Add SKY as Collateral on USDS, USDC, USDT Markets on ETH Mainnet

[Doo_StableLab]

Summary

StableLab proposes the addition of a SKY as Collateral on USDS, USDC, USDT Markets on ETH Mainnet .

Project and Token Description

SKY is an upgraded version of the MKR token. It is an ERC-20 token with permit functionality and EIP-1271 signature validation. The SKY token also enables two-way conversions between SKY and MKR tokens, using the mint and burn functions of both tokens. The conversion rate of the stablecoin is 24,000 SKY to 1 MKR.

Motivation & Benefits to Compound Community

MKR and SKY are one of the most utilized and liquid DeFi governance tokens. By Compound adding SKY as a collateral, it will help to bring new users, growth, and TVL to Compound community.

Sky Protocol has an extensive history of collaborating with DeFi protocols. Therefore, we believe that this is the opportunity for both SKY and Compound to grow even further.

Point of Contact:

@Doo_StableLab

Price Feed Behavior

Is the price feed supported by ChainLink? If not, what entity is responsible for posting price updates? List names and addresses which may update the price feed?

Yes. SKY is supported by ChainLink.

Source:
https://docs.chain.link/data-feeds/price-feeds/addresses?network=ethereum&page=1&search=sky
Address:

0xee10fE5E7aa92dd7b136597449c3d5813cFC5F18

Etherscan:

EACAggregatorProxy | Address 0xee10fE5E7aa92dd7b136597449c3d5813cFC5F18 |...

Relevant Statistics and Links

Website:

https://sky.money/

Twitter:

https://x.com/SkyEcosystem

CoinMarketCap:

Sky price today, SKY to USD live price, marketcap and chart | CoinMarketCap

CoinGecko:

https://www.coingecko.com/en/coins/sky

MarketCap:

1.88 billion USD (SKY and MKR combined) https://info.sky.money/

Contract address:

0x56072c95faa701256059aa122697b133aded9279

Official Docs:

Important Links | Developers

Platform:

SKY is built on Ethereum, as an ERC-20 token

The smart contract code for SKY token:

The smart contract code can be found in thehttps://github.com/makerdao/sky

A security audit report by a third-party security firm:

The audit reports can be accessed here

Community Check

The community should review the following items before approving a new asset.

• Veracity of the info provided.
• Correct configuration of any new contracts (oracle, custom price feeds, asset).
• Documentation quality.
• Favorable results in the execution of the token test suite or integration simulations.

Additionally, we look forward to the community to suggest

• Collateral Factor
• Reserve Factor
• Borrowing Limit

[Gauntlet]

[Gauntlet] SKY Asset Listing on Compound V3 Ethereum USDC, USDT, USDS markets

If the community decides to list SKY on Compound V3 USDS, USDC, USDT markets on Ethereum, Gauntlet recommends the risk parameters below.

Ethereum USDC Comet

Asset	Collateral Factor	Liquidation Factor	Liquidation Penalty	Supply Cap
SKY	73%	79%	15%	144M

Ethereum USDT Comet

Asset	Collateral Factor	Liquidation Factor	Liquidation Penalty	Supply Cap
SKY	73%	79%	15%	144M

Ethereum USDS Comet

Asset	Collateral Factor	Liquidation Factor	Liquidation Penalty	Supply Cap
SKY	73%	79%	15%	96M

Analysis

Description

Sky, formerly known as MakerDAO, is undergoing a transformation involving the migration from the MKR governance token to the SKY token.

• Conversion Rate: Each MKR token can be exchanged for 24,000 SKY tokens. MKR holders will need to convert their tokens to SKY to maintain full usability within the platform. MKR will remain as a legacy wrapper, but migration will become essential for active participation (Source)..

• Timeline: The migration is set to accelerate throughout 2025, with the goal of establishing SKY as the primary governance token (Source).

• Convert Interface: Users can revert SKY into MKR on SKY interface directly. Note that if minting capabilities are removed from either token, conversion for that token will no longer be possible.
  

  

For the latest updates on how to convert MKR to SKY, please see official Sky channels or the Sky developer portal: Sky Developer Portal.

