Overcollateralized borrowers deposit funds into Sky and receive DAI stablecoin.

Sky is a non-custodial stablecoin protocol built on Ethereum. Sky (previously MakerDAO) was founded by Rune Christensen and launched in 2015.

SKY tokenholders own and govern the protocol. They currently take all of the total interest and PSM fees paid by borrowers (revenue). Sky’s investors include a16z, Polychain, IOSG Ventures, etc.

governance

github

twitter

discord

etherscan

website

Stablecoin issuers

Sky | Fees and revenues breakdown

# Sky Circulating asset market cap Methodology

## 1. Overview

Asset market cap circulating for Sky protocol represents the total amount of circulating stablecoin supply that is actively available in the market, excluding tokens held in various protocol buffers and lending platforms. This metric answers the question "How much Sky stablecoin is actually circulating and available for trading/usage?" The calculation uses the core debt from Sky's VAT contract and subtracts various exclusions where tokens are locked or idle in protocol infrastructure.

## 2. Data sources

**Blockchain events:**
- Parsed Ethereum `Transfer` events for DAI, spDAI, and variableDebtDAI tokens
- Parsed Arbitrum `Transfer` events for USDS and Savings USDS tokens  
- Parsed Base `Transfer` events for USDS and Savings USDS tokens

**Smart contract state data:**
- Sky protocol VAT debt state snapshots from core contract system
- Morpho protocol idle market state snapshots including DAI shares, total shares, and supply assets

**External data:**
- Token metadata including decimal precision information
- End-of-day token price feeds for USD conversion

## 3. Step-by-step calculation

### Component A: Core debt tracking
- **Purpose**: Establishes the baseline total outstanding debt in the Sky protocol
- **Logic**: Extracts daily snapshots of the debt value from Sky's VAT (Virtual Accounting Table) smart contract. The raw state value uses 45-decimal precision (RAD format) and gets normalized by dividing by 10^45 to convert to standard decimal format. This represents the total amount of stablecoin debt issued by the protocol across all collateral types and user positions.
- **Key fields**: `state_value` from VAT debt function, normalized to `amount` in standard decimal format

### Component B: Spark DAI share calculation  
- **Purpose**: Calculates Sky protocol's proportional share of DAI deposited in Spark lending protocol
- **Logic**: Tracks `Transfer` events for spDAI tokens to/from Sky's designated address (`0xafa2dd8a0594b2b24b59de405da9338c4ce23437`) to determine Sky's balance. Also tracks spDAI total supply via mint/burn events (transfers to/from zero address) and variableDebtDAI supply changes. Calculates Sky's proportional share as: (spDAI total supply - variableDebtDAI supply) multiplied by (Sky's spDAI balance / total spDAI supply). This represents DAI that Sky has deposited in Spark but is not actively circulating.
- **Key fields**: `value` amounts from transfer events, `balance` tracking Sky's spDAI holdings, `supply` for total spDAI circulation

### Component C: Morpho idle market DAI share
- **Purpose**: Determines Sky's share of DAI sitting idle in Morpho lending protocol  
- **Logic**: Uses state snapshots to calculate the ratio of Sky's DAI shares to total DAI shares in Morpho's idle market, then applies this ratio to the total supply assets to determine the actual DAI amount. The calculation is: (Sky DAI shares / total DAI shares) × total supply assets. This captures DAI deposited by Sky in Morpho that is not actively being lent out.
- **Key fields**: `state_value` from DAI shares and total shares snapshots, `amount` representing Sky's proportional DAI allocation

### Component D: LitePSM buffer tracking
- **Purpose**: Tracks DAI held in LitePSM (Lite Peg Stability Module) buffers
- **Logic**: Monitors `Transfer` events for DAI tokens flowing to and from the LitePSM contract address (`0xf6e72db5454dd049d0788e411b06cfaf16853042`). Incoming transfers are positive balance changes, outgoing transfers are negative. Daily balance changes are aggregated and cumulative balances calculated using window functions. This represents DAI temporarily held in PSM buffers for stability operations.
- **Key fields**: `value` from transfer events, cumulative `amount` representing total DAI buffer balance

### Component E: Cross-chain USDS/Savings USDS balances
- **Purpose**: Tracks USDS and Savings USDS tokens held in PSM3 and ALM proxy contracts on Arbitrum and Base
- **Logic**: Monitors `Transfer` events for USDS and Savings USDS tokens flowing to and from PSM3 and ALM proxy contract addresses on both Arbitrum and Base chains. For each chain, tracks transfers to PSM3 (`0x2b05f8e1cacc6974fd79a673a341fe1f58d27266` on Arbitrum, `0x1601843c5e9bc251a3272907010afa41fa18347e` on Base) and ALM proxy addresses. Calculates daily balance changes and maintains cumulative running balances. This captures cross-chain stablecoin holdings in protocol infrastructure.
- **Key fields**: `value` from multi-chain transfer events, daily balance changes aggregated by chain and token

### Final aggregation  
- **Combining components**: All exclusion components (Spark DAI share, Morpho idle market share, LitePSM buffers, cross-chain balances) are unioned together and grouped by timestamp for daily totals
- **Currency conversion**: All exclusion amounts are converted to USD using end-of-day token price feeds, ensuring consistent currency denomination across different stablecoins (DAI, USDS, Savings USDS)  
- **Time aggregation**: Daily boundaries are applied using timestamp truncation to day level, with forward-filling to ensure continuous time series for all missing dates
- **Final calculation**: Outstanding supply equals total VAT debt minus the sum of all USD-converted exclusions. The result represents the amount of Sky stablecoins actively circulating rather than locked in protocol infrastructure. This value becomes the asset market cap circulating metric after applying standard metric finalization including zero-filling strategies and chain availability filtering.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Tokenized asset value / AUM (assets under management) — price times circulating supply.

SkySKY

Circulating asset market cap

Circulating asset market cap

Competitive landscape

Chain breakdown