Overview
Sky is the new name of MakerDAO, the protocol founded by Rune Christensen that created DAI, the first decentralized stablecoin, in 2017. In 2024, MakerDAO rebranded as Sky, launched the USDS stablecoin and upgraded its governance token from MKR to SKY (1 MKR = 24,000 SKY).
Together, USDS and DAI make Sky one of the largest stablecoin issuers outside Tether and Circle.
How it works
- Sky issues USDS and DAI against collateral: crypto, USDC and real-world assets such as US Treasury bills.
- It earns interest on that collateral and on loans, and pays part of it to savers through the Sky Savings Rate.
- Sub-projects called “Stars”, such as Spark, deploy USDS into lending and yield strategies.
- SKY holders vote on rules, collateral and spending, and can stake SKY for rewards.
Revenue and buybacks
Sky is one of DeFi’s most profitable protocols. It reported record gross revenue of about $124 million in Q1 2026, and expects USDS supply to grow strongly.
Part of its profit is used to buy back SKY: by March 2026, about $114 million had bought back roughly 1.8 billion SKY. In March 2026, governance cut buybacks by about 87% for a while, redirecting surplus into a $150 million solvency reserve to strengthen the system’s buffer.
The SKY token
| SKY at a glance | |
|---|---|
| Supply (Oct 2026) | about 23.4 billion SKY |
| Price (29 Oct 2026) | about $0.067 |
| All-time high | about $0.10 (October 2026) |
| Market cap | about $1.6 billion (#62) |
Risks
- Collateral. Much of the backing is USDC and Treasuries held through partners, so Sky depends on traditional finance.
- Governance. SKY holders frequently change parameters, including buybacks and rewards.
- Competition. Ethena’s USDe, Circle’s USDC and others compete for stablecoin users.
- Smart-contract risk.
Sky vs. the competition
| Sky (SKY) | Ethena (ENA) | Aave (AAVE) | |
|---|---|---|---|
| Main product | USDS / DAI stablecoins | USDe synthetic dollar | Lending (and GHO) |
| Token value | Buybacks (reduced 2026) | Fee switch (pending) | Buybacks (paused 2026) |
| History | Since 2017 | Since 2024 | Since 2017–2020 |
Our verdict
Sky combines DeFi’s longest stablecoin history with strong, growing revenue, and buybacks give SKY a direct link to that income. Its price has held up far better than most tokens. Still, its collateral leans on traditional finance, governance can change the rules, and buybacks were scaled back in 2026. SKY is a high-risk but fundamentally backed DeFi token. Invest only what you can afford to lose.
This review is for information only and is not financial advice.