Staking SKY has become one of the most exciting ways to take part in the growing Sky ecosystem. Sky, which was earlier known as MakerDAO, has evolved into a more scalable and community-driven platform that keeps things simple yet powerful.
At the heart of this protocol are two main tokens: USDS, a stablecoin pegged to the US dollar, and SKY, the governance token that gives you real influence in the network. Unlike just holding SKY, staking lets you put your tokens to work while supporting the protocol at the same time.
When you stake SKY, you are not only helping to secure the system but also earning rewards through the Sky Protocol’s Staking Engine. This process maintains the ecosystem’s strength and encourages long-term participation. With the upgraded SKY token replacing MakerDAO’s MKR, staking has become an even more important feature of the platform. It’s simple, rewarding, and a direct way to contribute to Sky’s future.
How to Stake Sky (SKY)?
Staking SKY tokens on the Sky Staking Engine gives you the opportunity to earn rewards while also participating in governance. The process is straightforward and does not require a minimum threshold, making it accessible for all token holders. Follow the steps below to stake your SKY tokens securely and unlock additional benefits.
Navigate to the Sky Staking Engine
Start by visiting the Sky Staking Engine. The platform runs in a non-custodial way, which means you keep ownership of your tokens throughout the staking process. This ensures transparency and control as your tokens remain linked to your own wallet at all times.
Connect Your Wallet
Once on the staking page, click “Connect Wallet.” You can choose from several Ethereum-compatible wallets, such as MetaMask or WalletConnect. Approve the prompt that appears to finalise the connection. This connection allows the staking engine to interact with your wallet for transactions and token management.
Supply SKY Tokens
After connecting your wallet, enter the amount of SKY tokens you want to stake. The platform does not impose a minimum requirement, so you can stake any amount you prefer. This flexibility makes staking easy for both small and large token holders who want to participate in rewards.
Approve and Stake
To proceed, approve the transaction in your wallet. This step grants the staking engine permission to access your SKY tokens for staking. After approval, confirm the staking transaction. Your tokens then officially move into the staking contract, and the rewards mechanism activates automatically.
Create a Borrow Position (Optional)
The staking engine also allows you to borrow USDS against your staked SKY. To do this, specify the borrowed amount and confirm the transaction in your wallet. This option lets you access liquidity without giving up staking rewards, offering a balance between earning and flexibility.
Delegate Voting Power
Staking SKY also enables participation in on-chain governance. You can delegate your voting power to another user or vote directly using the same staking interface. Alternatively, you can use the Sky Governance Portal for broader governance actions. This ensures your tokens contribute to shaping the platform’s future.
Claiming Rewards
Rewards accumulate in real time while your tokens remain staked. You can claim them whenever you wish by clicking “Claim Rewards” on the staking dashboard. Confirm the transaction in your wallet, and the earned rewards will transfer directly to your account without delays.
Unstaking Your SKY
If you decide to exit, click “Unstake” on the staking engine. Enter the number of SKY tokens you want to withdraw and confirm the transaction. Keep in mind that governance rules may require a short exit period before your tokens return to your wallet. This mechanism helps maintain network stability while protecting stakers.
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Best Places to Stake Sky (SKY)
Here’s where you can stake your Sky tokens easily:
The Staking Engine lets users lock SKY tokens in a vault to earn rewards, borrow USDS, and delegate governance power. Users unlock rewards immediately without facing exit fees, and they retain control of their tokens via a non‑custodial vault system. Each vault remains flexible, enabling users to stake, delegate or borrow SKY assets as needed. Governance remains on‑chain, allowing users to participate actively through delegation. The system works transparently on Ethereum and empowers user control while unlocking multiple benefits using a single locked SKY deposit. It balances flexibility, security, and protocol engagement effortlessly.
Pros:
- It allows you to stake SKY, borrow USDS, and delegate voting from a single locked deposit.
- It imposes no exit fee, making staking and unstaking swift and cost‑efficient.
- It runs on a non‑custodial vault system, so you keep full control over your assets.
- It works on Ethereum and integrates seamlessly into the wider Sky ecosystem.
- It supports flexible management with multiple vaults per address for tailored control.
Cons:
- You must understand vault management, collateral, and borrowing risks, which may challenge casual users.
- You face liquidation risk if borrowed USDS against your staked SKY fails to meet collateral requirements.
- You rely on smart‑contract infrastructure; bugs or exploits could pose threats despite audits.
- You may need to pay Ethereum gas fees for actions like staking, borrowing, or withdrawing.
Bitrue offers a robust platform for users to stake Sky (SKY) tokens through flexible staking options. The platform lets users earn daily rewards while retaining the freedom to withdraw at any time. It launched the SKY/USDT trading pair on 23 July 2025, offering seamless market access for stakers. Bitrue provides competitive APR, reports indicate up to 20% APR on SKY staking with no fixed end date, which appeals to regular income seekers. It supports a wide range of staking products, earning each token more value through an intuitive and user‑friendly interface.
Pros:
- It enables flexible staking of SKY with the ability to withdraw at any time.
