MakerDAO (Sky)
score
Fees: stability fees on borrowing + DSR/savings rate
MakerDAO/Sky fits users who value a proven, cycle-tested decentralized stablecoin with real backing and yield. The caveat is growing dependence on centralized collateral and a complicated rebrand. This is not financial advice.
What MakerDAO (Sky) Is
MakerDAO is the decentralized protocol behind DAI, one of the oldest and most resilient crypto stablecoins, and it now also operates under the Sky brand with a related token and the USDS stablecoin. Launched in 2017, it lets users lock collateral into smart contracts to mint DAI, a soft-pegged dollar token backed by that collateral rather than by a single company's bank account. Governance and key parameters are decided by token holders. It also offers a savings rate that pays yield to holders who deposit the stablecoin.
A Cycle-Tested Stablecoin
Its standout metric is track record, scored at 9, alongside 8.5 for both security and adoption. DAI has survived Black Thursday in 2020 and multiple market cycles with its liquidation machinery continuing to function, which is a rare thing for an on-chain stablecoin. Security has held up across audits and years of live operation, and DAI is one of the most widely integrated stablecoins in DeFi. Few protocols in this category have been stress-tested for as long.
Stability Fees and the Savings Rate
The economic model has two sides. Borrowers who mint DAI against collateral pay a stability fee, effectively the interest rate on that debt, set by governance per collateral type. On the other side, the savings rate (historically the DSR) lets holders earn yield on deposited stablecoins, passing protocol revenue back to users. This real-yield backing is part of why tokenomics scores a respectable 7.5 rather than lower.
Collateral and the Sky Rebrand
The caveats are real and partly a product of success. To scale and generate yield, the system has come to rely heavily on centralized and real-world-asset collateral, including USDC, which dilutes the pure decentralization that was DAI's original selling point. The Sky rebrand, a new token, and the USDS stablecoin have added complexity and some user confusion, and governance itself is intricate and has faced concentration and contributor disputes. Transparency scores 7.5, reflecting that complexity.
Who It's For
MakerDAO/Sky fits users who value a proven, cycle-tested decentralized stablecoin with genuine collateral backing and a native savings yield. The trade-offs to weigh are the growing dependence on centralized collateral and the added complexity of the rebrand. This is not financial advice; anyone using DAI or USDS should understand what actually backs the peg and how governance decisions can change it.
Overall 8.3 / 10 — the weighted average of the criteria above. How we score →
- + Issuer of DAI, one of the longest-lived and most resilient decentralized stablecoins
- + Survived Black Thursday 2020 and multiple cycles with functioning liquidations
- + Real-yield backing and a savings rate that passes revenue to holders
- + Long, well-documented governance history
- − Heavy reliance on centralized/RWA collateral (incl. USDC) dilutes decentralization
- − The Sky rebrand, new token, and USDS added complexity and user confusion
- − Governance is complex and has faced concentration and contributor disputes
Is DAI safe and fully backed?
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DAI is collateral-backed and has held its peg through multiple crises since 2017, including Black Thursday 2020, which is why we score MakerDAO's track record a 9. The main caveat is that a significant share of its backing now comes from centralized and real-world assets like USDC. This is not financial advice.
What is the difference between MakerDAO and Sky?
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Sky is a rebrand of MakerDAO that introduced a new token and the USDS stablecoin alongside the existing DAI system. The underlying protocol lineage is the same, but the rebrand added complexity and some user confusion, which factors into our transparency score.
What fees does MakerDAO charge?
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Borrowers who mint DAI pay a stability fee, essentially interest on their collateralized debt, set by governance per collateral type. Separately, holders can earn the protocol's savings rate on deposited stablecoins, which passes revenue back to users.
How do you mint DAI?
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You lock an approved collateral asset into the protocol's smart contracts and mint DAI against it, keeping enough collateral to avoid liquidation. To close the position you repay the DAI plus the accrued stability fee and unlock your collateral.
Is MakerDAO a good DeFi protocol?
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We rate it 8.3 overall, one of the more proven names in the defi-protocols category given DAI's resilience across cycles. The reliance on centralized collateral and the complexity of the Sky rebrand are the main reasons it doesn't score higher.