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 Total value locked Methodology

## 1. Overview

Total Value Locked (TVL) measures the total USD value of all collateral assets deposited in the Sky protocol. Sky TVL represents the aggregate value of assets backing the USDS and DAI stablecoins across different collateral types including vault positions, non-vault collaterals, legacy real-world assets (RWA), and Lockstake Sky tokens. The calculation aggregates collateral values from multiple sources and converts them to USD to provide a comprehensive view of protocol security and utilization.

## 2. Data sources

The Sky TVL calculation draws from several key data sources:

- **Sky protocol state data**: Ethereum blockchain state containing vault positions, collateral balances, debt positions, and collateral type configurations from the Sky protocol's core contracts
- **Sky ilk registry data**: Protocol registry information mapping collateral types to token addresses and join contract configurations
- **Ethereum token transfer events**: Parsed `Transfer` events for Lockstake Sky tokens to track minting and burning activities
- **End-of-day token price feeds**: Daily token price data for USD conversion across all supported collateral tokens
- **Token metadata**: Token decimal precision information for proper value calculations

## 3. Step-by-step calculation

### Component A: Vault collaterals

- **Purpose**: Calculate the USD value of overcollateralized assets deposited in Sky protocol vaults
- **Logic**: Extract vault collateral positions from Sky protocol state data by reading `ink` balances for each vault and collateral type combination. Filter for active collateral types that have non-zero join contract addresses, indicating they are standard vault collaterals. Convert raw `ink` values from 18-decimal precision to token amounts, then convert to USD using end-of-day price feeds. Aggregate across all vaults for each collateral type and timestamp.
- **Key fields**: `ink` (collateral balance), `vault_id` (unique vault identifier), `ilk` (collateral type identifier), `token_address` (underlying collateral token)

### Component B: Non-vault collaterals

- **Purpose**: Calculate the USD value of non-vault collateral positions where collateral value equals debt value
- **Logic**: Identify non-vault collaterals by filtering for collateral types with zero join contract addresses, excluding Lockstake Sky which is handled separately. For these positions, calculate the collateral value as debt amount (`art` × `rate`), where `art` represents the debt amount in 18-decimal precision and `rate` represents the debt multiplier in 27-decimal precision. This approach treats the collateral value as equal to the debt value for these special collateral types.
- **Key fields**: `art` (debt amount), `rate` (debt multiplier), `debt` (calculated as art × rate)

### Component C: Legacy RWA collaterals

- **Purpose**: Calculate the USD value of legacy real-world asset collaterals
- **Logic**: Similar to non-vault collaterals but specifically filtered for collateral types with names containing "RWA" prefix. Calculate collateral value as debt amount (`art` × `rate`) using the same decimal scaling as non-vault collaterals. These represent older real-world asset positions that are backed by off-chain assets with values tracked on-chain.
- **Key fields**: `art` (debt amount), `rate` (debt multiplier), `debt` (calculated collateral value)

### Component D: Lockstake sky collaterals

- **Purpose**: Calculate the USD value of Lockstake Sky tokens in circulation
- **Logic**: Track the total supply of Lockstake Sky tokens by monitoring `Transfer` events from Ethereum. Identify mints as transfers from the zero address and burns as transfers to the zero address. Calculate daily supply changes by summing mints and subtracting burns, then maintain a running cumulative supply total. Convert the token supply to underlying Sky token amounts and then to USD using end-of-day price feeds.
- **Key fields**: `supply` (cumulative token supply), `value` (daily supply change from mints and burns)

### Final aggregation

- **Combining components**: Union all four collateral components (vault collaterals, non-vault collaterals, legacy RWA collaterals, and Lockstake Sky collaterals) into a single dataset, with each component contributing its USD-denominated collateral value
- **Currency conversion**: Apply end-of-day token prices to convert all collateral amounts to USD, using the `convert_to_usd_and_correct_decimals` macro for consistent price application and decimal handling
- **Time aggregation**: Group all collateral values by daily timestamps, aggregating across vault IDs and collateral types to calculate total collateral value per day
- **Final calculation**: Sum all collateral component values to produce the final TVL metric, representing the total USD value of all assets securing the Sky protocol. Apply the `finalize_metric_tvl` macro to ensure proper schema formatting and fill any missing daily values with zeros to maintain consistent time series data

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

Total value locked (TVL)

Total value locked (TVL) — value deposited into the project's applications.

SkySKY

Total value locked

Total value locked

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