Collateral supports protocol debt
Sky's core accounting system tracks vault collateral and stablecoin debt. The Vat records collateral types, debt scaling, safety-margin prices, debt ceilings and debt floors. A vault's normalized debt and its current debt including accrued fees are different accounting quantities. The Sky Lending label on this page follows the data provider's module identity.
Lending, savings and governance are separate
The Sky ecosystem includes distinct stablecoin, savings and governance contracts. Collateral locked to support debt is not the same position as a stablecoin held in a savings product. A governance-token market price is a different measure again. Read the contract or module behind a balance instead of treating all Sky-branded products as one interchangeable receipt.
What a collateral TVL figure omits
Reported capital is not the amount a borrower can safely draw, nor a redemption quote for every stablecoin. Collateral parameters and accrued debt determine a vault's capacity and risk. A dollar-valued collateral balance can rise with market prices without additional units being deposited. Other ecosystem allocations may share exposures, so avoid summing their reported balances without studying scope.
Governance and liquidation dependencies
- Oracle prices and safety margins affect whether debt is sufficiently backed.
- Authorized modules, collateral adapters and governance permissions are significant parts of the trust model.
- A generic threshold calculator illustrates a scenario; it does not reproduce Sky's full collateral-liquidation system.