How to file your Sky (MakerDAO) taxes with Koinly

Sky (formerly MakerDAO) is a decentralized autonomous organization that develops technology for borrowing and saving decentralized stablecoin Dai (now switching to USDS) on the Ethereum blockchain - letting anyone, anywhere lend or borrow money without the need for centralized institutions like banks or crypto exchanges.

1. Sign up to Koinly and choose your country and currency

2. Connect Ethereum with Koinly to import all your trades safely and securely - including ERC-20 tokens

3. Koinly identifies the cost basis of your tokens and coins, as well as your taxable transactions

4. Koinly calculates any capital gains, losses, and income from your taxable transactions

5. Koinly generates your crypto tax report - ready to help you file with your tax office or hand it over to your accountant.

How to import Sky transactions to Koinly automatically

To import your Sky transactions, you'll need to connect each wallet you use to Koinly. This is easy to do, you just need your public address - and we have steps on how to get your public address for all the most popular wallets on our integration pages.

If you're using multiple wallets to interact with Sky, you'll need to get your Ethereum address for each wallet in order to get your complete transaction history. Here’s an example of how it generally works.

On wallet

1. Open or log in to your wallet

2. Select the blockchain you’d like to connect to - in this instance, Ethereum

3. Copy your public address

On Koinly

1. Sign up or log in to your Koinly account and go to the wallets page

2. Search for and select the blockchain you’d like to connect to - in this instance, Ethereum

3. Give your wallet a name - for example, MetaMask

4. Paste your public address

5. Select import

What is Sky?

Sky, formerly MakerDAO, is a decentralized autonomous organization (also occasionally known as a decentralized autonomous corporation).

A DAO is an organization that's designed to be automated by smart contracts and decentralized by existing outside of a single government or corporations, instead, it's controlled by organization members, which can be anyone who wants to invest. 

MakerDAO and the Maker protocol were founded by Rune Christensen and a group of devs in 2015. The idea of the protocol was to allow investors to use their crypto assets as collateral to borrow DAI.

The protocol and organization have developed far beyond this initial scope now. But originally the purpose of the Maker protocol was as simple as any investor with a Web3 wallet - like Metamask - could deposit ETH into the Maker protocol and borrow DAI.

Nowadays, the Sky protocol is a core layer of the Ethereum DeFi ecosystem - supporting many other protocols.

Learn about Dai.

What is SKY?

As well as DAI & USDC, Sky has another native token - SKY. This was previously the MKR Token. The SKY token is a utility and governance token. SKY holders can vote on various aspects of the protocol - like developers, road maps, and proposals.

You can buy SKY tokens through a huge variety of crypto exchanges - both centralized and decentralized. Similarly, you can also hodl and sell SKY tokens.

How to use Sky

To use the Sky protocol, all you need to do is head over to Sky.money and connect using a compatible DeFi wallet, like:

• MetaMask

• Coinbase wallet

• My Ether Wallet

Once you’ve connected your wallet - you can use any of the products available.