About

USDS, formerly DAI, is the stablecoin of the decentralized Sky Protocol, designed to maintain a soft peg to the U.S. dollar. It allows users to participate in Sky's ecosystem, such as earning rewards through the Sky Savings Rate, without giving up control of their funds. USDS is an upgraded version of DAI, backed by surplus collateral, and powers the permissionless, non-custodial Sky Protocol, enabling users to trade, save, and earn rewards.

SKY is the native governance token of the Sky ecosystem, replacing Maker's MKR token at a conversion rate of 1:24,000. It is used for governance, rewards accumulation, and trading within the Sky Protocol. Users can trade SKY for USDS and soon use it to earn Activation Token Rewards while participating in decentralized on-chain governance.

History

Sky Dollar (USDS) is the upgraded flagship stablecoin of MakerDAO, launched as part of the protocol's 2024 "Endgame" rebrand - alongside the switch from MKR to SKY as the new governance token.

USDS upgraded the DAI model by adopting multi-collateralization, cross-chain bridging (via SkyLink), and EVM parity, making it compatible with major DeFi/lending markets across Layer 1s and Layer 2s.