Total Supply:

Total Supply: 1,615,456,776 SKY (~67K MKR)

Source: info.sky.money

Liquidity Sources

The following table summarizes the liquidity sources for SKY and MKR across various decentralized exchanges (DEXs) on Ethereum:

pool_name	pool_type	pool_url	pool_tvl_usd	volume_24h_usd
USDS / SKY	uniswap_v2	Link	$135.45M	$5.65M
SKY / WETH 0.3%	uniswap_v3	Link	$2.63M	$199.62
SKY / WETH 1%	uniswap_v3	Link	$2.51M	$0.00
SKY / MKR 0.05%	uniswap_v3	Link	$255.88K	$18.08K

pool_name	pool_type	pool_url	pool_tvl_usd	volume_24h_usd
MKR / WETH 0.3%	uniswap_v3	Link	$21.68M	$448.69K
MKR / WETH 1%	uniswap_v3	Link	$15.38M	$4.91K
WBTC / MKR 0.01%	uniswap_v3	Link	$5.98M	$3.42M
MKR / WETH	uniswap_v2	Link	$1.48M	$9.64K
MKR / WETH 0.26%	balancer_ethereum	Link	$430.51K	$1.78K
MKR / WETH	sushiswap	Link	$393.78K	$1.89K
SKY / MKR 0.05%	uniswap_v3	Link	$256.49K	$13.25K

Volatility Analysis

SKY → USDC

Metric	Value
Min Price Change Log	-20.88%
Max Price Change Log	19.06%
Annualized Daily Log Volatility	100.28%
Annualized 30D Log Volatility	111.43%

Supply Cap

Considering the liquidity available, we recommend setting a supply cap of 144M SKY (6K MKR) for USDC, USDT markets, and 96M SKY (4K MKR) for USDS market to gauge market demand.

Liquidation Factor (LF), Collateral Factor (CF) and Liquidation Penalty (LP)

Gauntlet recommends setting the Liquidation Factor at 79%, the Collateral Factor at 73% and the Liquidation Penalty at 15%.

Next Steps

We welcome community feedback on the proposed risk parameters.

---

Note: The data provided in this document is accurate as of the publication date. Market conditions and liquidity levels may change, and it is advisable to regularly review these parameters to ensure they remain appropriate.

[mexilc]

Is it possible to see liquidity volatility over time? Would be interesting to see how liquid assets are over time visually to add to this analaysis

[dmitriywoofsoftware]

Add collateral SKY to market USDC on the Mainnet network.

PR - Add SKY as collateral for USDS, USDC, USDT markets by artemwoofsoftware · Pull Request #131 · woof-software/comet · GitHub

Recommendations

№	Name	SKY
1	SupplyCap	144000000(e18)
2	SKY token Decimals	18
3	SKY token Address	0x56072C95FAA701256059aa122697B133aDEd9279
4	Collateral Factor	73%
5	Liquidation Factor	79%
6	Liquidation Penalty	15%

All deployed contracts during deployment/preparation.

№	Contract name	Contract address	Link to contract	Description	Is Verified	Explorer
1	ScalingPriceFeed	0x9662Ab6aBB9b04D711ce1c6bE02DD7e955D61EdC	ScalingPriceFeed | Address 0x9662Ab6aBB9b04D711ce1c6bE02DD7e955D61EdC | Etherscan	Price feed for SKY/USD	True	Etherscan

Actions

№	Action name	Link	Status
1	Run Slither	Link	Fail
2	Run Unit Tests	Link	Success
3	Run Forge Tests	Link	Success
4	Run ESLint	Link	Success
5	Run Semgremp	Link	Success
6	Run Contact Linter	Link	Success
7	Run Tests With Gas Profiler	Link	Success
8	Run Scenarios	Link	Success
9	Run Prepare	Link	Success
10	Run Enact impersonate	Link	Success
11	Run Enact impersonate	Link	Run by delegator

Artifacts

№	Name	Value
1	Migration name	1739941370_add_sky_as_collateral
2	Branch name	woof-software/add-sky-stables
3	Prepare id	13439521113
4	Network	mainnet
5	Deployment	usdc
6	Enact id (simulate)	3443796915

Description

Proposal summary\n\n

Compound Growth Program [AlphaGrowth] proposes to add SKY into cUSDCv3 on Ethereum network. This proposal takes the governance steps recommended and necessary to update a Compound III USDC market on Ethereum. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. The new parameters include setting the risk parameters based on the recommendations from Gauntlet.\n\n

Further detailed information can be found on the corresponding proposal pull request and forum discussion.\n\n\n

Proposal Actions\n\n

The first action adds SKY asset as collateral with corresponding configurations.\n\n

The second action deploys and upgrades Comet to a new version.

[dmitriywoofsoftware]

Add collateral SKY to market USDS on the Mainnet network.

