Sky Protocol is the 2024 evolution of MakerDAO, aiming to make decentralized finance more accessible, scalable, and community-governed. Its governance and utility token, SKY, powers protocol votes, incentives, and risk management across Ethereum and Layer 2s like Base.

Important address note: The contract at 0x9b5037b68c6ed686a1f433e5eef9513bb1801b07 is widely referenced as SKY on Base, but official Sky docs do not yet list a SKY contract for Base. USDS and sUSDS are explicitly documented on Base; SKY’s Base address is not. Always verify with official sources before transacting.

What SKY does (in plain English)

• Governance: SKY holders vote on protocol parameters—collateral types, stability fees, risk settings, upgrades, and ecosystem direction.
• Staking and rewards: SKY can be staked and delegated for governance. In addition, USDS holders can earn SKY via Sky Token Rewards (STRs), which support ecosystem growth.
• Risk management backstop: If the system becomes under-collateralized, governance can authorize mint-and-sell mechanisms to cover shortfalls and protect the USDS peg.

Tokenomics at a glance

• MKR → SKY upgrade: Holders can opt to convert MKR to SKY at a 1:24,000 ratio.
• Rewards emission: Sky Protocol distributes 600 million SKY annually to USDS holders via STRs.
• Supply design: Some sources describe a fixed supply (post-MKR conversion) supported by buybacks, while others emphasize the protocol’s emergency mint capability for risk events. Treat this as an area to double-check in the latest Sky governance communications.

SKY on Base: what’s actually live

• SkyLink bridging: Sky operates on Ethereum and connects to L2s such as Base via SkyLink, enabling lower fees and faster transactions. Official docs explicitly support USDS and sUSDS transfers between Ethereum and Base.
• Contract verification caveat: Official Sky docs and the Sky Ecosystem site list Base addresses for USDS/sUSDS, but not for SKY at the time of research. If you’re considering interacting with SKY on Base, verify the token address using multiple official channels first.

How to verify before you trade

1. Start with official sources:
   • Sky Protocol tokens: https://sky.money/tokens/sky
   • Sky ecosystem tokens: https://sky.money/ecosystem/tokens
   • SkyLink Base–Ethereum bridge docs: https://docs.sky.money/skylink/base-eth-native-bridge
2. Cross-check explorers:
   • Suspected SKY on Base (verify independently): https://basescan.org/token/0x9b5037b68c6ed686a1f433e5eef9513bb1801b07
   • Ethereum SKY (underlying): https://etherscan.io/address/0x56072c95faa701256059aa122697b133aded9279
3. Compare metadata: Name, symbol, decimals, holders, and bridge mappings should align across official sites and explorers.
4. Check community channels: Confirm address announcements in the Sky community and governance forums before moving funds.

Where to trade SKY on Base (do your own checks first)

• gmgn.ai smart terminal (Base): https://gmgn.ai/base/token/fV1R5sZ5_0x9b5037b68c6ed686a1f433e5eef9513bb1801b07
• Uniswap on Base (search for SKY by contract and verify): https://app.uniswap.org/
• Aerodrome on Base (verify contract before pairing): https://aerodrome.finance/
  Tip: Always paste the verified contract address instead of searching by name. Double-check liquidity depth and any trading tax flags before swapping.

Key protocol features to know

• USDS and SSR: USDS is Sky’s over-collateralized stablecoin. Users can earn a savings rate on USDS via the Sky Savings Rate (SSR), a low-friction yield option.
• STR incentives: Sky Token Rewards distribute SKY to USDS participants and ecosystem contributors to bootstrap usage and liquidity.
• Modular “Sky Stars”: Sky fosters semi-autonomous product “Stars” with their own governance and treasuries. Spark (a DeFi lending platform) is the first Star and integrates tightly with USDS.

Benefits of using Base for SKY

• Lower fees and faster finality compared to L1.
• Access to Base-native liquidity and DeFi apps.
• Cross-chain mobility via SkyLink to move assets back to Ethereum or to other supported L2s.

Risks and considerations

• Address authenticity: Because official docs don’t list a SKY Base contract yet, address spoofing risk is non-trivial. Verify with multiple official sources before any swap.
• Protocol and market risk: DeFi carries smart contract, liquidity, and volatility risks. Regulatory actions may affect protocols, bridges, or stablecoins.
• Tokenomics clarity: Reconciling “fixed supply plus buybacks” with the “emergency mint” backstop requires up-to-date governance reading. Rely on current Sky proposals, not outdated summaries.

Quick reference links

• Sky Protocol home: https://sky.money/
• SKY token overview: https://sky.money/tokens/sky
• USDS stablecoin: https://sky.money/tokens/usds
• SkyLink bridge info: https://sky.money/skylink
• Base explorer (suspected SKY on Base—verify): https://basescan.org/token/0x9b5037b68c6ed686a1f433e5eef9513bb1801b07
• Ethereum SKY on Etherscan: https://etherscan.io/address/0x56072c95faa701256059aa122697b133aded9279

Bottom line
SKY is the governance backbone of Sky Protocol, bringing MakerDAO’s heritage to a refreshed multi-chain design. On Base, users can aim for cheaper, faster interactions—provided they verify the correct contract address and understand the evolving tokenomics. If you choose to trade, use reliable interfaces, paste the verified address, and consider tools like gmgn.ai alongside established Base DEXs to assess liquidity, slippage, and safety.