What is Sky?

Sky Protocol, launched in 2024, serves as an upgraded version of the Maker Protocol. The system operates using a stablecoin called USDS, which maintains a valuation equivalent to one US dollar. Sky Protocol employs automated agreements known as smart contracts, removing the need for intermediaries in financial transactions. Its two primary tokens are USDS, used for savings, and SKY, which facilitates community governance.

The governance model of Sky Protocol is entirely decentralized, relying on its global community of SKY token holders for management, without a central authority. SKY tokens enable holders to vote on significant system changes and are also used to stake in the Staking Engine, which contributes to network security and allows for the generation of rewards. This staking process additionally provides access to borrowing USDS, reinforcing SKY's dual role in governance and income generation within the ecosystem.