Maker, a prominent DeFi lending protocol on Ethereum, has undergone a significant rebranding to “Sky” alongside essential upgrades to its decentralized stablecoin system. This transformation includes renaming the stablecoin from DAI to USDS and changing the governance token from MKR to SKY. These changes aim to enhance the accessibility and affordability of the protocol for users.
The conversion process involves swapping 1 DAI for 1 USDS token and 1 MKR for 24,000 SKY tokens. This change is expected to reduce the barrier to entry for users, as MKR tokens were previously trading at a high price. With this new conversion rate, individual SKY tokens become more accessible to a broader range of investors.
The Functionality of the Sky Protocol
Powered by the decentralized Sky Protocol, Sky.money provides users with seamless and non-custodial access to Sky’s tokens and rewards. The protocol facilitates the swapping of ETH, USDC, and USDT into USDS while ensuring that users maintain custody of their assets at all times. Additionally, users may have the opportunity to earn tokens from other decentralized projects through the Sky protocol.
According to MakerDAO co-founder Rune Christensen, the rebrand to Sky signifies a strategic move towards the next phase of DeFi evolution. Emphasizing simplicity and ease of use, the protocol introduces innovative features such as Sky Token Rewards (STRs) and the Sky Savings Rate (SSR) for eligible users. This rebrand also includes renaming Maker’s “SubDAOs” to “Sky Stars,” creating a more cohesive governance structure.
Sky Stars, previously known as SubDAOs, are interconnected DAOs within the Maker governance ecosystem that operate semi-independently. These entities serve as the riskier innovation layer of Maker, while Sky focuses on safeguarding the USDS stablecoin and mitigating potential risks. The leading Sky Star, Spark, is a lending protocol with a TVL of $2.529 billion, positioning it as one of the top DeFi protocols globally.
The rebranding of Maker to Sky represents a significant milestone in the evolution of DeFi. By enhancing accessibility, affordability, and functionality, the Sky protocol aims to streamline decentralized finance for a broader audience. With innovative features and a robust governance structure, Sky is poised to play a key role in shaping the future of the decentralized financial ecosystem.