PR - Add SKY as collateral for USDS, USDC, USDT markets by artemwoofsoftware · Pull Request #131 · woof-software/comet · GitHub

Recommendations

№	Name	SKY
1	SupplyCap	96000000(e18)
2	SKY token Decimals	18
3	SKY token Address	0x56072C95FAA701256059aa122697B133aDEd9279
4	Collateral Factor	73%
5	Liquidation Factor	79%
6	Liquidation Penalty	15%

All deployed contracts during deployment/preparation.

№	Contract name	Contract address	Link to contract	Description	Is Verified	Explorer
1	ScalingPriceFeed	0xEF819FE60af67698567f03095A029AE1a1935007	ScalingPriceFeed | Address 0xEF819FE60af67698567f03095A029AE1a1935007 | Etherscan	Price feed for SKY/USD	True	Etherscan

Actions

№	Action name	Link	Status
1	Run Slither	Link	Fail
2	Run Unit Tests	Link	Success
3	Run Forge Tests	Link	Success
4	Run ESLint	Link	Success
5	Run Semgremp	Link	Success
6	Run Contact Linter	Link	Success
7	Run Tests With Gas Profiler	Link	Success
8	Run Scenarios	Link	Success
9	Run Prepare	Link	Success
10	Run Enact impersonate	Link	Success
11	Run Enact impersonate	Link	Run by delegator

Artifacts

№	Name	Value
1	Migration name	1739941365_add_sky_as_collateral
2	Branch name	woof-software/add-sky-stables
3	Prepare id	37550190341
4	Network	mainnet
5	Deployment	usds
6	Enact id (simulate)	13443809179

Description

Add SKY as collateral into cUSDSv3 on Mainnet\n\n

Proposal summary\n\n

Compound Growth Program [AlphaGrowth] proposes to add SKY into cUSDSv3 on Ethereum network. This proposal takes the governance steps recommended and necessary to update a Compound III USDS market on Ethereum. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. The new parameters include setting the risk parameters based on the recommendations from Gauntlet.\n\n

Further detailed information can be found on the corresponding proposal pull request and forum discussion.\n\n\n

Proposal Actions\n\n

The first action adds SKY asset as collateral with corresponding configurations.\n\n

The second action deploys and upgrades Comet to a new version.

[dmitriywoofsoftware]

Add collateral SKY to market USDT on the Mainnet network.

PR - Add SKY as collateral for USDS, USDC, USDT markets by artemwoofsoftware · Pull Request #131 · woof-software/comet · GitHub

Recommendations

№	Name	SKY
1	SupplyCap	144000000(e18)
2	SKY token Decimals	18
3	SKY token Address	0x56072C95FAA701256059aa122697B133aDEd9279
4	Collateral Factor	73%
5	Liquidation Factor	79%
6	Liquidation Penalty	15%

All deployed contracts during deployment/preparation.

№	Contract name	Contract address	Link to contract	Description	Is Verified	Explorer
1	ScalingPriceFeed	0x20b0138DAa8033b5D732b80D858e96A5fc27ab9e	ScalingPriceFeed | Address 0x20b0138DAa8033b5D732b80D858e96A5fc27ab9e | Etherscan	Price feed for SKY/USD	True	Etherscan

Actions

№	Action name	Link	Status
1	Run Slither	Link	Fail
2	Run Unit Tests	Link	Success
3	Run Forge Tests	Link	Success
4	Run ESLint	Link	Success
5	Run Semgremp	Link	Success
6	Run Contact Linter	Link	Success
7	Run Tests With Gas Profiler	Link	Success
8	Run Scenarios	Link	Success
9	Run Prepare	Link	Success
10	Run Enact impersonate	Link	Success
11	Run Enact impersonate	Link	Run by delegator

Artifacts

№	Name	Value
1	Migration name	1739941375_add_sky_as_collateral
2	Branch name	woof-software/add-sky-stables
3	Prepare id	13439561710
4	Network	mainnet
5	Deployment	usdt
6	Enact id (simulate)	37564409287

Description

Add SKY as collateral into cUSDTv3 on Mainnet\n\n

Proposal summary\n\n

Compound Growth Program [AlphaGrowth] proposes to add SKY into cUSDTv3 on Ethereum network. This proposal takes the governance steps recommended and necessary to update a Compound III USDT market on Ethereum. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. The new parameters include setting the risk parameters based on the recommendations from Gauntlet.\n\n

Further detailed information can be found on the corresponding proposal pull request and forum discussion.\n\n\n

Proposal Actions\n\n

The first action adds SKY asset as collateral with corresponding configurations.\n\n

The second action deploys and upgrades Comet to a new version.