Sky Protocol (stUSDS)

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.

Token Functionalities

Asset Ownership

  • On-Chain Asset Title/Pool Share (Weak)

    Right to redeem or exchange stUSDS for USDS through the token’s on-chain ERC-4626 mechanics, subject to pool economics, utilisation, liquidity and risk conditions. Strength is Weak because redemption exists, but the position is a risk-capital claim whose exit value and availability can be affected by pool conditions or loss events.

Collateral

  • Risk-Underwriting Stake

    Right to underwrite SKY-backed borrowing and protocol-loss risk in exchange for premium or yield, with capital exposed to bad debt, write-downs or governance-defined loss events. The right is distinct from passive savings because the holder supplies risk capital rather than merely receiving a surplus distribution.

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>