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 

1. 2022: Launched Web3 fund platform v1.0, broker partnerships with Gate and Binance 
2. 2023: Reached 50K users, launched DAO, partnered with TRON and ChainGPT 
3. 2024 (Planned): TGE, Telegram Mini App, DEX/CEX integration, algo trading, SDK/API tools 
4. 2025 (Target): AI tech, NFT management, and crypto cashback features 

Community & Social Channels 

• Website
• Twitter
• Discord

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The post What is Sky (SKY)? The Transformation from MakerDAO to Sky appeared first on Coin Engineer.