Sky

Sky is the decentralized stablecoin protocol formerly known as MakerDAO. It issues USDS, a dollar-pegged stablecoin, alongside sUSDS, a savings token that accrues the protocol's Sky Savings Rate, and SKY, the governance token. On Solana, [[MINT:USDSwr9ApdHk5bvJKMjzff41FfuX8bSxdKcR81vTwcA|USDS]] has circulated as a native SPL token since November 2024, and a dedicated Sky unit called Keel allocates USDS liquidity into Solana DeFi and tokenized real-world assets.

From MakerDAO to Sky

MakerDAO was one of Ethereum's earliest DeFi protocols and the issuer of the DAI stablecoin. On August 27, 2024 it rebranded as Sky as the first product release of its "Endgame" restructuring, with the new tokens going live in September 2024. DAI holders can upgrade to USDS at 1:1, and MKR holders can convert to SKY at a ratio of 1:24,000. The Block reported that DAI and MKR remain in place unless governance decides otherwise. The rebrand also renamed MakerDAO's SubDAOs as "Stars," semi-autonomous units that deploy Sky capital in their own niches. Co-founder Rune Christensen has led the transition.

How the protocol works

Sky's developer documentation describes a system built on the Maker codebase: collateralized vaults, an accounting core (the Vat, Vow, Join and Spot modules), an Oracle Security Module for price feeds, and on-chain governance through the Chief voting contract and executable "spells." Peg Stability Modules, including the LitePSM, let users swap between USDC and USDS. The Sky.money app advertises 1:1 USDC-to-USDS conversion with no fees.

According to Sky.money, at the time of writing (September 2026) USDS supply stood at about $9.65 billion against roughly $16.63 billion in collateral. The main products on the app are:

• sUSDS, which earns the Sky Savings Rate, a variable rate funded from protocol surplus and set by governance (3.60% APY at the time of writing). Sky calls it the largest yield-bearing stablecoin.
• SKY staking, which pays governance rewards to SKY stakers.
• stUSDS, a higher-yield product that earns from lending against SKY collateral.
• Fixed-yield positions through a Pendle integration and Morpho-based vault strategies.
• Sky Ecosystem Rewards, where partner projects distribute tokens or points to USDS suppliers.

The Block noted that the Savings Rate and Sky Token Rewards are unavailable in the U.S. and U.K. through the Sky.money interface.

Institutions have adopted sUSDS as a treasury asset. In September 2026, The Defiant reported that Galaxy had put $100 million of sUSDS into its corporate treasury and approved it as eligible collateral across its institutional lending business.

USDS on Solana

Sky launched USDS on Solana on November 19, 2024, using Wormhole's Native Token Transfers in burn-and-mint mode so that Solana USDS was a native token rather than a wrapped IOU. Cointelegraph reported that Sky billed it as the first major DeFi-native stablecoin on Solana. The launch came with USDS reward programs on [[PROJECT:303]] (for USDC/USDS liquidity providers and stablecoin suppliers), [[PROJECT:238]], Save and Jito liquidity pools. Wormhole's case study states that the deployment moved $824 million between Ethereum and Solana across 1,370 cross-chain transfers while it ran on NTT.

Sky governance later moved the Ethereum-Solana bridge from Wormhole NTT to LayerZero's Omnichain Fungible Token (OFT) standard. The bridge documentation explains that an OFT adapter on Ethereum locks USDS and a Solana OFT program mints the equivalent on Solana, with the process reversed on the way back. The Solana USDS mint (USDSwr9ApdHk5bvJKMjzff41FfuX8bSxdKcR81vTwcA) did not change in the migration, and the Solana OFT program address is SKYTAiJRkgexqQqFoqhXdCANyfziwrVrzjhBaCzdbKW. The documentation states that only USDS is supported on the new bridge at first, with sUSDS to follow later. A March 2026 guide from Keel points users to Stargate for bridging and says the only cost is Ethereum gas.

In 2026 Sky paused its LayerZero-based bridges as a precaution after the KelpDAO rsETH exploit. Sky resumed the Solana USDS bridge on May 11, 2026 after a security review, stating that its protocol and USDS contracts were not affected and that USDS stayed fully collateralized throughout. The Avalanche bridge remained suspended pending further review.

Keel, Sky's Solana Star

[[PROJECT:1836]] launched on September 29, 2025 as the third Sky Star after Spark and Grove, and the first focused on Solana. CoinDesk reported that Keel receives an allocation of Sky's USDS reserves and has a roadmap to deploy up to $2.5 billion into Solana DeFi and tokenized-asset markets, with early integrations named as Kamino, Jupiter and Raydium. Matariki Labs CEO Cian Breathnach contributes to Keel.

In December 2025 Keel opened the "Tokenization Regatta," a $500 million campaign that allocates capital to projects issuing tokenized real-world assets on Solana. Keel also runs "Integration Boosts" that top up yields so USDS suppliers on supported Solana markets, including Kamino, JupLend and Drift, earn at least the Sky Savings Rate.

Where Sky fits on Solana

Sky's core contracts, governance and savings products run on Ethereum. Its Solana presence is USDS itself, plus the capital Keel deploys into lending markets, liquidity pools and tokenized assets on Solana. For Solana users, that means a large decentralized stablecoin is available natively in the major lending protocols, with incentive programs designed to keep on-chain USDS yields in line with the Ethereum savings rate. sUSDS support on the LayerZero bridge has been announced but was not live on Solana when the bridge documentation was last checked.