Sky (SKY)

Sky, formerly known as MakerDAO, is a decentralized finance project that enables users to borrow a stable digital dollar by using their cryptocurrency as collateral. The system operates through smart contracts, which function as automatic computer rules executing on the Ethereum blockchain without a central authority. These contracts act like a continuous lending desk, allowing individuals to deposit crypto assets to receive a stablecoin known as USDS, with an older version called DAI. This stablecoin is designed to maintain a value of approximately one US dollar.

Key Components

• SKY Token: Serves as the governance token, granting holders the ability to vote on system parameters and decisions.
• USDS: The primary stablecoin generated by the protocol, intended to stay pegged to the US dollar.
• Smart Contracts: Automated programs that manage the lending process, ensuring consistent rules for all participants.

The protocol distinguishes between the SKY token, which controls the network, and USDS, which is the currency used for transactions. By utilizing code-run logic, Sky provides a transparent financial infrastructure where no single boss is in charge, allowing the community to manage the protocol's evolution and stability.