Sky

# About Sky

Sky is a decentralized finance protocol built on the Ethereum blockchain, centered on DAI stablecoin and MakerDAO governance. The network operates a lending and borrowing system secured by cryptocurrency collateral, with SKY as its governance token. Token holders vote on protocol parameters including collateral ratios, stability fees, and risk management decisions. The system generates yield through stability fees paid by borrowers and distributes protocol revenue to governance participants.

Traders monitor Sky for its structural role in DeFi liquidity and its sensitivity to Ethereum network conditions and collateral asset performance. SKY's governance token mechanics create recurring voting incentives that influence trader positioning and participation patterns. The protocol's scale in stablecoin issuance means its operational health—collateral composition, liquidation dynamics, fee structures—signals broader credit conditions in decentralized finance. Derivatives activity around governance decisions and collateral management cycles provides tactical trading opportunities distinct from broader crypto market movements.