CDPs · Review

Active

Sky Review 2026: MakerDAO's Rebrand, USDS and SKY Token

Sky is the 2024 rebrand of MakerDAO, a DeFi protocol that issues the USDS and DAI stablecoins and is governed by SKY token holders. It has a long record in DeFi, but its stablecoins carry smart-contract and governance risk.

By the DappsAtlas editorial team · Updated Nov 5, 2026

DappsAtlas score

7.8/10

Good

Our verdict on Sky

7.8/10

Sky suits users who want exposure to a mature, collateral-backed stablecoin system and are comfortable with DeFi mechanics. Its main strength is a long record as MakerDAO, plus USDS, DAI, savings yield and a governance token with real decision power. The main caveat is that smart-contract, peg and governance risks remain, and fees and rates are set by governance rather than fixed. Newcomers should start small and avoid confusing it with Skycoin.

Score breakdown

How Sky scores

Security: 7.5/10
Ease of use: 7.0/10
Fees: n/a
Features: 8.5/10

Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.

What is Sky?

Sky is the decentralised finance protocol that used to be called MakerDAO. In 2024 it rebranded and introduced USDS, an upgraded stablecoin that sits alongside DAI, one of the first and most widely used decentralised stablecoins. Its governance token, SKY, replaced MKR.

The protocol lets users generate stablecoins against crypto collateral and earn yield on stablecoins. Holders of SKY vote on how the system is run, including risk parameters and how reserves are used. Third-party coverage describes it as community-managed financial infrastructure with a long record in DeFi.

A recent news item reported protocol revenue nearing $419M annualized, with USDS central to the ecosystem. The project's homepage could not be reviewed here, so details such as audits, team structure and exact chain deployments are not covered beyond what is widely known.

How Sky works

Sky works as a decentralised lender of stablecoins. Users lock crypto collateral in smart contracts and can generate a dollar-pegged stablecoin against it. The stablecoin, now USDS alongside DAI, is meant to hold a value of one US dollar, supported by the collateral and the protocol's risk rules.

The protocol also offers a savings function. Users can hold the stablecoin and earn yield on it, with the rate set within the protocol. Revenue from the system funds this and the broader operation.

SKY is the governance token. Holders vote on risk settings, reserve strategy and other protocol decisions, and can stake the token for rewards. SKY replaced MKR after the 2024 rebrand, with a fixed upgrade rate of 24,000 to 1.

6 features

Key features

USDS stablecoin

USDS is Sky's upgraded dollar-pegged stablecoin, issued alongside the older DAI.

Collateral-backed minting

Users can generate stablecoins by locking crypto collateral in the protocol, the model MakerDAO built its reputation on.

Stablecoin savings yield

Holders of USDS and DAI can earn yield through Sky's savings features, set within the protocol.

SKY governance

SKY holders vote on how the protocol is managed, including risk settings and reserve strategy.

SKY staking rewards

SKY holders can stake the token to earn rewards, according to a protocol profile.

MKR to SKY upgrade

MKR holders could upgrade to SKY at a fixed rate of 24,000 to 1, replacing the old governance token.

Pros and cons

What we like

Long track record as MakerDAO, one of DeFi's earliest and best-known protocols
Issues USDS and DAI, widely recognised decentralised dollar stablecoins
Collateral-backed minting is a well-understood model
Holders get governance rights over risk settings and reserve strategy
Offers savings yield on stablecoins and staking rewards for SKY
Reported revenue suggests real protocol income

Watch out for

Smart-contract risk applies to every vault and savings module, despite the protocol's long track record
Stablecoin peg and collateral risk: USDS and DAI depend on collateral quality and governance decisions
Governance is concentrated among SKY holders, so risk settings can change through votes
The MKR-to-SKY migration and the dual DAI/USDS setup add complexity for newcomers
Yield rates and fees are set by governance and can change, so returns are not fixed
Not the same as the unrelated Skycoin project, and the shared ticker causes search confusion

Sky fees

Sky does not publish a single fee schedule in the material reviewed. Costs depend on the action: minting stablecoins against collateral involves stability-related charges set by governance, and every on-chain transaction pays network gas fees.

