The protocol’s well-known decentralized stablecoin, Dai (DAI), has been rebranded to USDS, whereas the native governance token, Maker (MKR), has been upgraded and renamed to Sky (SKY).
Rune Christensen, co-founder of MakerDAO, described the rebranding as a major step within the “subsequent evolution of DeFi.” According to Christensen, the protocol’s new design emphasizes simplicity and ease of use, permitting customers to learn from improvements reminiscent of Sky Token Rewards (STRs) and the Sky Savings Rate (SSR), offered they reside in eligible jurisdictions.
The Sky Protocol will proceed to function as a decentralized, community-governed, and non-custodial system, very similar to its predecessor, MakerDAO. The rebranding effort is meant to make decentralized finance extra accessible to a broader viewers, significantly as DeFi seeks to draw customers from centralized exchanges (CEXs).
Token Conversion and Accessibility
As a part of the transition, MKR tokens might be exchanged for SKY tokens at a ratio of 1:28,000, considerably growing the provision of SKY tokens and making them extra accessible to a bigger variety of folks. This bigger provide goals to enhance the consumer expertise for these seeking to put money into the Sky ecosystem.
Both the previous and new tokens will exist in parallel, permitting holders to decide on whether or not to change their DAI and MKR tokens for the brand new USDS and SKY tokens, or to proceed utilizing the unique tokens. The new tokens will likely be issued on September 18, 2024, offering customers with the choice to take part within the up to date ecosystem.
Decentralized Entities and New SubDAOs
In addition to the rebranding, Maker’s SubDAOs will likely be renamed to Sky Stars, sustaining their standing as impartial decentralized tasks that function throughout the Sky ecosystem. The first of those Sky Stars is Spark, an open-source liquidity protocol that at present gives a 6% yield on DAI deposits and permits customers to borrow USDS at a 7% rate of interest.
The rebranding and overhaul of Maker into Sky are a part of a broader technique to broaden the DeFi ecosystem to a scale akin to, and even bigger than, main gamers like Tether. The initiative is a key element of the “Endgame” mission, a multi-year plan led by Christensen to remake Maker and improve its function within the rising DeFi panorama.
The protocol’s development is anticipated to be pushed by native token rewards for USDS and SKY holders, accessible by the brand new Sky.cash software. However, these reward accruals will likely be restricted in sure jurisdictions, together with the United States and the United Kingdom.
As the rebranding course of continues, the complete transformation of the platform, together with the combination of those new entities and tokens, is anticipated to unfold over the approaching months.
