Sky SKYPrice $ 0.0557

Sk is an Ethereum-based protocol that facilitates collateral-backed loans without the need for a middleman. Since its launch, it has gained widespread use and its DeFi integration has made MakerDAO one of the most operational protocols across the crypto ecosystem.

Sky is made up of a smart contract service that manages borrowing and lending. It has two currencies, USDS and SKY, that are used to regulate the value of loans.

Sky key features and how does it work:

• MakerDAO makes use of two tokens, these are SKY and USDS. USDS is fully backed stable while SKY is a governance token.

• USDS is an ERC20 token on the Ethereum blockchain that is soft pegged to the US dollar. Also on other chains now It is designed to provide an alternative to more volatile cryptocurrencies. When a loan is taken out on Sky, USDS is created. It is the currency that users can borrow and then pay back at a later date.

• The Sky (SKY) token was created by MakerDAO. Its main function is to govern Sky protocol. Traditional stablecoins use reserves of fiat currencies, or in some cases gold, to peg a cryptocurrency in order to keep it stable.

• Sky is also used in the USDS system governance. SKY tokens are used by its holders to vote on changes to the Sky protocol. However, anyone with an Ethereum address can submit a proposal to change the protocol, even if they do not own any SKY.

• USDS is issued when buyers purchase a smart contract-based collateralized debt position (CDP), which is very similar to a traditional loan. CDPs are bought with ETH and USDS is given in return, as such, ETH acts as the collateral to the loan.

• In essence, the system means that individuals can get a loan against their ETH. Upon repayment of the loan, the USDS is “burned” or destroyed.

Historical events:

In 2024, MakerDao launched its rebranding. The new project name is Sky, the Maker(MKR) management token is renamed Sky(SKY), and the DAI(DAI) stablecoin is renamed USDS(USDS)

DAI and MKR will remain in circulation unchanged, and the new tokens will exist in parallel. Token holders will be able to exchange DAI tokens 1:1 for USDS, while each MKR token can be exchanged for 28,000 SKY tokens.The new tokens will be released on September 18, and holders will be able to voluntarily choose whether to keep the old tokens or exchange them for the new ones.