What is Sky?

Sky is a decentralized finance (DeFi) protocol that evolved from MakerDAO's 2024 rebrand, with the goal of improving scalability, usability, and governance. Through its non-custodial platform, Sky.money, users can trade, convert, stake, and earn yields while maintaining control of their assets. The protocol introduced its native token, SKY, which replaced MKR at a conversion rate of 1 MKR to 24,000 SKY. It also launched USDS, a new stablecoin designed to succeed DAI.

What is SKY?

The native token of the protocol is SKY, which operates on the Ethereum blockchain. It serves multiple core functions within the ecosystem, including governance participation and staking. SKY holders can participate in protocol decisions and engage in features like the "Staking Engine." There is a total supply of 23.46 billion units of SKY, with 23.43 billion units currently in circulation.

Risk Statement

Before trading any crypto assets it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

No securities regulatory authority or regulator in Canada has evaluated or endorsed the Crypto Contracts or any of the crypto assets made available through the platform.

Wealthsimple has performed an assessment of whether SKY can be supported by Wealthsimple's platform, including whether SKY is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.

We evaluated SKY based on publicly available information, including (but not limited to):

• The creation, governance, usage and design of SKY, including the source code, security and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that first created SKY;
• The supply, demand, maturity, utility and liquidity of SKY;
• Material technical risks associated with SKY, including any code defects, security breaches and other threats concerning SKY and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them;
• Legal and regulatory risks associated with SKY, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of SKY; and
• Statements made by regulators or securities regulatory authorities in Canada and other jurisdictions regarding whether SKY, or generally about whether the type of crypto asset, is a security and/or a derivative.

Wealthsimple monitors ongoing developments related to crypto assets available on its platform for significant changes that may affect Wealthsimple's original assessment of those assets, including Wealthsimple's assessment of the application of securities and derivatives laws. Any significant changes relating to SKY may result in changes to this Crypto Asset Statement and/or Wealthsimple's ability to support SKY.

Like all other crypto assets, there are some general risks to investing in SKY. These include short history risk, volatility risk, liquidity risk, demand risk, forking risk, cryptography risk, regulatory risk, concentration risk, electronic trading risk and cyber security risk. Please review the Wealthsimple Crypto Product Risk Disclosure for additional discussion of general risks associated with the crypto assets made available through the platform.

We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading SKY. Investors should perform their own assessment to determine the appropriate level of risk for their personal circumstances.

Wealthsimple is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Investments Inc. dated December 18, 2023 (the Decision).

The statutory rights of action for damages and rescission in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under securities legislation of other jurisdictions of Canada, do not apply in respect of this Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.

Last updated: September 11, 2025