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A.4 - The Protocol Scope

The Protocol Scope regulates the maintenance and development of the core Sky Protocol and its critical, non-collateral components. The Protocol Scope defines all rules for protocol engineering.
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The two core tokens, USDS and SKY, play the central role in the usability and tokenomics of the Sky Ecosystem.
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USDS is the Stablecoin product of the Sky Protocol. It is designed to remain stable against USD, and its supply is regulated through the Peg Stability Module and the Allocation System, as governed by the Stability Scope.
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In the Endgame Token Launch Phase, USDS is launched as an upgrade to Dai, offering new features, including Token Rewards. Dai can be exchanged to and from USDS at a rate of 1:1.