Make We Reason Sky Protocol
Sky Protocol, wey pipu sabi as Maker before, na decentralized finance (DeFi) protocol wey dey allow users generate USDS, stablecoin wey be like US dollar, for savings or to make profit.
Sky dey continue di legacy of Maker for DeFi space, as e dey offer unique way to create stable, decentralized currency, plus new features and upgraded tokens.
Tins you gats sabi:
Sky Protocol dey offer decentralized savings service wey no get middleman, based on di USDS stablecoin, wey be di successor to Maker's DAI stablecoin.
Di protocol dey governed by SKY token holders thru decentralized autonomous organization (DAO). SubDAOs, wey dem dey call Stars, dey responsible to build new utilities around di main protocol.
Before Sky official launch for September 2024, Maker get total value locked (TVL) of $6.23 billion, and DAI get market capitalization of $5.25 billion.
Wetin Sky Protocol be?
Sky Protocol na DeFi project wey dey allow users generate di USDS stablecoin, na either you deposit DAI or convert USDC, or dem fit also deposit and borrow against crypto collateral like ETH for one Star platform like di Spark lending app.
At di end, dis system dey help pipu and businesses enjoy di benefits of digital money without di wahala of volatility wey dey follow non-pegged cryptocurrencies.
Sky Protocol dey evolve from Maker’s original design, as e dey build on di success, while e dey introduce new improvements thru Maker “Endgame” wey dem don plan. One major change na di rebranding of governance token from MKR to SKY and di stablecoin DAI to USDS. Dis rebranding na part of bigger plan to improve decentralization, scalability, and user experience.
How Sky Protocol dey take work?
Sky Protocol dey run on top of smart contracts wey focus on di USDS stablecoin and di Sky Savings Rate (SSR), wey users fit deposit to dey earn 6% every year.
Pipu fit interact with Sky thru di new sky.money platform, wey dey give non-custodial access to di core features of di protocol, like upgrading DAI to USDS, and MKR to SKY, plus di chance to participate for Sky Token Rewards campaigns.
Another key part of Sky na Stars (before dem dey call am SubDAOs), wey be smaller, specialized decentralized communities wey dey operate on top Sky Protocol.
For example, di lending platform Spark na di first Star wey launch. E extend Sky Protocol as e dey allow users create collateralized debt positions (CDPs), wey mean say dem fit self-generate USDS loans by depositing crypto assets wey di platform support as collateral.
Why Sky Protocol?
Sky Protocol dey offer beta way to save and earn for DeFi, wey dey make am draw pipu wey wan grow dia digital assets. With di Sky Savings Rate, users fit earn interest on top dia USDS holdings, wey get confam strong system wey don manage billions of dollars.
Plus, di new Sky Token Rewards system dey give users chance to earn SKY tokens just by participating inside di ecosystem, wey go add more value to dia savings. Later on, di introduction of Skylink mechanism go expand dis opportunities across different Layer 1 (L1) and Layer 2 (L2) networks, wey go make sure say more pipu fit access earning chances.
On top dat, di Stars ecosystem, wey get specialized and decentralized units like Spark, go allow different and innovative ways for people to engage with DeFi, all with di security and scale wey Sky Protocol dey offer. As more Stars launch, users go get access to plenty DeFi options, alongside wetin third-party platforms like Summer.fi and Instadapp go provide.
How you fit invest for Sky Protocol?
Di main way to invest for Sky Protocol na thru di governance token, SKY. Pipu wey hold SKY token get voting rights for important protocol decisions, like setting risk parameters and adding new collateral types. Di value of di token dey tied to how Sky Protocol perform, as di fees wey di system generate go dey used to buy and burn SKY, wey fit reduce di supply and increase scarcity over time.
As di successor to Maker’s MKR token, people fit upgrade from MKR to SKY on top sky.money for fixed exchange rate of 1 MKR to 24,000 SKY. Dis upgrade option start on September 18th, 2024.