# Sky Protocol

**Type:** DeFi lending protocol (formerly MakerDAO)
**Status:** Active
**Domain:** internet-finance

## Overview

Sky Protocol (formerly MakerDAO) is a DeFi lending protocol offering the Sky Savings Rate (SSR), a governance-controlled stablecoin yield mechanism.

## Timeline

- **2026-05-01** — Sky Savings Rate (SSR) offering 5-8% APY depending on governance decisions, competing with Aave and Morpho in the DeFi lending market

## Key Metrics (May 2026)

- **Sky Savings Rate:** 5-8% APY (governance-controlled)
- **Position:** Major DeFi lending protocol alongside Aave and Morpho

## Mechanism

The Sky Savings Rate is set through governance decisions, allowing the protocol to adjust yields based on market conditions and protocol strategy. This represents a transition from the original MakerDAO DSR mechanism.

## Market Context

Sky Protocol competes in the 3-10% APY stablecoin lending market, significantly above traditional bank savings rates (~0.01%) and roughly competitive with high-yield online savings accounts (4-5%).