MakerDAO rebrands as Sky, unveils new USDS stablecoin and SKY governance token MakerDAO rebrands as Sky, unveils new USDS stablecoin and SKY governance token
The Sky rebranding introduces "Sky Stars" projects and upgrades stablecoin and governance tokens to drive DeFi innovation.
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Updated: Aug. 27, 2024 at 1:45 pm UTC
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MakerDAO has rebranded to Sky and announced the names of its upcoming upgraded tokens, USDS and SKY, set for September 18. The release of the names follows its recent confirmation of upgrades to its token ecosystem.
The rebranding is part of MakerDAO’s “Endgame Plan,” a vision laid out by co-founder Rune Christensen aimed at transforming the structure of the DAO to enhance DeFi’s growth, accessibility, and resilience. Central to this transformation is introducing new tokens—USDS, an upgraded version of the DAI stablecoin, and SKY, the new governance token replacing MKR.
Sky’s launch aims to help it shift toward simplifying the user experience in DeFi, with an emphasis on making the protocol more accessible to a broader audience. The rebranding also introduces a novel concept called “Sky Stars,” which are independent decentralized projects within the Sky ecosystem. These Sky Stars, beginning with the Spark protocol, are designed to foster rapid innovation while maintaining autonomy within the broader Sky framework.
Per the announcement, USDS will function as an upgradable version of DAI, enabling users to transition their existing DAI holdings into the new stablecoin. Similarly, MKR holders will have the option to upgrade their tokens to SKY, with each MKR converting into 24,000 SKY tokens. The upgraded tokens will provide enhanced functionality, including access to the Sky Savings Rate (SSR) and Sky Token Rewards (STRs), designed to reward user participation in the protocol.
In conjunction with the rebranding, a new platform called Sky.money will be launched to facilitate non-custodial access to the Sky protocol. However, it’s important to note that some features, such as the SSR and STRs, will be restricted in certain jurisdictions due to regulatory considerations.
The transition from MakerDAO to Sky is claimed to be a foundational shift aimed at scaling DeFi’s unique benefits. As Christensen noted, the evolution to Sky represents a step towards creating a more robust and user-friendly decentralized financial infrastructure, leveraging the success and security of the Maker protocol to drive the next phase of DeFi development.
Rebranding amid DeFi tensions
In 2024, MakerDAO has faced growing tensions with Aave. This discord stems from MakerDAO’s decision to back a significant portion of DAI with Ethena Labs’ synthetic dollar, USDe, a move perceived as risky by some in the DeFi community.
Aave expressed concerns over MakerDAO’s governance actions, which are seen as increasingly aggressive and unpredictable. This has led to a proposal from Aave to cease supporting DAI as collateral on its platform, citing potential contagion risks associated with MakerDAO’s new direction. The proposal reflected a broader unease within the DeFi sector about the systemic risks posed by USDe, drawing parallels to past stablecoin failures like the Terra/Luna collapse.
As MakerDAO continues to navigate these challenges, its future direction will likely have significant implications for the broader DeFi landscape.
The rebranding of Maker to Sky and the introduction of USDS and SKY is a strategic move designed to enhance the protocol’s functionality, accessibility, and resilience, positioning it for long-term growth in the evolving DeFi landscape.
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Liam 'Akiba' Wright
Also known as "Akiba," Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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Dai (DAI) is a cryptocurrency token and operates on the Ethereum platform.
Maker is a Decentralized Autonomous Organization that creates and insures the dai stablecoin on the Ethereum blockchain.
Rune Christensen is Chief Executive Officer and Cofounder of MakerDAO.
