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Is Sky (SKY) halal?

Prohibited

1 condition out of six fails.

Verdict calculated by Halal Bourse's published rules from an investigation of primary sources (project documentation, registers, decisions), conducted on 10/07/2026 and not reviewed by a human.

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The asset

Governance token of the Sky protocol (formerly MakerDAO), issuer of the USDS and DAI stablecoins against collateralized loans (ERC-20, Ethereum) Issuer: No identifiable issuer: governance is exercised on-chain by SKY holders, with no legal entity (“Sky DAO”); SKY replaces MKR (fixed conversion of 1 MKR for 24,000 SKY).

SKY is used to vote, after staking, on savings rates, collateral policies, capital allocation and risk frameworks; the protocol can mint and sell it to recapitalize itself. The protocol's net surplus can go back to stakers through market buybacks and distributions. Supply of 23.46 billion SKY on Ethereum (Etherscan, October 7, 2026).

Why this verdict

  1. Permissible purpose : not met. The purpose of the protocol whose governance token is SKY is to issue stablecoins against loans: borrowers pay stability fees, and the capital is deployed by agents (loans, credit, debt securities); this revenue funds the stablecoin's savings rate and the value going to SKY stakers. Governance is effective (on-chain votes). Two independent sources (Sky documentation and DefiLlama) describe where the revenue comes from.
    • « Yield is funded by protocol revenue, including fees from collateralized loans and returns from deployed capital across the Sky Agent Network. » Sky Ecosystem Insights (documentation) (2026-10-07)
    • « Stability fees charged on DAI/USDS loans, liquidation income from collateral auctions, and PSM (Peg Stability Module) fees from USDC/DAI conversions » DefiLlama (API, methodology) (2026-10-07)
  2. No riba : to be verified or tolerated case. The MiCA white paper states that SKY gives no right to any income or claim, but the protocol documentation provides that the net surplus, from borrowing fees and deployed yields, goes back to stakers through buybacks and distributions, paid in either SKY or USDS: the interest is collected by the protocol and flows back to the token, which can be read in the protocol's rules.
  3. No gambling : met. A spot purchase is of a transferable ERC-20 token recorded on Ethereum; it is not a contract on a price difference.
    • « SKY token is an ERC-20 token with permit functionality and EIP-1271 signature validation. » Sky Protocol Docs (jeton SKY) (2026-10-07)
    • « Max Total Supply 23,459,804,203 » Etherscan (2026-10-07)
  4. No excessive gharar : met. The rights (governance, staking), the conversion rule with MKR, the minting mechanism used to recapitalize the protocol and the delay imposed on governance decisions are published; minting is decided by contracts and by SKY holders, with no issuer or anonymous party identified. One co-founder, Rune Christensen, is named by the press.
  5. Real ownership : met. SKY is an ERC-20 token held in a personal wallet; voting and rewards go through staking, whose withdrawal terms were not read. The purchasing platforms were not studied.
    • « Add Token to MetaMask (Web3) » Etherscan (2026-10-07)
    • « Holders who stake SKY govern the protocol entirely onchain, voting on savings rates, collateral policies, capital allocation, and risk frameworks. » Sky Ecosystem Insights (documentation) (2026-10-07)
  6. No fraud or manipulation : to be verified or tolerated case. No sanction, deception toward buyers or regulator warning found (AMF and I-SCAN: no results). One risk signal under rule A.8 is found: the supply can be increased (minting by the MKR-SKY converter and by the debt auctions that recapitalize the protocol), under governance control. A single signal: to be verified.
    • « If the system were to ever become undercollateralized after all other risk capital layers are exhausted, the protocol can mint and sell SKY to recapitalize. » Sky Ecosystem Insights (documentation) (2026-10-07)
    • « The creation, modification and governance of SKY token minting are determined through on-chain smart contracts and decentralised governance procedures operated collectively by SKY token holders. » Bitstamp Europe (MiCA white paper for SKY) (2026-03-19)
  7. Revenus illicites de l'émetteur : to be verified or tolerated case. share not published

Tolerance case

T2. SKY is neither the native currency of a network (T1) nor a stablecoin (T3). The protocol's revenue is interest in nature: stability fees on loans, liquidation and stability-module revenue, and yield on capital deployed by the agents; it funds the savings rate, then the protocol's surplus. The protocol's financial dashboard (financial.skyeco.com) is loaded by script and could not be read: no figure-based breakdown is given and the share of impermissible income cannot be quantified.

Contract security scan

GoPlus security scan of the SKY contract on Ethereum: 16,402 holders; top ten wallets excluding exchanges and contracts 5.5%; code published. Signals found: Minting right: the supply can be increased by the contract owner (is_mintable). Reading: GoPlus does not report an owner; the minting is the protocol's (MKR-SKY converter, debt auctions), under governance control. This is a signal under A.8, the only one on the list (top ten wallets 5.5%, no freezing, no tax, no proxy, code published). A single signal: to be verified.

Opinions found during the research

Opinions reported as read, named for what they are; they do not enter into the calculation of the verdict.

What could not be verified

Sources read

Other cryptos analyzed

General information: neither investment advice nor a fatwa. Verdict calculated by published rules, from financial statements read automatically and not reviewed by a human. Read the methodology