Sky Protocol’s SKY Token Surges as staking Rewards Launch
The SKY token, now the sole governance token of Sky Protocol, has experienced a significant price increase. In the past 24 hours, it rose by over 8%, reaching a high of $0.073. This surge is largely due to the launch of staking rewards for SKY holders.
Staking rewards with the USDS stablecoin are now available for SKY token holders. USDS, formerly known as DAI, is Sky Protocol’s upgraded token, pegged to the U.S. dollar. SKY stakers can earn rewards based on the protocol’s performance, with half of the surplus USDS revenue going to them.
Users can continue to participate in governance through voting or delegation while earning these rewards. The token’s price has recovered from a low of $0.065, following a broader market dip on May 29. At the time of writing, SKY was trading at $0.070.
SKY staking became available after the token was approved as the sole governance token on May 19. MKR holders can upgrade their tokens to SKY at a fixed rate of 1 MKR for 24,000 SKY. Those who don’t upgrade by September 18, 2025, will face a time-based penalty.
Sky Protocol remains a leading DeFi lending platform, with a total value locked of $5.21 billion, according to DeFiLlama.
