What is Sky Protocol?

The Sky Ecosystem is a decentralized financial platform centered on two main tokens: USDS and SKY. It’s built to give users access to financial tools like trading, saving, and rewards — without having to rely on third parties or give up control of their assets. Everything works without permissions or custodians, which means users always hold their own funds. Some of the core components include token-based rewards, a system for earning interest called the Sky Savings Rate (SSR), and a structure for user-led governance.

At the heart of this system is the Sky Protocol, which evolved from what was previously known as Maker. It enables transactions using USDS and SKY while staying fully non-custodial. The protocol supports a broad set of features: decentralized trading, earning yields, and contributing to governance decisions. The infrastructure is built around open liquidity pools, a stablecoin mechanism, and a governance model where control is shared among participants — not centralized.

How Sky Works?

Sky Protocol offers several financial services that are open and transparent by design. These include token swaps, interest-earning opportunities, and community rewards. Because the system runs on decentralized pools and an independently managed stablecoin, no central authority controls how your funds are handled or how decisions are made.

The protocol operates with two main tokens:

• USDS: A stablecoin designed to hold its value close to one U.S. dollar. It’s backed by surplus collateral and represents the upgraded version of the DAI token from earlier iterations of the system.
• SKY: A governance token that replaced MakerDAO’s original MKR token. It’s used to vote on decisions, support staking, and reward users who are actively involved in managing the protocol.

In short, the Sky Ecosystem provides a structure where financial tools are decentralized, open to anyone, and controlled by those who participate.

Sky Savings Rate (SSR)

The Sky Savings Rate is a tool that lets users grow their USDS balance automatically. When you put USDS into the SSR module, you get sUSDS tokens in return. These tokens reflect your deposit and any increase in value over time. USDS is regularly added to the pool based on the current rate, which makes the value of sUSDS slowly increase.

You can withdraw your funds at any time. The system will convert your sUSDS back to the original USDS amount, plus whatever you’ve earned. The SSR rate itself changes from time to time, based on votes made through the Sky governance system. Smart contracts handle the entire exchange process, and there are no fees when converting back — everything stays tied to the dollar value.

Sky Token Rewards (STRs)

There’s also a reward system in place for users who hold USDS. By taking part in the Sky Token Rewards module, users can earn SKY tokens over time. All assets and rewards are kept in smart contracts, so there’s no outside party involved in holding them. How much you earn depends on your share of the total pool and the current reward rate, which can go up or down.

This setup lets users grow their holdings while continuing to support Sky’s broader goals. You stay in control of your USDS, and the SKY tokens you collect can be used to take part in governance decisions or other ecosystem features.

The SKY token is listed on many platforms, including Uniswap, Kraken, KuCoin and WEEX. If you’re looking to list your token on similar platforms, understanding the token listing process and crypto exchange listing fees is essential

Skylink

Skylink is Sky’s system for connecting to multiple Layer-2 networks like Arbitrum, Base, Optimism, and Unichain. It allows you to move your USDS and SKY between chains and use features like SSR without running into high gas fees or long delays. For users, this means faster, cheaper access to the Sky platform across different blockchains.

Skylink makes it easier to use Sky — whether you’re saving, trading, or earning rewards — without the usual friction of network limitations.

Sky Ecosystem and Sky Stars

The broader Sky ecosystem includes a network of independent projects called Sky Stars. Each of these projects runs on its own terms, with its own tokens and governance, but still contributes to Sky’s shared goals. This structure encourages faster development and more ideas, while keeping everything tied to the core platform.

One example is Spark, a project that allocates stablecoin liquidity across DeFi, CeFi, and real-world markets. It’s the first Sky Star and will be closely integrated with the rest of the Sky ecosystem.

Conclusion

Sky Protocol builds on the foundation of MakerDAO, taking what worked and expanding it into a more flexible and accessible platform. With USDS and SKY at the center — and systems like SkyLink, SSR, and the Sky Stars network — it’s focused on giving users better control, more options, and stronger tools in a decentralized environment.

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