SKY for governance, and existing MKR can be upgraded into SKY. A Sky Savings Rate lets USDS holders earn, funded by protocol revenue from borrowing fees and collateral yield.

What holding and staking SKY gives you

SKY's value proposition is control plus a slice of the system's economics. Holders vote on collateral types, risk settings, and how surplus is used, and can stake SKY in the Staking Engine to help secure the protocol and earn rewards. Because the protocol earns real income — including from real-world-asset collateral and lending — SKY is closer to a claim on an operating balance sheet than a purely symbolic vote, though value reaches holders through governance-directed policy rather than automatic dividends.

The Endgame vision and stablecoin competition

Structurally Sky is pursuing an 'Endgame' vision of semi-independent units and cross-chain reach via SkyLink, meant to scale USDS beyond a single deployment. Its competition is the broader stablecoin field — centralized giants on one side and decentralized peers on the other — where USDS must defend share on trust, yield, and integrations rather than sheer size.

Balancing real revenue against collateral risk

The optimistic view is that Sky runs one of DeFi's few durable, revenue-generating stablecoin engines, and SKY concentrates governance over that cash flow. The cautious view flags reliance on real-world and centralized collateral that reintroduces off-chain counterparty and regulatory risk, plus the execution overhang of a complex rebrand and restructuring. SKY suits participants who want an active governance role in decentralized stablecoin infrastructure and understand that its worth tracks the health of USDS.

1. 1. Choose an exchange. Pick a reputable exchange that lists SKY — among the venues we rate highest are Binance, OKX and Kraken.
2. 2. Create & verify your account. Register, enable two-factor authentication, and complete identity verification (KYC).
3. 3. Deposit funds. Add money by bank transfer, card, or a stablecoin, depending on what the exchange supports in your region.
4. 4. Buy SKY. Search for SKY, choose a market or limit order, enter your amount, and confirm.
5. 5. Secure your coins. For long-term holdings, withdraw SKY to a self-custody wallet you control rather than leaving it on the exchange.

Compare venues in our independent exchange ratings. This is not financial advice.