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.

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Sky | Fees and revenues breakdown

# Sky Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the portion of protocol-generated fees that are distributed to liquidity providers, stakers, or other supply-side participants. For Sky, this metric is set to zero because 100% of all generated fees—including stability fees, liquidation penalties, and trading fees—are retained by the protocol treasury rather than being shared with external liquidity providers. The complete fee calculation pipeline is tracked to ensure accurate reporting of the underlying fee base.

## 2. Data sources

- **Blockchain events**: `UpdateAddress` events from `ChainLog` contracts; `frob`, `grab`, `fold`, `move`, and `suck` function calls from `Vat` contracts; `drip` function calls from `Jug` contracts; `Bark` events from `Dog` contracts; `Bite` events from `Cat` and `CatV0` contracts; `Fees` events from `D3MHub` contracts; `JAR_Toss` events from `RWA007_A`, `RWA009_A`, `RWA014_A`, `RWA015_A`, `MCD_LITE_PSM_USDC_A`, `MCD_PSM_GUSD_A`, and `MCD_PSM_PAX_A` contracts; and ERC-20 `Transfer`, `Mint`, and `Burn` events from `DAI` and `USDS` asset contracts, covering Ethereum
- **External data**: End-of-day price feeds for `DAI` and `USDS`

## 3. Step-by-step calculation

### Component A: Total protocol fee calculation

- **Purpose**: Calculate the complete fee pool generated by Sky across all revenue streams.
- **Logic**: Fees are aggregated from seven primary sources including stability fees, liquidation fees, PSM trading fees, D3M interest, RWA settlements, Star settlements, and Spark interest shares. Stability fees are calculated by tracking interest rate changes through parsed `drip` function calls and outstanding debt positions via `frob` and `grab` operations. Star settlements are identified through manual `grab` operations from `Vat` contracts for specific allocator collateral types, adjusted for revenue sharing by subtracting USDS asset transfers from total debt increases. Spark's share of interest is calculated and subtracted from the fee pool for specific historical periods. Liquidation fees are determined by combining seized collateral with settled auction debt, excluding system management transactions. PSM trading fees are extracted from Peg Stability Module interactions where DAI or USDS flows to the protocol's balance sheet. D3M interest and RWA settlements are aggregated from Direct Deposit Module payments and real-world asset jar toss events.
- **Key fields**: `amount`, `wad`, `rad`, `block_timestamp`, `collateral_id`, `collateral_name`, and `token_address`.

### Component B: Currency standardization

- **Purpose**: Convert all fee amounts to USD for consistent reporting.
- **Logic**: End-of-day asset prices are applied to convert native asset amounts to USD values. For transactions before December 1, 2024, amounts are treated as `DAI` assets, while USDS assets are used for later transactions following the protocol's transition. Asset contract addresses are used for price conversion to match against price feed data and apply the appropriate exchange rate.
- **Key fields**: `token_address`, `timestamp`, and `price_usd`.

### Component C: Temporal aggregation

- **Purpose**: Aggregate fee data to daily time boundaries for consistent metric reporting.
- **Logic**: All transaction-level fee data is aggregated using `timestamp_trunc` to daily boundaries. Fee amounts are summed by day, chain, and product while the breakdown by fee type and collateral category is preserved. No double-counting across different fee capture mechanisms is ensured through transaction hash deduplication.
- **Key fields**: `timestamp`, `chain_id`, and `product_id`.

### Component D: Final aggregation and supply-side allocation

- **Purpose**: Combine all components and apply the supply-side allocation rate.
- **Logic**: Total protocol fees from all sources are summed together after USD conversion and temporal aggregation. daily boundaries are established using timestamp truncation, with all fees within a day summed together. After the total daily protocol fee amount in USD is calculated, the supply-side allocation is applied by multiplying the total by zero. Zero supply-side fees are reported for all time periods, reflecting that all accumulated fees are retained by the protocol treasury rather than being distributed to external supply-side participants.

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

Portion of fees distributed to service providers or supply-side participants.

SkySKY

Supply-side fees

Supply-side fees

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