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Editorial policyRebranded from MakerDAO in 2025, Sky Protocol is targeting a USDS circulating supply of $20.6 billion in 2026 — a doubling from current levels. Gross protocol revenue is forecast at $611.5 million, and the Sky Agent Network launched April 2, letting independent firms deploy USDS across DeFi.
Skip this briefing if you wanted protocol mechanics rather than what changed. Use the related guides for how the system works. Dates below are desk-research stamps, not a live wire.
MakerDAO, the protocol behind DAI — DeFi's longest-standing decentralised stablecoin — rebranded to Sky Protocol in 2025 as part of a broader overhaul of its governance and product architecture. The rebrand was accompanied by the introduction of USDS, a new stablecoin designed to replace DAI over time, and SKY governance tokens to replace MKR.
The transition was controversial within the Maker community. Some longtime holders rejected the rebrand and continued to hold MKR and DAI. Sky's response was pragmatic: both DAI and USDS are supported simultaneously, with a permissionless migration contract allowing 1:1 conversion in either direction.
Sky's technical architecture also evolved. The Endgame framework — Rune Christensen's long-term roadmap — introduced 'SubDAOs' that can deploy their own strategies and governance, while the core Sky protocol provides the stablecoin backbone. This modular approach aims to scale governance participation without requiring all decisions to go through a single, slow DAO vote.
The Sky Agent Network, launched April 2, 2026, is Sky Protocol's most ambitious expansion yet. It allows independent firms — described as 'Agents' — to borrow USDS from the Sky treasury and deploy it across diversified DeFi strategies, subject to Sky governance-approved risk parameters.
Each Agent operates independently, choosing its own strategies within the approved parameter set. Profits above a minimum threshold flow back to the Sky protocol treasury. Agents that underperform can have their allocation reduced through governance votes.
The model is conceptually similar to a DeFi venture capital structure: Sky provides capital at zero cost (USDS can be minted), Agents provide operational expertise and market access, and the protocol earns a share of returns without directly managing the complexity of hundreds of individual DeFi strategies.
Sky's 2026 financial targets are ambitious. Gross protocol revenue is forecast at $611.5 million — primarily from the stability fees charged on USDS minting and from the yield on approximately $3.4 billion in tokenized Treasuries held as protocol reserves.
USDS circulating supply stands at approximately $10.3 billion as of May 2026. The target of $20.6 billion would require attracting significant new demand — likely through competitive Savings Rate (Sky Savings Rate, the USDS equivalent of the DAI Savings Rate) and expanded Agent Network deployment.
Sky holds approximately $3.4 billion in tokenized real-world assets — primarily US Treasuries through BlackRock's BUIDL and Ondo Finance's OUSG — as collateral backing USDS. At current Treasury yields (~4.2%), this RWA portfolio generates approximately $143 million annually in protocol revenue independent of DeFi activity.
Convex, Curve, Resupply, Inverse Finance and Frax share collateral, gauges and stablecoin rails. Read the flywheel first if you are new to the stack.
FAQ
Rebranded from MakerDAO in 2025, Sky Protocol is targeting a USDS circulating supply of $20.6 billion in 2026 — a doubling from current levels. Gross protocol revenue is forecast at $611.5 million, and the Sky Agent Network launched April 2, letting independent firms deploy USDS across DeFi.
Events like this affect the broader DeFi ecosystem by influencing market sentiment, regulatory expectations, protocol adoption, and on-chain activity. Understanding the context helps investors and users make more informed decisions about their exposure to decentralised finance protocols.
Significant DeFi developments — whether protocol upgrades, regulatory actions, or market milestones — can shift capital flows, yield opportunities, and risk profiles across the ecosystem. Staying informed through credible sources is essential for risk management in DeFi.
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