Sky Protocol Token Conversion Audit

Governance and Token Minting Review of Sky Protocol

Sky Protocol is a decentralized system that supports the USDS stablecoin and facilitates conversion between MKR and SKY tokens. The protocol recently introduced changes to its conversion paths and mint assumptions, aligning with updated deployment logic for governance and fixed-supply coordination.

To evaluate the impact of these changes, Sky engaged Cantina for a security audits review. The assessment focused on the deprecation of the SKY→MKR path and assumptions around MKR minting, particularly the risks posed to external protocols and multisigs relying on bi-directional swaps.

Cantina also supports protocol transitions like Sky’s with services such as bug bounty programs, crowdsourced security competitions, and multisig security, helping teams manage upgrade paths without compromising reliability or composability.