- Users can earn daily returns on their staked SKY holdings.
- Bitrue supports SKY trading via the SKY/USDT pair since July 2025.
- Reports indicate it offers up to 20% APR on SKY staking indefinitely.
Cons:
- SKY staking on Bitrue may carry smart contract or platform risks.
- The APR can vary, which complicates earning predictions.
- This platform does not match the liquidity levels of major exchanges.
- It may lack extensive customer support compared with larger global platforms.
Benefits of Staking Sky (SKY)
Staking Sky (SKY) offers investors more than just attractive returns. It creates a balance between earning rewards, keeping full control over assets, and enjoying additional features within the Sky ecosystem. Unlike traditional staking methods that often involve risks of custodianship or hidden lock-ups, Sky ensures complete transparency and flexibility. Here are the key benefits you gain when you stake SKY tokens.
Retain Full Control of Your Assets
When you stake SKY, you keep your tokens in your own wallet at all times. You authorise every transaction yourself, ensuring no external party holds your funds. This removes counterparty risk, unexpected lock-ups, or custodial restrictions. Investors gain peace of mind knowing their tokens remain in their possession while still earning staking rewards.
Unlock Liquidity Through USDS Borrowing
Staking Sky does more than just reward you; it also unlocks liquidity. By staking your SKY, you can mint and borrow USDS against your collateral. This feature allows you to use your tokens for borrowing without unstaking them. You continue receiving rewards while gaining access to funds for trading, investing, or participating in DeFi opportunities.
Participate Actively in Governance
Staking SKY empowers you to play a direct role in the platform’s governance. You can delegate your tokens to trusted delegates or vote on proposals and protocol upgrades yourself. This participation ensures the community drives key decisions, giving every staker influence over Sky’s future.
Compound and Enhance Your Yield
Sky staking rewards accumulate in real time, and you can claim them whenever you like. By re-staking those rewards, you create the potential for compound growth. If you borrow USDS, you can also funnel it into yield farms or Sky’s savings rate programme to layer on additional returns. This flexibility makes your SKY tokens work harder for you.
Accessibility and Flexibility for Every Investor
Sky staking does not demand a minimum amount to start, which makes it accessible for both small and large investors. You can unstake anytime without exit fees, giving you complete freedom. Rewards accrue instantly, and you decide when to claim them. This flexibility makes staking SKY practical for both long-term holders and short-term participants.
Earn Competitive Rewards
Staking SKY offers some of the highest returns in the market, with annual percentage rates (APR) currently ranging between 13% and 15%. The rates are determined through on-chain governance and fluctuate with supply and demand. This creates a fair, transparent system that rewards stakers generously for their contribution.
Frequently Asked Questions
What Is The Sky Protocol Staking Engine And How Does One Use It?
The Sky Protocol features a Staking Engine that allows holders of SKY tokens to stake them within a decentralised, non-custodial system. By depositing tokens into this Staking Engine, users can generate staking rewards, borrow USDS, and delegate governance voting power. There is no minimum requirement and staking or unstaking can be done anytime, with no exit fees or custodial risks involved.
How Do I Begin Staking SKY Tokens On Sky.money?
To start staking SKY on Sky.money, connect a compatible Web3 wallet like MetaMask and navigate to the staking section. You then approve the staking contract and supply your SKY tokens. The platform’s dashboard will display your staked amount, current rewards in USDS, and the live APY. You can claim or compound earned rewards whenever you desire.
What Sort Of Returns Can I Expect From Staking SKY?
Rewards from staking SKY are paid in the stablecoin USDS. The current annual percentage yield (APY) hovers around 17.3%, which is a competitive option in the DeFi market. Receiving rewards in a less volatile asset like USDS means you’ll enjoy stable earnings rather than being exposed to SKY’s price fluctuations, offering a reliable source of passive income.
Can Staking SKY Tokens Affect My Governance Rights?
Actually, staking SKY does not diminish your governance rights. When you stake, your tokens remain in a non-custodial contract and your governance power is intact. You may also delegate voting authority while earning rewards, which means you can stay involved in protocol governance while your assets generate yield.
Are There Fees Or Minimums Associated With SKY Staking?
Staking SKY incurs no exit fees and there is no mandatory minimum amount to participate. You’re free to stake or unstake at any time without penalty. The system is designed to allow maximum flexibility and control, ensuring that you remain in full possession of your tokens throughout the staking process.
How Does The Protocol Determine Staking Reward Rates?
The rewards rate for SKY staking is not fixed; it is decided through the protocol’s governance via decentralised, on-chain voting. This means rates may change over time based on governance decisions and the overall pool dynamics. Users can monitor the current rate through the Sky.money interface to stay informed.
How Has The Launch Of USDS Staking Rewards Impacted SKY’s Price?
Following the introduction of USDS staking rewards on 2 June 2025, SKY’s value has climbed by more than 17%. This surge reflects market anticipation of stable yields and governance opportunities offered to stakers. The rewards program gives holders more reason to retain or accumulate SKY, thereby influencing its market performance positively.
