Whitepaper read

Sky

SKY · Sky

UtilityGovernance token for Sky — holders vote on protocol decisions.

What it is

Sky (formerly MakerDAO) is one of the oldest and largest DeFi lending protocols, issuing the USDS stablecoin (upgraded DAI) through overcollateralized vaults under its 'Endgame' overhaul.

Technology & consensus

Per the official white paper, the protocol's Multi-Collateral Dai system lets users lock approved collateral in vaults (formerly CDPs) to generate stablecoins against overcollateralized debt positions, with oracle price feeds, liquidation auctions and stability fees maintaining the peg. Governance operates onchain, and the Endgame plan restructures the ecosystem into semi-autonomous 'Stars' (e.g., Spark for lending, Grove for real-world assets) coordinated by SKY governance.

Token utility

SKY is the governance token: holders vote on or delegate votes for protocol parameters, collateral onboarding, rates and incentives. It can be staked or supplied to the Activation module and Seal Engine to earn USDS rewards funded by protocol income, and used as collateral via Spark. MKR holders can upgrade at a fixed rate of 1 MKR to 24,000 SKY.

Key risks & notes

Research note: full whitepaper page fetch was unavailable this session; summary grounded in the official whitepaper page and official ecosystem materials surfaced via search. Risks: the complex dual-token transition (MKR/SKY, DAI/USDS) creates migration and liquidity fragmentation risk; governance can concentrate among large holders; black-swan collateral crashes can break the peg via liquidations; and stablecoins face mounting global regulation plus competition from centralized issuers.

Primary source

Read the official whitepaper →

Research status

Classification: Whitepaper read · Researched 2026-09-15 · Source material: official project documents only.

Machine-readable summary →

👁️ Evidence dossier

Verification classClass AFORA-01 scale — verification, not a quality ranking

Claim type · DeFi protocol token (governance — confirmed; sole governance token of the Sky protocol)

What does the holder own?

Title, redemption claim, fractional ownership, reserve exposure — or just narrative.

SKY is the sole governance token of the Sky protocol (formerly MakerDAO); MKR holders could upgrade 1:24,000, with governance migrating to the new Chief contract controlled exclusively by SKY voting.

high confidence

Evidence: [1] · [2]

Verified

Who holds the underlying?

Needs an identifiable custodian or entity — not a wallet address or a label.

No underlying exists by design: SKY is a pure bearer governance token with no backing and no claim on protocol collateral.

high confidence

Evidence: [1]

Verified

How are reserves checked?

Custodian records → inventory → third-party audit → supply reconciliation.

No reserves exist behind SKY by design; supply changes (staking emissions, USDS-funded buybacks) are governance-driven and executed on-chain.

high confidence

Evidence: [1] · [2]

Verified

How does redemption work?

Eligibility, minimums, fees, KYC, settlement — and what happens to the token.

No redemption mechanism exists or is promised for SKY; staking for USDS rewards is optional and is not redemption.

high confidence

Evidence: [1]

Verified

Who is liable if redemption fails?

A legally accountable entity and jurisdiction — not a DAO label.

No legal entity exists by design: governance is executed directly by SKY token holders through on-chain smart contracts; the protocol's own MiCA whitepaper states holding SKY imposes no requirements on any counterparty.

high confidence

Evidence: [1]

Verified

❔ UNVERIFIED means not yet researched — not disproven. Rows marked “researched” were investigated and independent evidence was not found. Coverage expands as FORTUNA verifies. This dossier was researched 2026-09-15. Method: FORA-01 Asset Claim Verification Protocol.

❔ Frequently asked questions

What is Sky (SKY)?

Sky (formerly MakerDAO) is one of the oldest and largest DeFi lending protocols, issuing the USDS stablecoin (upgraded DAI) through overcollateralized vaults under its 'Endgame' overhaul.

What does the holder own?

SKY is the sole governance token of the Sky protocol (formerly MakerDAO); MKR holders could upgrade 1:24,000, with governance migrating to the new Chief contract controlled exclusively by SKY voting.

What is Sky's verification status?

Sky (SKY) carries verification class A (Class A): every applicable FORA-01 question is VERIFIED — a full verification chain. What would change it: A status change would require new evidence — a status never changes from reinterpreting old evidence.

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