Question 1

What is the Sky Protocol?

Accepted Answer

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. Additionally, 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.

Question 2

Migration from MakerDAO to Sky Protocol

Accepted Answer

The migration from MakerDAO to the Sky ecosystem included the introduction of SKY as the governance token, replacing MKR. Holders of MKR were given the option to upgrade to SKY at a fixed rate of 1:24,000. This change was implemented to address governance scalability challenges and ensure broader participation in decision-making processes within the Sky Protocol.

The Sky ecosystem continues to support MakerDAO’s legacy assets, including DAI and MKR, while offering upgraded versions in the form of USDS and SKY. Governance decisions regarding the long-term role of legacy tokens remain in the hands of the community through onchain voting.

Question 3

What is Sky (SKY)?

Accepted Answer

Sky (SKY) is the native governance token of the Sky Protocol, introduced as an upgraded version of Maker’s MKR token. It enables decentralised decision-making within the ecosystem, allowing holders to vote on protocol changes, governance proposals, and economic policies.

SKY was created to improve governance participation by increasing token accessibility. The supply of SKY is significantly larger than MKR, with an upgrade rate of 1 MKR to 24,000 SKY, making governance more inclusive and scalable. The token plays a crucial role in securing the ecosystem and ensuring decentralised control over protocol decisions.

Question 4

What is Sky (SKY) used for?

Accepted Answer

SKY plays a fundamental role in the governance and incentive mechanisms of the Sky Protocol. Its primary use cases include:

- **Governance**: SKY holders participate in decentralised onchain voting, influencing protocol parameters such as stability fees, collateral onboarding, ecosystem incentives, and governance structures.
- **Activation Token Rewards**: Users will soon be able to supply SKY to the Activation module to earn USDS or other Sky ecosystem tokens as rewards.
- **Seal Rewards**: Users can supply SKY to the Seal Engine, generating additional USDS rewards while also enabling voting power delegation. Sealing SKY also supports decentralisation and security within the protocol.
- **Borrowing and Lending**: SKY can be used as collateral within the ecosystem to generate and borrow USDS, leveraging decentralised lending markets powered by Spark.
- **Trading and Conversion**: SKY can be traded for USDS and other assets via decentralised liquidity pools, supporting ecosystem liquidity and user participation.
- **Security and Decentralisation**: By staking or locking SKY in governance contracts, users contribute to the resilience and long-term stability of the protocol.

Question 5

Who created Sky (SKY)?

Accepted Answer

SKY was developed by the team behind MakerDAO as part of the transition to the Sky Protocol in 2024. Led by Rune Christensen and the MakerDAO community, the upgrade aimed to improve governance efficiency and decentralisation by expanding the token supply and enhancing participation.

The development of SKY was part of a broader effort to restructure governance, making it more resilient and adaptable to changes in the DeFi landscape. The introduction of SKY aligns with the Sky Protocol’s objective of fostering innovation, community-driven governance, and increased accessibility to DeFi.

