Yeliz Akmaca 
Sky Protocol, formerly known as MakerDAO, is an innovative decentralized finance (DeFi) project built on the Ethereum blockchain. Its governance token, Sky (SKY), plays a key role in enabling users to mint decentralized and trustless stablecoins such as the well-known Dai and the newly introduced USDS—both pegged to the US dollar using collateralized assets.
From MakerDAO to Sky: A Strategic Rebrand
The story of Sky Protocol began in 2015 as MakerDAO. Originally operating under the Single Collateral Dai (SAI) model, the platform evolved into a Multi-Collateral Dai (MCD) system that accepted a broader range of assets. By November 2019, MakerDAO had fully transitioned to a decentralized governance structure. In 2023, the project took a major leap by rebranding to “Sky Protocol”—a change reflecting its expanded vision, including Real World Asset (RWA) integrations beyond crypto.
Sky aims to create a secure and decentralized ecosystem where stablecoins are backed by transparent, asset-based systems integrating both DeFi and traditional finance.
How Sky Works: Collateral Vaults & Stablecoin Issuance
Sky Protocol allows users to deposit approved collateral (like ETH or RWAs) into smart contract-based Vaults to mint stablecoins (Dai or USDS). Also this process is entirely automated and transparent via smart contracts.
Key Components of Sky Protocol:
- Sky Vaults: Smart contracts that enable stablecoin minting against collateral.
- RWA Vaults: Advanced vaults that accept tokenized real-world assets (e.g., real estate, bonds), using RWA tokens and oracles for valuation.
- External Actors: Includes Keepers (for arbitrage and price stability), Oracles (price feeds), and Emergency Oracles (able to trigger shutdown).
- DSR & SSR: Dai and USDS holders can earn yield by locking their tokens in savings contracts. These rates are governed by protocol governance.
- Liquidation Process: When collateral value drops below a threshold, the protocol auctions the collateral via an Automatic Liquidation Mechanism.
Key Features of Sky Protocol
Sky ensures the stability and transparency of its stablecoins through several innovations:
- Multi-Collateral Support: Accepts ETH, various ERC-20 tokens, and RWAs.
- Soft USD Peg: Dai and USDS are softly pegged to USD for a reliable store of value and medium of exchange.
- Decentralized Governance: SKY holders control protocol changes via a dual-layer system—Governance and Executive Votes.
- Transparency & Non-Custodial Vaults: All transactions are visible on Ethereum, and users retain control of their assets.
- Advanced Security Layers: Systems like the Oracle Security Module (OSM), Governance Security Module (GSM), and Emergency Shutdown protect the protocol.
Sky Ecosystem & Use Cases
Sky Protocol is not just technical infrastructure; it’s a living, modular ecosystem accessed through various decentralized frontends and applications.
Ecosystem Elements:
- Stablecoins: DAI, USDS
- Governance Token: SKY
- Community Frontends: Oasis Borrow, SummerFi, instadapp, Zerion, MyEtherWallet
- Stars: Independent teams managing RWA operations
- Sky Atlas: A governance and system architecture framework
SKY Token Utilities:
- Voting: Used for governance proposals and parameter updates
- System Backstop: Used to cover liquidation shortfalls
- Store of Value: Represents community ownership and long-term value
Team & Governance
The protocol is led by seasoned DeFi experts:
- Rune Christensen: Founder
- Mariano Conti: Head of Smart Contracts
- Gustav: Advisor
Backers & Partners: The project is developed in collaboration with the original Maker Foundation developers, independent contributors, and third-party custodians in the RWA ecosystem. Investor names are not disclosed in the whitepaper.
Tokenomics
- Total Supply: 23.46B SKY
- Circulating Supply: 21.28B SKY
Roadmap Highlights
- 2022: Launched Web3 fund platform v1.0, broker partnerships with Gate and Binance
- 2023: Reached 50K users, launched DAO, partnered with TRON and ChainGPT
- 2024 (Planned): TGE, Telegram Mini App, DEX/CEX integration, algo trading, SDK/API tools
- 2025 (Target): AI tech, NFT management, and crypto cashback features
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