Sky

About Sky

SKY (SKY) is the governance token of Sky Protocol, formerly known as MakerDAO ecosystem operating on the Ethereum blockchain network. SKY operates above the protocol of USDS, which is a dollar-denominated stable coin that evolved from the previous DAI stable coin.  The main purpose of SKY tokens includes governance and safety features. The holders can vote or delegate their votes for collateral onboarding, stability fees, and liquidation parameters. The tokens may also be used as a backstop in case of stress events, just as MKR tokens in the previous Maker era framework. Users can upgrade their MKR tokens to SKY tokens with a fixed exchange rate of 1:24,000, reducing the per unit cost of SKY tokens.  Within the ecosystem, the SKY token interacts with staking and rewards modules where the users stake their tokens to receive protocol rewards and gain access to other functions such as borrowing USDS using the staked SKY tokens. They cannot be used for regular transactional gas fees and do not represent claims on reserves.