Sky

Essentially a rebranding of MakerDAO - Sky isn't a significant paradigm shift in regards to the way that MakerDAO functioned, but rather, improvements of the underlying technical architecture.

The roots of this rebranding can be found within MakerDAO's "Endgame plan" - Which outlines areas of improvement within Maker's governance mechanism.

Starting from the basics, Sky has its own $USDS stablecoin, and can be acquired by redeeming DAI for a 1:1 value ratio. Just like Maker's DSR, Sky has its own SSR (Sky Savings Rate), where users can deposit USDS to earn yield, and on top of that, users receive SKY token rewards. Additionally, MKR token holders can also redeem their MKR for 23,904 SKY (as of April 25th, 2025)

Sky did bring some innovation with it, where one of the most prominent ones is the freeze function. This function allows the protocol to pause or block token transfers under specific conditions, serving as a safety mechanism during critical periods (for example, if a smart contract exploit occurs).

The introduction of Sky did not make MakerDAO obsolete, as users can still borrow DAI, interact with Maker's governance, and in general - continue on with DeFi life without Sky having an impact on their day-to-day.

Sky also introduces Skylink for multichain USDS transfers across Ethereum and Layer 2s, improving accessibility