This repository includes 2 smart contracts:
- SKY token
- MkrSky Converter
This is a standard erc20 implementation with regular permit functionality + EIP-1271 smart contract signature validation.
A permissionless converter of Mkr to Sky.
Upon initialization, an amount of Sky equivalent to the total supply of Mkr is minted to it.
It is then assumed that further minting of Mkr will not happen.
In case the Sky amount in the converter later exceeds the Mkr supply, governance can use the burn function to reduce the Sky balance.
The above can happen for example because of burning of Mkr outside of the converters, using the mkrToSky path in the old converter, or because of Sky donations to the new converter.
The exchange rate is generally 1:rate (value defined as immutable), while there is also a configureable fee.
The swap mkrToSky function receives Mkr, burns it and sends the equivalent amount in Sky from the balance, minus the fee.
The accumulated fees can be collected by governance.
The legacy MkrSky converter supported bi-directional conversions.
Upon initialization of the new converter, only the mkrToSky path will be supported.
It is expected that once the new converter fee becomes non-zero, the mkrToSky path in the old converter will also be disabled.