Integrators

MKR Upgrade Notice

Display a notice prominently on your interfaces wherever MKR or SKY tokens are referenced. This helps users understand the upgrade process and the steps required to avoid the Delayed Upgrade Penalty.

The Sky Ecosystem Governance community has voted to make SKY the sole governance token of the Sky Protocol. You can no longer vote with MKR. MKR holders are encouraged to upgrade to SKY promptly to maintain the ability to participate in governance and avoid the Delayed Upgrade Penalty. For more information, please visit the MKR to SKY Upgrade Hub.

Integrator Categories

This section provides guidance for various platform types to ensure a seamless transition from MKR to SKY tokens. As the protocol upgrades from MKR to SKY, integrators play a critical role in helping users navigate this change. The transition involves a one-directional conversion mechanism with a time-sensitive fee structure that increases after September 2025.

Each category below addresses specific integration points and offers actionable steps to:

• Support both MKR and SKY tokens during the transition period
• Help users convert their MKR to SKY through the Converter V2 contract
• Update interfaces to accommodate the new token while maintaining user experience
• Mitigate risks associated with diminishing MKR liquidity and potential price volatility

Review the Upgrade Timeline and Codebase Change Analysis sections to identify the necessary steps that best fit your use case. You can contact the Integrations team at integrations@jetstream.gg to discuss your specific situation and develop a custom action plan.

Wallets

List SKY Token

Ensure your wallet lists the SKY token with the proper brand assets:

• Token symbol: SKY
• Token address: 0x56072C95FAA701256059aa122697B133aDEd9279
• SKY token logo: Available on the brand assets page

Facilitate MKR to SKY Upgrade

Direct users to the Sky Portal where they can upgrade from MKR to SKY. You can facilitate this conversion by integrating with the Converter V2 contract.

DEXes

Integrate with Converter Contract for Optimal Liquidity

The Converter V2 contract provides the most reliable source of MKR to SKY swap liquidity. Users can convert their tokens at a fixed ratio without incurring slippage. To support your users during the transition period:

1. Add SKY Token Support to your trading pairs and interfaces
2. Implement Direct Integration with the Converter V2 contract for seamless conversion
3. Display Conversion Information to educate users about the fixed conversion ratio
4. Update Trading UI to highlight the MKR to SKY upgrade opportunity

As MKR liquidity decreases over time, routing users to the Converter V2 contract will deliver a superior user experience compared to traditional market-based trading.

Exchanges

Direct users to navigate the upgrade process on the Sky portal. You can also integrate with the Converter V2 contract to upgrade your users’ MKR balances to SKY efficiently on their behalf.

Rewards and Borrow Positions

The Staking Engine introduces important changes that affect all integrators who offer Seal Engine functionality. Key improvements include the removal of exit fees and transition from MKR to SKY token support. Exit fees in the current Seal Engine V1 have also been set to 0 to allow current users to migrate without incurring any additional fees.

If you currently offer an interface to Seal Engine, you must update it to support Staking Engine functionality.

Key Changes

• Token Support: Staking Engine only accepts SKY tokens, while Seal Engine V1 supported both MKR and SKY tokens.
• Exit Fee Removal: The exit fee previously charged when withdrawing from positions has been eliminated. The exit fee value is set to zero in Seal Engine V1 and the feature is removed in V2.

Migration Strategies

For Positions Without Debt

The recommended approach for positions without debt is a three-step process:

1. Close the existing Seal Engine V1 position to withdraw MKR
2. Upgrade the withdrawn MKR to SKY using the Converter V2 contract
3. Open a new position in Staking Engine with the converted SKY

Users can maintain the same reward settings as their previous positions after migration.

For Positions With Outstanding Debt

The Sky Portal supports a specialized migration pathway that allows users to:

1. Transfer their position from Seal Engine V1 to Staking Engine
2. Automatically convert their MKR to SKY in the process
3. Maintain their existing debt without requiring repayment to complete the migration, provided there is sufficient space in the debt ceiling of Staking Engine

Lending Protocols

Implement these measures to support a smooth MKR to SKY transition:

1. List the SKY token with identical lending parameters as MKR
2. Update MKR Debt Ceiling to 0 to limit new positions with MKR.
3. Notify MKR borrowers about the upcoming conversion deadline and fee schedule
4. Provide clear documentation for closing MKR positions efficiently

As MKR holders convert to SKY, the diminishing MKR supply creates two significant risks:

• Liquidity Risk: Thinning MKR markets will make it increasingly difficult for borrowers to source tokens for loan repayment
• Price Volatility Risk: Reduced market depth may trigger severe price fluctuations, potentially leading to unexpected liquidations

The one-directional conversion mechanism (MKR → SKY only) creates a progressively challenging environment for borrowers who delay transition. Additionally, once the Late Conversion Phase begins in mid-September.

For your lending interface, add a prominent alert informing users of the conversion timeline and directing them to the SKY Portal at sky.money.

Oracles

Avoid implementing automatic price conversions between MKR and SKY tokens. After the governance upgrade, the tokens will trade independently with MKR becoming increasingly illiquid as trading volume and market availability decrease. Due to the one-directional conversion mechanism, accurate price extrapolation between the tokens will not be reliable, even with the defined conversion ratio between MKR to SKY.

The MKR to SKY conversion ratio, initially set at 1:24000, is subject to reduction by governance through the fee parameter in the Converter V2 contract. This fee parameter acts as a mechanism to decrease the effective conversion rate, making the fixed-ratio relationship between the tokens subject to change.