What is Sky?
Sky (SKY) is a governance token for the Sky protocol, the continuation of the MakerDAO project — a pioneer of decentralized stablecoins. During the rebrand, the previous governance token MKR was converted to SKY at a fixed rate.
How it works
The protocol issues stablecoins backed by crypto assets and tokenized traditional instruments, while SKY holders govern its parameters: rates, collateral types, and risk limits. The token can be staked to earn a share of protocol revenues, and the ecosystem develops through specialized divisions ("stars") responsible for individual products.
Pros and cons
- Pros: long protocol history, real income from lending and reserves, active development of the product line.
- Cons: complexity of managing a multi-layered system, stablecoin market competition, regulatory uncertainty.