Sky Protocol: The Next Evolution of Decentralized Finance

Sky transforms MakerDAO’s legacy into a next-gen ecosystem. After two years of development, Sky launched a streamlined platform where stability meets innovation. This solves DeFi’s adoption hurdle.  The industry’s infrastructure is ready, and now accessible. Earn effortlessly through:

• USDS: The stablecoin redefined
• SKY: Governance with built-in rewards
• Stars: Scalable micro-ecosystems

Sky.money launched on September 18, 2024.

USDS & SKY tokens, the streamlined platform, native rewards, and Stars ecosystem framework. This foundation kicks off DeFi’s next phase – more upgrades coming soon.

USDS: Sky’s Upgraded Stablecoin

USDS is the next-gen stablecoin, convertible 1:1 with Dai or USDC via the platform. Upgrades are optional and reversible.

Holders earn built-in SKY Token Rewards (600M SKY/year) directly through the Protocol—no risky third-party exposure. Alternatively, opt for the proven Savings Rate.

Restrictions apply (US, UK, VPN users).

The Governance Powerhouse

The ecosystem replaces MKR as Sky’s governance token, with optional 1:1 conversion (24,000 SKY per MKR).

Key Features:

• Smart Burn Engine activated at launch, targeting SKY/USDS liquidity
• Future upgrades include Sealed/Regular Activation (governance rewards in USDS + SKY)

Restrictions apply (US, UK, VPN users).

Sky.money

The user-facing platform is a decentralized portal to seamlessly access all key features of the Sky Protocol:

• Convert Dai to USDS
• Upgrade MKR to SKY
• Earn SKY token rewards
• Access USDS savings rates

Designed for ultimate simplicity, the platform sets the gold standard for user-friendly DeFi access.

After the Launch

The roadmap continues with rapid innovation:

Sealed Activation
This feature rewards long-term governance participation. Lock SKY/MKR tokens with an exit fee to earn additional rewards.

Sealed Activation Rewards

Lock your MKR/SKY to earn USDS rewards from 25% of the protocol’s stablecoin surplus. Post-launch, now that Spark Star is live, you have the option to switch rewards to SPK tokens (15% of SPK reward pool).

Restrictions apply for US, UK, and VPN users

Sealed Activation Mechanics

• 5% exit fee applies when unsealing tokens (burned by the protocol)
• Fee increases 1% every 6 months (capping at 15% after 5 years)
• Only affects principal – earned rewards remain intact

Regular Activation (Coming Soon)

• No lockup: Freely activate/deactivate anytime
• Earn 15% of the total SPK supply as rewards

Excludes US/UK/VPN users

The Ecosystem Overview

Skylink bridges USDS/SKY across Ethereum and L2s post-Sealed Activation, enabling cross-chain USDC conversions, savings, and rewards. Future network expansions are planned.

Spark, the first Star, launched SPK via USDS rewards, ensuring decentralized distribution. SPK rewards work multichain via Skylink.

SparkLend (spark.fi), a top-10 DeFi lender, lets users mint USDS against crypto collateral.

SPK Airdrop: Active SparkLend users can pre-farm SPK (trackable via Block Analitica), separate from ongoing rewards.

Restrictions apply for US/UK/VPN users.

Allocation System

Spark’s Allocation System funds top DeFi opportunities using low-cost capital, starting with Morpho’s sUSDe market. It plans to scale via the Tokenization Grand Prix, deploying billions into RWAs using MakerDAO’s expertise (governance approval required).

SPK Tokenomics: Dual Reward Streams

At launch, SPK tokens became available as:

1. Mainnet/L2 rewards for USDS holders (low-fee claims)
2. Sealed Activation rewards
   These are separate from the SPK airdrop, creating multiple pathways for user participation.

US/UK/VPN restrictions apply to all reward mechanisms.

SPK Reward Distribution

The governance-approved SPK distribution allocates 1 billion tokens annually for the first two years, halving every two years until reaching a 4 billion total cap over a decade. USDS holders receive 700 million SPK yearly, while the Activated governance token and Sealed SKY/MKR each get 150 million annually – all rates follow the same biennial halving schedule. These reward mechanisms remain restricted for users in the US, UK, and VPN connections.

SPK Activation & Governance

SPK tokens launched with built-in rewards (80M SKY/year) for eligible users on Ethereum and L2s (excludes US/UK/VPN). The holders of SPK govern Spark autonomously within Sky’s framework.

Legal Structure

The legal framework safeguards decentralized governance against external influence while addressing regulatory risks.

IP & Operations of Sky

The IP will be held by a new Dai Foundation-style entity, preserving governance control. Skybase—a neutral, compliant operator—manages the user-facing platform at launch, funded via the Launch Project. Future growth depends on initial success.

Join the Sky Revolution

DeFi is transforming finance into a decentralized, transparent, and fair system—and this ecosystem is leading the charge. Get involved:

• Builders: Integrate for ecosystem benefits (@SkyEcosystem)
• Users: Sign up on the Early Bird Bonus

Be part of the future.