Savings rates and borrowing terms can change through governance votes. Users should check the current parameters in the protocol's own app and governance pages before depositing. One news report put protocol revenue near $419M annualized, which shows the protocol earns meaningful income from its stablecoin operations.

Is Sky safe?

Sky is a smart-contract protocol, so users keep control of funds through their own wallet but accept contract risk. The material reviewed does not list audits, bug bounties or incident history, so readers should check the project's published security documentation. Its long history as MakerDAO is a point in its favour but is not a guarantee.

Stablecoin risk matters too. USDS and DAI depend on collateral quality, liquidation rules and governance decisions, and a peg can break under stress. The project does not publish a regulatory licence in the material reviewed, and rules for stablecoins vary by country, so check what applies where you live.

6 steps

How to get started with Sky

1
Confirm you are using the Sky Protocol, formerly MakerDAO, not the unrelated Skycoin project that shares the SKY ticker.
2
Set up a self-custody crypto wallet and keep a small amount of the network's native coin for gas fees.
3
Read the current stablecoin, savings and risk parameters in the protocol's official interface and governance documents.
4
Decide whether you want USDS, DAI, a collateral-backed position or the SKY token, since each carries different risks.
5
Start with a small amount and check the contract addresses and app address carefully before approving any transaction.
6
If you hold legacy MKR, review the upgrade path to SKY at the stated 24,000 to 1 rate.

Who Sky is for

Sky fits DeFi users who want a dollar stablecoin with on-chain yield, borrowers who want to mint stablecoins against crypto collateral, and governance participants willing to hold SKY and vote. It is less suitable for people who want fixed returns, no smart-contract exposure or a simple custodial experience.

Sky FAQs

What is Sky Protocol?

Sky is the decentralised finance protocol formerly known as MakerDAO. It issues the USDS stablecoin alongside DAI, lets users generate stablecoins against crypto collateral, and is governed by holders of the SKY token.

Is Sky the same as MakerDAO?

Yes. Sources describe Sky as the new name for MakerDAO, which rebranded in 2024. SKY replaced the original MKR governance token, and holders could upgrade MKR to SKY at a fixed rate of 24,000 to 1.

What is USDS?

USDS is Sky's upgraded stablecoin, pegged to the US dollar. It sits alongside DAI, one of the first widely used decentralised stablecoins. Users can hold it and earn yield through Sky's savings features.

How do you earn yield with Sky?

Sky is described as a decentralised stablecoin and savings protocol that lets users earn yield on stablecoins and stake the governance token for rewards. The rates are set through the protocol and governance, and the project's published materials are the place to check current figures.

Is the SKY token the same as Skycoin?

No. The SKY token of Sky Protocol is the governance token of the former MakerDAO. Skycoin is a separate project from 2017 built around the Skywire mesh network, and it uses the same SKY ticker on some listings. Check the project description before buying.

Is Sky safe to use?

The main risks are smart-contract bugs, a loss of the stablecoin peg, collateral losses and governance decisions that change risk settings. The protocol has a long operating history, but that does not remove these risks. Only use funds you can afford to lose.

Compare

Sky alternatives

All alternatives

crvUSD

CDPs

crvUSD is Curve Finance's overcollateralized, USD-pegged CDP stablecoin on Ethereum, minted against crypto collateral by DeFi borrowers.

TVL $112M−13.2%Ethereum

Liquity V2

CDPs

Liquity V2 is an immutable Ethereum borrowing protocol where users set their own interest rate and mint the BOLD stablecoin against ETH, wstETH or rETH.

