Sky

SKY is the governance token of Sky, the protocol formerly known as MakerDAO, which issues the USDS and DAI dollar stablecoins.

Sky is the new name of MakerDAO, a decentralised finance (DeFi) lending protocol on Ethereum. It issues dollar stablecoins: the original DAI and, since 18 September 2024, USDS. SKY is its governance token. It replaced the older MKR token: each MKR can be upgraded to 24,000 SKY. MKR not upgraded by 18 September 2025 faces a 1% penalty that grows by 1% every three months. Governance moved to SKY in May 2025.

About 23.46 billion SKY exist; new SKY is created when MKR is upgraded. SKY holders vote on the protocol's rules, such as interest rates and how its surplus is used. Holders can also lock SKY in the Staking Engine. There they earn staking rewards, delegate their votes and can borrow USDS against the locked SKY.

The protocol earns mostly from lending. Borrowers pay fees on loans backed by crypto such as ETH and WBTC. Agents such as Spark and Grove put Sky's money into tokenised US Treasuries and institutional credit. Reserves in USDC also earn a return. In the first half of 2026 gross revenue was $231.66 million. Part of it pays the Sky Savings Rate to USDS holders who deposit into sUSDS (3.75% a year at the time of writing). What is left after costs buys back SKY, pays staking rewards or goes into reserves, in a split set by governance.

No single company controls Sky: SKY holders decide changes by on-chain vote. Rune Christensen co-founded MakerDAO. Sky Frontier Foundation supports the ecosystem and publishes its reports. In June 2026 about $10 billion of USDS was in circulation, backed by about $12.3 billion of collateral.