#	Instrument	Exchange	Benchmark Score	Price	24h Change	24h Volume	24h Trades	24h Open	24h High
1	SKY-USDT SKYUSDT	binance	AA	0.06839USDT	-1.37%	12,552,526.00SKY	14,314	0.06934USDT	0.07048USDT
2	SKY-USDT SKYUSDT	bybit	A	0.06840USDT	-1.43%	4,060,453.90SKY	3,346	0.06938USDT	0.07042USDT
3	SKY-USDT SKY_USDT	gateio	A	0.06841USDT	-1.40%	3,275,781.00SKY	1,104	0.06938USDT	0.07038USDT
4	SKY-USDT SKY_USDT	whitebit	BB	0.06841USDT	-1.43%	2,461,722.00SKY	7,730	0.06941USDT	0.07052USDT
5	SKY-USDT SKY-USDT	okex	A	0.06840USDT	-1.46%	2,124,948.00SKY	3,102	0.06941USDT	0.07038USDT
6	SKY-USD SKYUSD	kraken	AA	0.06833USD	-1.39%	1,418,360.50SKY	734	0.06929USD	0.07037USD
7	SKY-USDT SKYUSDT_SPBL	bitget	BB	0.06852USDT	-1.25%	1,168,270.21SKY	1,657	0.06940USDT	0.07040USDT
8	SKY-USD SKY-USD	coinbase	AA	0.06837USD	-1.27%	1,047,916.00SKY	798	0.06925USD	0.07040USD
9	SKY-USDC SKYUSDC	binance	AA	0.06839USDC	-1.33%	530,440.00SKY	373	0.06931USDC	0.07031USDC
10	SKY-TRY SKY_TRY	whitebit	BB	3.40TRY	-1.62%	545,511.00SKY	785	3.45TRY	3.51TRY
11	SKY-USDC SKY-USDC	okex	A	0.06905USDC	-0.38%	516,957.50SKY	254	0.06931USDC	0.07031USDC
12	SKY-EUR SKY_EUR	whitebit	BB	0.06100EUR	-1.53%	372,936.00SKY	926	0.06195EUR	0.06288EUR
13	SKY-USDT SKY-USDT	kucoin	BB	0.06848USDT	-1.30%	386,447.40SKY	601	0.06938USDT	0.07038USDT
14	SKY-EUR SKYEUR	kraken	AA	0.06116EUR	-1.13%	202,565.79SKY	149	0.06186EUR	0.06260EUR
15	SKY-USDC SKY_USDC	whitebit	BB	0.06841USDC	-1.26%	243,684.00SKY	538	0.06927USDC	0.07049USDC
16	SKY-BTC SKY_BTC	whitebit	BB	0.0₆8510BTC	-1.48%	215,434.00SKY	448	0.0₆8638BTC	0.0₆8731BTC
17	SKY-TRY SKYTRY	binance	AA	3.40TRY	-0.03%	188,160.00SKY	203	3.40TRY	3.49TRY
18	SKY-USD SKYUSD	bitfinex	BB	0.06801USD	-1.43%	989.73SKY	5	0.06900USD	0.06916USD
19	SKY-EUR SKY-EUR	okex	A	0.06115EUR	-1.43%	9,309.90SKY	15	0.06204EUR	0.06272EUR
20	SKY-USD skyusd	gemini	A	0.07339USD	7.97%	1,750.85SKY	11	0.06797USD	0.07342USD
21	SKY-USD SKY_USD	cryptodotcom	AA	0.06899USD	-0.20%	753.00SKY	1	0.06913USD	0.06913USD
22	SKY-EUR skyeur	bitstamp	AA	0.06112EUR	-6.10%	1,774.70SKY	1	0.06508EUR	0.06508EUR
23	SKY-USDT SKYUST	bitfinex	BB	0.07122USDT	0.92%	137.77SKY	3	0.07056USDT	0.07127USDT
24	SKY-USD SKYUSD	itbit	BB	0.07226USD	0.00%	0SKY	0	0.07226USD	0.07226USD
25	SKY-USDT SKY_USDT	poloniex	C	0.06819USDT	-1.66%	32,189,875.44SKY	38,529	0.06934USDT	0.07054USDT
26	SKY-USDT SKYUSDT	toobit	C	0.06840USDT	-1.38%	4,708,321.00SKY	10,858	0.06936USDT	0.07045USDT
27	SKY-USDT SKY_USDT	coinw	-	0.06848USDT	-1.27%	3,006,434.83SKY	2,237	0.06936USDT	0.07038USDT
28	SKY-USDT sSKYUSDT	phemex	C	0.06830USDT	-1.34%	3,658,482.20SKY	5,498	0.06923USDT	0.07058USDT
29	SKY-USDT SKYUSDT	bitrue	D	0.06840USDT	-1.38%	1,301,059.70SKY	5,084	0.06936USDT	0.07044USDT
30	SKY-USDT sky_usdt	xtpub	-	0.06840USDT	-1.36%	1,253,548.51SKY	4,489	0.06934USDT	0.07047USDT
31	SKY-USDT sky_usdt	digifinex	D	0.06840USDT	-1.37%	948,313.43SKY	6,374	0.06934USDT	0.07044USDT
32	SKY-KRW KRW-SKY	upbit	B	91.80KRW	-1.71%	1,013,135.34SKY	244	93.40KRW	94.50KRW
33	SKY-USDT SKY_USDT	bitunix	C	0.06841USDT	-1.36%	967,210.49SKY	7,485	0.06934USDT	0.07044USDT
34	SKY-USDT SKYUSDT	mexc	C	0.06841USDT	-1.37%	899,678.07SKY	3,002	0.06936USDT	0.07043USDT
35	SKY-USDT SKY-USDT	bingx	D	0.06843USDT	-1.34%	779,426.50SKY	7,048	0.06936USDT	0.07045USDT
36	SKY-USDT SKY_USDT	bydfi	-	0.06841USDT	-1.34%	787,417.59SKY	2,914	0.06934USDT	0.07043USDT
37	SKY-USDC SKYUSDC	mexc	C	0.06836USDC	-1.37%	756,161.43SKY	2,941	0.06931USDC	0.07035USDC
38	SKY-KRW SKY_KRW	bithumbkorea	-	91.27KRW	-1.01%	265,718.49SKY	113	92.20KRW	93.37KRW
39	SKY-USD SKY-USD	btse	-	0.06841USD	-1.33%	394,166.00SKY	16,266	0.06934USD	0.07042USD
40	SKY-USDT skyusdt	huobipro	C	0.06850USDT	-1.26%	316,193.53SKY	202	0.06937USDT	0.07032USDT
41	SKY-EUR SKY-EUR	bitvavo	B	0.06108EUR	-1.31%	319,659.60SKY	115	0.06189EUR	0.06272EUR
42	SKY-PHP SKYPHP	coinspro	D	4.34PHP	-1.36%	306,274.00SKY	7,221	4.40PHP	4.47PHP
43	SKY-MYR SKYMYR	luno	B	0.2812MYR	-1.47%	72,355.00SKY	56	0.2854MYR	0.2881MYR
44	SKY-JPY sky_jpy	bitbank	C	10.74JPY	-1.58%	124,448.77SKY	67	10.91JPY	11.08JPY
45	SKY-TRY SKYTRY	btcturk	E	3.39TRY	-1.61%	58,340.70SKY	17	3.45TRY	3.48TRY
46	SKY-USDT SKY-USDT	btse	-	0.06839USDT	-1.34%	53,831.00SKY	1,805	0.06932USDT	0.07048USDT
47	SKY-USDT SKYUSDT	binanceusa	B	0.06849USDT	-0.55%	20,548.00SKY	12	0.06887USDT	0.06887USDT
48	SKY-BRL SKY-BRL	mercadobtc	C	0.3398BRL	-3.17%	23,942.11SKY	31	0.3509BRL	0.3510BRL
49	SKY-USDT SKY_USDT	cryptology	D	0.07112USDT	0.00%	0SKY	0	0.07112USDT	0.07112USDT
50	SKY-USDC SKY_USDC	cryptology	D	0.07101USDC	0.00%	0SKY	0	0.07101USDC	0.07101USDC