# Sky > Stablecoins aren't built to sit still Sky is a decentralized stablecoin and savings protocol. It lets users earn yield on stablecoins, stake its governance token for rewards, and borrow against staked positions while keeping custody of their funds. Sky is a decentralized stablecoin protocol that issues a USD-pegged stablecoin and pays savings and staking rewards to the people who hold it. Users manage funds from self-custody wallets, supplying stablecoins to earn yield or staking the governance token for rewards. It serves savers looking for stable onchain returns and token holders who take part in protocol governance. The protocol mints its stablecoin against overcollateralized crypto positions and directs part of its revenue to a savings rate that depositors earn automatically. Governance token holders vote on risk parameters, collateral types, and rates, and can stake their tokens to earn rewards, borrow stablecoins against the stake, or delegate their voting power. Its flagship product, Sky Money, brings savings, staking, curated lending vaults, and token conversion into one self-custodial app, with trading between ecosystem tokens built in. A separate governance portal handles voting and delegation. Sky is used by individual savers, DeFi protocols that integrate its stablecoin as collateral and liquidity, and governance participants. - Type: Protocol - Sector: DeFi - Status: Active - Founded: 2017-12-18 - Profile: https://thegrid.id/profiles/sky ## Products - [Sky Money](https://thegrid.id/profiles/sky): Sky Money is a self-custodial yield app that lets users earn on stablecoins through the Sky Savings Rate and curated lending vaults. Depositing into the savings module mints a savings token that grows in value as yield accrues, while vaults allocate stablecoin deposits across lending markets. Users can also stake the governance token to earn rewards, borrow stablecoins against the staked position, and delegate voting power. Built-in conversion moves between the protocol's stablecoins and legacy tokens at fixed rates, alongside trading between ecosystem tokens. The app runs across multiple blockchains, and users keep full control of deposited funds throughout. (Yield Aggregator, Live, Main Product) ## Assets - [USDS (USDS)](https://thegrid.id/profiles/sky): USDS is a USD-pegged stablecoin issued by Sky Protocol and backed by overcollateralized positions. It is used for payments, earning yield through the Sky Savings Rate, and as collateral across DeFi protocols on multiple blockchains. Holders can upgrade DAI or convert USDC into USDS at a fixed 1:1 rate, and supplying USDS to reward modules earns ecosystem token rewards without lockups. (Stablecoin) - [Savings USDS (sUSDS)](https://thegrid.id/profiles/sky): sUSDS is a vault token representing USDS deposits in the Sky Savings Rate module. It is used for earning yield on USDS while staying transferable for collateral and liquidity provision across multiple blockchains. Unlike USDS, which holds a stable value, sUSDS appreciates as the savings rate accrues, so holders redeem it for more USDS than they deposited. (Vault Tokens) - [SKY Governance Token (SKY)](https://thegrid.id/profiles/sky): SKY is the governance token of Sky Protocol, replacing MKR at a conversion rate of 24,000 SKY per MKR. It is used for voting on protocol decisions, staking for rewards, and borrowing USDS against staked positions. Staked SKY keeps its voting power through delegation, letting holders earn rewards and borrow without giving up a say in governance. (Governance) - [Maker (MKR)](https://thegrid.id/profiles/sky): MKR is the original governance token of the Maker Protocol, now Sky Protocol. It was used for voting on stability fees, collateral types, and other protocol parameters, and as a recapitalization resource when the system ran short of collateral. MKR has been superseded by SKY, and holders can convert it one-way at a fixed rate of 24,000 SKY per MKR. (Governance) - [Dai (DAI)](https://thegrid.id/profiles/sky): DAI is a USD-pegged stablecoin issued by the Sky Protocol, formerly known as MakerDAO. It is generated by users depositing collateral assets into Sky Protocol Vaults, providing access to liquidity while maintaining overcollateralization. DAI remains in circulation as a legacy token alongside USDS, with holders able to voluntarily upgrade to USDS at a 1:1 ratio. (Stablecoin) - [Wrapped Ether (WETH)](https://thegrid.id/profiles/sky): WETH is a wrapped Ether token that conforms to the ERC-20 standard on Ethereum. It is used for trading on DEXs, collateral in lending markets, and liquidity provision where native ETH is not ERC-20 compatible. Anyone can mint WETH by depositing ETH 1:1 into the canonical WETH9 contract and redeem it at any time. (Wrapped Tokens) - [Staked USDS (STUSDS)](https://thegrid.id/profiles/sky): stUSDS is a vault token representing USDS supplied to fund borrowing by SKY stakers on Sky Protocol. It is used for earning a variable yield on USDS and as collateral in lending markets on Ethereum. Its yield rises with the share of deposits that stakers borrow, so stUSDS carries more risk and a higher potential return than the base savings rate. (Vault Tokens) ## Links - [Documentation](https://developers.sky.money) - [Main](https://sky.money) - [Governance](https://vote.sky.money) - [Forum](https://forum.sky.money) - [Terms of Service](https://docs.sky.money/legal/skybase-international/terms-of-use) - [Privacy policy](https://docs.sky.money/legal/skybase-international/privacy-policy) - [Twitter / X](https://x.com/SkyEcosystem) - [Discord](https://discord.gg/skyecosystem) - [GitHub](https://github.com/sky-ecosystem) - [LinkedIn](https://www.linkedin.com/company/skyecosystem) - [Reddit](https://www.reddit.com/r/MakerDAO) ## Legal This data is provided under two licensing models. Model 1 - open data. The open data core is licensed under the Open Database License (ODbL) — a copyleft/share-alike license allowing free use, modification, and sharing for any purpose. Attribution is required: include "Powered by The Grid" linking to https://thegrid.id wherever the data is used. Derivative databases must be shared under ODbL terms. 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