TVL $86.7M+0.6%Ethereum

Frankencoin

CDPs

Frankencoin is an over-collateralized, oracle-free Swiss franc stablecoin (ZCHF) on Ethereum for borrowing, saving and payments.

TVL $59.3M+2.1%Ethereum

Liquity V1

CDPs

Liquity V1 is an immutable Ethereum protocol offering 0% interest LUSD loans against ETH collateral, for DeFi users comfortable with liquidation risk.

TVL $155M−0.8%Ethereum

Indigo

CDPs

Indigo is a non-custodial synthetic assets protocol on Cardano for minting iUSD and iBTC against collateral, aimed at Cardano DeFi users.

TVL $3.10M−5.5%Cardano

Sky Lending

CDPs

Sky Lending is the borrowing and savings side of the Sky ecosystem on Ethereum, built on the USDS stablecoin, the upgraded version of DAI.

TVL $4.67B−8.4%Ethereum

Same category

More CDPs

CDPs rankings

Liquity

CDPs

Liquity is an Ethereum borrowing protocol where ETH holders mint USD stablecoins (LUSD, BOLD) against their collateral, with the LQTY token for incentives.

Ethereum

Reservoir Protocol

CDPs

Reservoir Protocol issues the rUSD stablecoin and yield assets srUSD and trUSD across 17 chains, for DeFi users seeking stable yield.

TVL $69.6M−2.3%Monad · Ethereum · Plasma +14

River Omni-CDP

CDPs

River Omni-CDP is a multi-chain CDP protocol that issues the satUSD stablecoin against cross-chain collateral without bridging, for experienced DeFi users.

TVL $74.3M−3.9%BNB Chain · BSquared · Ethereum +9

Felix CDP

CDPs

Felix is a Hyperliquid protocol that issues the feUSD stablecoin against collateral, with lending and perps for DeFi traders.

TVL $20.8M−25.7%Hyperliquid L1

BIMA CDP

CDPs

Bima is a Bitcoin-backed credit protocol offering fixed-term collar loans and the USBD stablecoin for BTC holders who want liquidity without selling.

TVL $10.3M−3.3%Bitcoin · Ethereum · Hemi +5

Inverse Finance Frontier

CDPs

Inverse Finance Frontier is an Ethereum lending market from the Inverse DAO, aimed at DeFi users who borrow, lend or follow the DOLA ecosystem.

TVL $5.03M−5.8%Ethereum

Guides

Guides that mention Sky

All guides

DeFi
How Decentralized Oracle Networks Work
Smart contracts cannot independently check what is happening outside their blockchain. Decentralized oracle networks gather external data, compare reports and deliver results on-chain, but they add their own assumptions and risks.
Token
Is Crypto Dead? How to Judge Its Future in 2026
“Crypto is dead” can mean a market crash, fading public interest, or a technology no one uses. Learn how to tell a painful downturn from a lasting collapse by looking beyond prices at activity, products, risks, and practical signs of demand.
Token
Major Cryptocurrency Types: List and Examples
Cryptocurrencies include more than payment coins. This guide groups the major types by what they do, gives familiar examples, and explains the risks and checks that matter before you use them.
Token
Popular Cryptocurrencies Explained: 2026 Guide
Bitcoin, Ethereum, stablecoins and other well-known cryptocurrencies serve different purposes and carry different risks. This guide explains what each does and what to consider before buying or using one.
Token
Stablecoin Regulation Explained: Rules and Risks in 2026
Stablecoin regulation sets rules for who can issue certain tokens, what must back them and how holders can redeem them. Learn how the U.S. GENIUS Act, the EU’s MiCA framework and other national approaches affect stablecoin users and businesses in 2026.
Token
Stablecoin Types and Examples: A Practical List
Stablecoins come in several forms, from cash-backed tokens to crypto-collateralized and synthetic dollars. Learn how the main types work, compare familiar examples, and assess their different risks.

How we checked

Sources

Last updated Nov 5, 2026. Spotted an error? Tell us and we will correct it.