Sky Protocol (SKY)

System: Sky Protocol — Money and Payments

Sky Protocol is an Ethereum-based stablecoin and collateralised credit system. USDS is the primary dollar-referenced stablecoin; DAI is the legacy stablecoin linked through conversion and integrations; sUSDS is the transferable savings position; stUSDS is the transferable risk-capital position funding SKY-backed borrowing; and SKY is the governance, value distribution and collateral token. Founded as MakerDAO in 2015 and rebranded to Sky, the boundary includes issuance, accounting, vault lending, savings, staking, liquidation, governance, oracle inputs, real-world-asset arrangements and approved Sky Agent capital-allocation roles. Sky.money and third-party vault interfaces are excluded where they are non-custodial or external access layers rather than privileged protocol components.

Market Data

Price$0.055309
Market Cap$1.29B
Fully Diluted Valuation$1.30B
30d Change-28.66%
365d Change-33.29%

Token Functionalities

Collateral

  • Stablecoin-Reserve Asset (Weak)

    Right to deposit or stake SKY as backing for USDS borrowing, with exposure to loss or liquidation if collateral value declines.

Governance

  • Process and Meta Parameter Control (Unilateral)

    Right to modify on-chain governance process and meta-parameters, including governance-module settings such as execution delay, authority and related procedural controls. Strength is Unilateral where the decision applies to governance-module parameters that are themselves changed through the protocol’s on-chain execution path.

  • Treasury Control (Partial)

    Right to direct, allocate, invest, route or burn protocol-controlled surplus, reserves and treasury-like assets. Strength is Partial because SKY governance can control on-chain surplus and reward-routing mechanisms, but some treasury or reserve activity may rely on approved off-chain entities, custodians, counterparties or capital-allocation mandates for implementation.

  • Product/Service Line Decisions (Partial)

    Right to approve, direct or retire customer-facing Sky product and service deployments within the system’s declared scope. Strength is Partial because SKY governance can approve product, market, deployment or mandate decisions, but delivery may depend on operational execution by appointed participants, third-party integrations or off-chain entities.

  • Economic Design/Parameter Control (Partial)

    Right to set or amend Sky Protocol economic design and parameters, including stability fees, savings rates, borrowing terms, collateral and liquidation parameters, surplus routing, reserve allocation and reward economics. Strength is Partial because SKY governance controls important on-chain economic settings, but some high-impact economic outcomes depend on off-chain, real-world-asset or Sky Agent execution.

  • Technical Parameter Control (Unilateral)

    Right to approve or implement core on-chain technical changes, contract permissions and protocol architecture updates through the governance execution process. Strength is Unilateral, where scoped to executable on-chain changes that can be passed through Chief V3, scheduled through Pause and implemented through authorised Spells without discretionary off-chain refusal.

  • Actor Set Permissioning (Partial)

    Right to appoint, authorise, remove or re-weight privileged actors and modules, including authorised protocol modules, oracle roles, Emergency Oracle roles, real-world-asset counterparties and Sky Agent or capital-allocation roles. Strength is Partial because governance can approve or configure actor sets, while appointed participants or entities may retain role-gated execution authority.

Value Distribution

  • Buyback Entitlement (Discretionary but Regular)

    Right to benefit from SKY acquired by the system and redistributed through buyback and staking-reward mechanisms. Strength is Discretionary but Regular because a repeatable programme exists, but allocations can be adjusted by governance and are not guaranteed by an immutable formula or binding obligation that prevents unilateral change.

