Maker, one of the pioneers of decentralized finance (DeFi) lending protocols on Ethereum, has recently undergone a significant rebranding to Sky. This rebranding comes with key upgrades to its decentralized stablecoin system. The stablecoin, formerly known as DAI, has now been rebranded to USDS, while the governance token MKR has been changed to SKY.
The announcement of the rebranding was made on Twitter, revealing that SKY is an “upgraded version” of MKR, which can be obtained by supplying USDS token to the Sky protocol through Sky.money. One DAI can be converted into 1 USDS token, and 1 MKR can be converted into 24,000 SKY tokens. This conversion aims to make individual SKY tokens more affordable than the current price of MKR tokens, which are trading at $2,123 each.
The Sky protocol promises seamless and non-custodial access to Sky’s tokens and rewards through an enhanced user experience. Users can easily swap ETH, USDC, and USDT into USDS, with assets always remaining in user custody for withdrawal without permission. Additionally, users may have the opportunity to earn tokens from other decentralized projects through Sky, subject to decentralized governance approval.
According to MakerDAO co-founder Rune Christensen, the rebranding to Sky signifies the protocol’s commitment to the next evolution of DeFi. Christensen emphasized the protocol’s focus on simplicity and ease of use, allowing users to benefit from innovative features like Sky Token Rewards (STRs) and the Sky Savings Rate (SSR) in eligible jurisdictions.
As part of the rebranding, Maker’s “SubDAOs” have been renamed to “Sky Stars” – DAOs connected to Maker governance that operate semi-independently with their own governance tokens and processes. The Sky Stars are envisioned as Maker’s riskier innovation layer, while Sky itself remains dedicated to securing the USDS stablecoin and mitigating against tail risks.
The largest Sky Star, Spark, is a lending protocol with a Total Value Locked (TVL) of $2.529 billion, making it the third largest lending protocol in DeFi after Aave and JustLend. Maker, excluding certain sub-protocols, has a TVL of $6.44 billion, positioning it as the fourth largest DeFi protocol overall.
Overall, the rebranding of MakerDAO to Sky marks a significant milestone in the DeFi space, signaling a new era of innovation and user-centric design in decentralized finance. The introduction of Sky protocol and its associated features aim to enhance accessibility, usability, and functionality for users seeking to participate in the growing DeFi ecosystem.
