What is Sky.money?

Most stablecoin holders are doing a job they did not sign up for. They hold dollars onchain, and somewhere between holding them and putting them somewhere useful is a research project nobody asked for: forty browser tabs, three Discord servers, an hour on audit reports, a debate on X about funding rates. The final decision is almost always made on partial information.

Finding opportunities to do more with stablecoins is harder than it should be. Most yield products are complicated to access, volatile in their rate, or opaque about where the yield actually comes from.

Sky Protocol is built to be none of those things. It has been fueling the stablecoin economy for more than seven years (since the MakerDAO days), through every major crisis DeFi has produced, without a single core protocol exploit. And Sky.money is the interface that provides you with direct access to Sky Protocol and the onchain primitives that fuel it.

What you can do on Sky.money

Open the app interface, there, you’ll be able to convert your stablecoins to USDS, and then to sUSDS. The exchange rate between sUSDS and USDS begins compounding against the Sky Savings Rate in real time in your own wallet. Whenever you want to withdraw your supplied assets from Sky Protocol, you can redeem back to USDS in a single transaction.

That is the core flow. Alongside it, Sky.money provides you with access to three other ways to put stablecoins to work, each at a different point on the risk curve. The Sky.money interface allows you to pick between the options that best suit your risk tolerance, the choice is yours.

stUSDS

You can supply USDS into the expert module to get the stUSDS token. stUSDS offers a high-performance yield profile designed for expert users. When you supply USDS into the stUSDS module, your capital is used to fund SKY-backed borrowing.

The stUSDS rate is derived from the SKY Borrow Rate less the stUSDS Accessibility Reward on the portion of your capital that’s currently being borrowed (utilized). You’ll gain access to the stUSDS rate as long as there’s demand from SKY borrowers, and any portion of your supplied USDS that isn’t being utilized accrues the Sky Savings Rate.

Sky Ecosystem Rewards

You can also participate in the growth of Sky Agents & partners, and get rewarded in their own native tokens or points. 

By supplying USDS into the Ecosystem Rewards module, you earn points or governance tokens from the Sky Agent Network. Each Sky Ecosystem partner protocol distributes a set amount of tokens or points to the pool available through Sky.money. Your rewards are proportional to your share of the total USDS supplied. As the pool fluctuates, your share adjusts automatically.

Sky Vaults

Sky Vaults expand your options beyond the benchmark yield for stablecoins with the Sky Savings Rate (SSR). They provide you with access to a suite of yield strategies ranging from conservative to advanced. 

Morpho has integrated Sky Protocol infrastructure to deploy Sky Vaults, in order to enable access to a wider range of yield strategies based on their own unique spin on Sky Protocol primitives.

While the Sky Savings Rate is governance-set by Sky Protocol for stable and predictable outcomes, Sky Vault returns are dynamic. They depend purely on the performance and market utilization of their specific strategy. Depending on market conditions, Sky Vaults can yield more or less than the SSR at any given time.

Where the yield comes from

The Sky Savings Rate is set by Sky Governance, paid out from Sky Protocol revenues, generated from its operations. The largest source of which is the Sky Agent Network: an independent network of capital allocators that tap into USDS liquidity from Sky Protocol at a fixed Base Rate and deploy it across diversified yield strategies.

The Base Rate they pay back, along with the rest of Sky Protocol's revenue, pools in the Surplus Buffer, the protocol's balance-sheet layer. Sky Governance then sets the Sky Savings Rate and the SSR accrues into sUSDS automatically over time.

Here is how that works:

1. Sky Protocol issues USDS, the ecosystem's fully backed unit of account, and makes that liquidity available to Sky Agents.
2. The Sky Agent Network are sovereign businesses. They borrow USDS at a fixed Base Rate and deploy it across the yield strategies they specialize in: collateralized loans, US Treasury bills, real-world asset positions like institutional credit and housing finance, and more. 
3. They pay a Base Rate back to the protocol. 
4. That Sky Agent revenue, along with the rest of the paid out inflows on Sky Protocol, pools in the Surplus Buffer.
5. Governance then sets the Sky Savings Rate as a parameter, calibrated against total revenue capacity and the protocol's reserves targets, and allocates the rest across the Solvency Reserve, SKY staking rewards, and token buybacks.

The result is that no single counterparty, market, or strategy determines the yield you’re given access to. The output is a diversified and fully overcollateralized way to tap into yield sources on your idle stablecoins. The Sky Ecosystem’s (formerly MakerDAO) seven-year operating record is what disciplined governance and diversified capital produce over time. It is not an accident.

Common questions