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Sky Protocol, formerly known as MakerDAO, has launched a highly successful staking rewards program, quickly attracting over $568 million in staked SKY tokens.
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The program offers an attractive annualized yield of 16% paid in USDS, alongside additional incentives such as governance tokens and ecosystem participation rewards.
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According to a recent COINOTAG report, more than 1.6 million USDS has already been distributed to users within the first week, signaling strong community engagement.
Sky Protocol’s new staking rewards program drives over $568M in SKY staked, offering 16% annual USDS yields and enhanced governance benefits.
Sky Protocol’s Staking Rewards Program Surpasses $568 Million in Locked Value
Sky Protocol’s transition from MakerDAO marks a significant milestone with the launch of its staking rewards program, which has rapidly garnered substantial participation. The program enables users to stake SKY tokens and earn USDS stablecoin rewards at an annualized rate of 16%. This high yield, combined with the protocol’s DeFi-first approach, allows users to maintain full control over their assets while benefiting from multiple revenue streams. Early data reveals that over 1.6 million USDS has been distributed in just the first week, underscoring the program’s immediate traction and appeal within the crypto community.
Multi-Faceted Incentives Enhance User Engagement and Governance
Beyond the basic yield, Sky Protocol’s reward system integrates additional incentives to foster long-term ecosystem growth. Participants can earn governance tokens and accrue points linked to upcoming projects, creating a layered incentive structure that promotes active involvement. The protocol’s recent rebranding includes an upgrade mechanism where over 420,000 MKR tokens have been converted to SKY, unlocking voting rights and staking rewards. This upgrade process is supported by a penalty mechanism scheduled for implementation in September 2025, designed to encourage timely participation and sustain token value.
Technical Analysis Indicates Strong Support and Potential Price Movement
The SKY token price has responded positively to the staking launch, appreciating more than 12% and currently trading near $0.0824. Technical indicators suggest robust underlying momentum: the token has surpassed its 20-day moving average and remains above the 50- and 200-day averages, signaling sustained bullish sentiment. The relative strength index (RSI) is approaching 66, indicating strength but also cautioning about a potential short-term pullback. Additionally, the moving average convergence divergence (MACD) has turned positive, reinforcing the upward trend.
Price Outlook: Key Levels to Watch for Traders
Market participants should monitor the $0.085 resistance level closely, as a decisive break accompanied by volume could propel SKY toward the psychological $0.10 mark. Conversely, if buying momentum diminishes, a retracement to the $0.072 support zone—where multiple moving averages converge—may occur. This level is critical for maintaining the bullish structure, and a drop below short-term support at $0.078 could signal a deeper correction.
Conclusion
Sky Protocol’s staking rewards program has demonstrated strong initial success, combining attractive yields with governance participation to engage its community effectively. The token’s technical setup supports continued bullish momentum, though traders should remain vigilant of key support and resistance levels. As the protocol advances its post-MakerDAO rebranding and governance overhaul, Sky is well-positioned to sustain growth and enhance value for its stakeholders.
