SKY / Sky Protocol is the governance and utility token of the rebranded MakerDAO → Sky Protocol system. It supports the Sky ecosystem’s operations around USDS (the new stablecoin, replacing DAI within the system) and decentralised governance of system parameters like stability rates, savings rates, and collateral types.
The protocol runs on Ethereum, but also uses “SkyLink” to connect assets and users across L2s (Base, Arbitrum, Optimism, etc.) for lower gas and greater accessibility.The transition from Maker to Sky involved token swaps (DAI → USDS, MKR → SKY) and a redesign of governance and modular architecture, including independent “Sky Stars” (sub-protocols/projects) to expand functionalities.