USDS Token USDS Token

$1.00 -0.07% USDS
Volume (24h)
$6,526
24h High
$1.00
24h Low
$1.00
Circulating Market Cap
$6,341,651,101
Total Market Cap
$6,341,651,101
Bid / Ask
$1.00 / $1.00
24h Trades
55

What is the Sky Protocol?

The Sky Protocol is a decentralised financial ecosystem that emerged from the rebranding of MakerDAO in 2024. It was designed to improve governance efficiency, enhance system resilience, and provide a more scalable structure for decentralised finance (DeFi). The protocol builds on the Maker framework, maintaining decentralised governance while introducing upgraded financial instruments, including the Sky Dollar (USDS) stablecoin and the SKY governance token.

The Sky ecosystem offers multiple functionalities, such as the Sky Savings Rate (SSR), Sky Token Rewards (STRs), Seal Rewards, and the upcoming Activation Rewards. Also, SkyLink provides a bridge between Ethereum Layer 1 and Layer 2 networks, enabling lower-cost transactions. The Sky Protocol also features Peg Stability Modules (PSMs) to stabilise USDS and governance mechanisms that enable community-driven decision-making.

The ecosystem includes independent decentralised projects called Sky Stars, such as Spark, which focuses on DeFi lending and borrowing solutions. The Sky Atlas serves as a foundational governance framework, documenting rules and processes for the ecosystem’s evolution.

Migration from MakerDAO to Sky Protocol

In August 2024, MakerDAO rebranded to the Sky ecosystem, bringing major upgrades to its decentralised financial infrastructure. The migration introduced USDS as the upgraded stablecoin for DAI holders, while MKR governance token holders had the option to convert to SKY at a rate of 1:24,000. This transition aimed to improve governance efficiency, broaden participation, and support the next phase of DeFi development.

What is Sky Dollar (USDS)?

Sky Dollar (USDS) is a decentralised stablecoin introduced by the Sky Protocol as an upgrade to DAI. Designed to maintain a soft peg to the U.S. dollar, USDS is backed by surplus collateral and serves as a core financial asset within the Sky ecosystem. It enables users to access a variety of decentralised financial services, such as savings, rewards, and governance participation, all while maintaining self-custody of their assets.

USDS stability is maintained through Peg Stability Modules (PSMs), allowing direct exchanges with stablecoins like USDC and USDT at predictable rates. This mechanism ensures minimal price volatility and enhances its reliability as a medium of exchange and store of value.

What is Sky Dollar (USDS) used for?

USDS serves several key functions within the Sky Protocol, including:

  • Savings and Interest Accumulation: Users can deposit USDS into the Sky Savings Rate (SSR) module, receiving sUSDS tokens that accrue additional USDS over time.
  • Earning Governance Rewards: By supplying USDS to the Sky Token Rewards module, users earn SKY governance tokens as rewards.
  • Trading and Conversion: USDS can be exchanged for USDC, USDT, ETH, and SKY through decentralised liquidity pools. Additionally, DAI holders can upgrade their tokens to USDS at a 1:1 ratio.
  • Participation in Governance: USDS plays a role in the governance of the Sky ecosystem, enabling users to influence protocol decisions through a decentralised onchain voting system.

Who created Sky Dollar (USDS)?

Sky Dollar (USDS) was developed by the team behind MakerDAO as part of the transition to the Sky Protocol. The rebrand, led by Rune Christensen and the MakerDAO community, was initiated to address governance challenges and improve the efficiency of decentralised decision-making. The Sky Protocol retains the foundational principles of MakerDAO while introducing new financial instruments and governance mechanisms to ensure sustainability and scalability.