System Attributes

Operating Model

<p>On-chain,&nbsp;Ethereum&nbsp;smart&nbsp;contracts&nbsp;coordinate&nbsp;stablecoin&nbsp;issuance,&nbsp;vault&nbsp;accounting,&nbsp;collateral&nbsp;management,&nbsp;savings&nbsp;mechanics,&nbsp;staking,&nbsp;liquidations,&nbsp;governance&nbsp;execution&nbsp;and&nbsp;protocol&nbsp;surplus&nbsp;accounting.&nbsp;Off-chain,&nbsp;the&nbsp;system&nbsp;relies&nbsp;on&nbsp;material&nbsp;operational&nbsp;inputs&nbsp;for&nbsp;real-world-asset&nbsp;arrangements,&nbsp;custody,&nbsp;legal&nbsp;structures,&nbsp;valuation,&nbsp;monitoring&nbsp;and&nbsp;capital-allocation&nbsp;execution&nbsp;through&nbsp;approved&nbsp;Sky&nbsp;Agent&nbsp;or&nbsp;counterparty&nbsp;roles.&nbsp;These&nbsp;off-chain&nbsp;components&nbsp;are&nbsp;not&nbsp;merely&nbsp;support&nbsp;functions&nbsp;because&nbsp;they&nbsp;can&nbsp;affect&nbsp;the&nbsp;system’s&nbsp;collateral&nbsp;base,&nbsp;asset&nbsp;deployment,&nbsp;risk&nbsp;profile&nbsp;and&nbsp;ability&nbsp;to&nbsp;deliver&nbsp;parts&nbsp;of&nbsp;the&nbsp;stablecoin&nbsp;and&nbsp;credit&nbsp;product.</p>

Value Creation

<p>On-chain&nbsp;value&nbsp;is&nbsp;created&nbsp;through&nbsp;collateral-backed&nbsp;stablecoin&nbsp;issuance,&nbsp;vault&nbsp;borrowing,&nbsp;liquidation,&nbsp;savings-rate&nbsp;mechanics,&nbsp;staking&nbsp;and&nbsp;liquidity&nbsp;conversion&nbsp;between&nbsp;supported&nbsp;stablecoin&nbsp;instruments.&nbsp;Users&nbsp;and&nbsp;borrowers&nbsp;create&nbsp;demand&nbsp;by&nbsp;holding,&nbsp;exchanging,&nbsp;saving&nbsp;or&nbsp;borrowing&nbsp;against&nbsp;collateral&nbsp;through&nbsp;protocol&nbsp;contracts.&nbsp;Off-chain&nbsp;value&nbsp;is&nbsp;created&nbsp;where&nbsp;real-world-asset&nbsp;and&nbsp;capital-allocation&nbsp;components&nbsp;deploy&nbsp;reserves&nbsp;or&nbsp;collateral&nbsp;through&nbsp;legal,&nbsp;custody,&nbsp;counterparty&nbsp;and&nbsp;strategy&nbsp;arrangements.&nbsp;These&nbsp;off-chain&nbsp;components&nbsp;contribute&nbsp;to&nbsp;the&nbsp;productive&nbsp;activity&nbsp;behind&nbsp;some&nbsp;yield,&nbsp;collateral&nbsp;and&nbsp;reserve-management&nbsp;outcomes,&nbsp;while&nbsp;the&nbsp;core&nbsp;stablecoin,&nbsp;lending&nbsp;and&nbsp;accounting&nbsp;functions&nbsp;remain&nbsp;enforced&nbsp;by&nbsp;smart&nbsp;contracts.</p>

Value Capture

<p>Monetary&nbsp;value&nbsp;is&nbsp;captured&nbsp;and&nbsp;routed&nbsp;through&nbsp;protocol&nbsp;accounting,&nbsp;including&nbsp;stability&nbsp;fees,&nbsp;savings-rate&nbsp;costs,&nbsp;surplus&nbsp;and&nbsp;debt&nbsp;accounting,&nbsp;buybacks,&nbsp;reserve&nbsp;allocation&nbsp;and&nbsp;staking&nbsp;rewards.&nbsp;Stability&nbsp;fees&nbsp;and&nbsp;related&nbsp;system&nbsp;income&nbsp;are&nbsp;accounted&nbsp;through&nbsp;on-chain&nbsp;modules,&nbsp;while&nbsp;savings&nbsp;and&nbsp;staking&nbsp;distributions&nbsp;are&nbsp;routed&nbsp;through&nbsp;protocol-controlled&nbsp;mechanisms.&nbsp;The&nbsp;relevant&nbsp;captured&nbsp;value&nbsp;is&nbsp;therefore&nbsp;routed&nbsp;within&nbsp;the&nbsp;cryptoeconomic&nbsp;system&nbsp;and&nbsp;to&nbsp;on-chain&nbsp;participants&nbsp;rather&nbsp;than&nbsp;to&nbsp;a&nbsp;privileged&nbsp;off-chain&nbsp;equity&nbsp;or&nbsp;operating-company&nbsp;claim.</p>