SKY — the intended currency

Status: pre-launch. This page describes a selected research blueprint; it does not establish a live currency, credit facility or financial rights.

Current monetary documentation — 2026-09-21. The selected September baseline replaces July’s monetary recipe for current documentation. Selection does not activate a runtime or adopt production rates.

What SKY is

SKY is the floating payment balance in Skyzai’s selected monetary research blueprint. A modeled loan draw locks exclusive ZAI collateral, creates SKY for the borrower and records matching SKY debt. Transfers move existing balances.

ZAI collateral secures the modeled debt. It does not peg SKY’s exchange value to ZAI, fiat or energy, promise redemption into freshly minted ZAI, or guarantee that collateral can be sold for enough SKY to repay. Holding SKY is not mechanically a short position in ZAI.

Credit, interest and repayment

• A collateral pledge or stake alone creates no SKY. Drawing the loan creates principal and matching debt. Buying additional ZAI with borrowed SKY is a separate transaction that increases ZAI exposure.
• The selected rate uses x = D / (q × p), where D is debt in SKY, q is pledged ZAI and p is SKY per ZAI. For 0 ≤ x < 1, r = β × x/(1−x) is an annualized rate when β has annual units. LTV, borrowing utilization and exposure are distinct quantities; production rates and intervention rules remain unselected.
• Newly accrued interest increases debt once and issues matching SKY once to the modeled AMM’s LP owners, or to escrow when no LP shares exist. LP shares are pool claims, not ZAI inventory, DAV equity or voting rights.
• Actual repayment uses existing SKY, pays interest before principal and burns the repaid amount under the selected accounting closure. Full repayment releases remaining collateral. Swaps, staking and collateral release do not themselves mint SKY.
• Finite market depth can leave a shortfall. Liquidation records actual proceeds and residual default; write-off and loss allocation require a further source-owned contract.

Read the SKY lifecycle and ZAI collateral explanation.

October 20 continuous-wallet successor

The owner direction proposes continuous payment from actual available wallet funds under bounded standing terms. It is not implemented and does not require a new signature for each already-covered charge or an extra balance sent to a separate contract merely to fund it.

A successfully paid charge must not also be capitalised or issued again. Charge asset, recipient, transfer or burn, unpaid amounts, debit priority, supply treatment and exit remain decisions. September's accounting identities and simulation evidence do not qualify this successor. Replaying after a partition must not double-charge or invent liquidity. Optional target-ratio re-leveraging needs separate scope and post-trade checks; the curve's asymptote is not a default barrier. Read the current overview.

Participation and unresolved extensions

The selected ZAI model redistributes existing nonqualifying inventory to eligible stake; it is not July’s fixed-rate-staking recipe. Qualifying collateral and pool ZAI can retain stake eligibility, with each ZAI counted once. These model rules do not establish verified useful work, consensus authority or outside income.

Borrowing existing consenting ZAI inventory against SKY and separately selling it is a proposed extension, with lender rights, availability, costs, cover, withdrawal and shortfall rules unresolved. It does not create new ZAI or grant automatic access to AMM reserves. Monetary implementation and economic qualification remain open; documentation alone supplies no custody, mandate or launch evidence.