MakerDAO has recently rebranded to Sky and announced the names of its upcoming upgraded tokens, USDS and SKY, set for release on September 18. This rebranding is part of MakerDAO’s “Endgame Plan,” a vision laid out by co-founder Rune Christensen to transform the structure of the DAO and enhance DeFi’s growth, accessibility, and resilience. The introduction of new tokens—USDS, an upgraded version of the DAI stablecoin, and SKY, the new governance token replacing MKR—aims to simplify the user experience in DeFi and make the protocol more accessible to a wider audience.
The rebranding also brings forth the concept of “Sky Stars,” independent decentralized projects within the Sky ecosystem, beginning with the Spark protocol. These projects are designed to foster rapid innovation while maintaining autonomy within the broader Sky framework. USDS will function as an upgradable version of DAI, allowing users to transition their existing holdings into the new stablecoin. MKR holders will have the option to upgrade their tokens to SKY, with each MKR converting into 24,000 SKY tokens, providing access to the Sky Savings Rate (SSR) and Sky Token Rewards (STRs) to reward user participation in the protocol.
With the rebranding comes the launch of a new platform called Sky.money, facilitating non-custodial access to the Sky protocol. Some features, such as the SSR and STRs, will be restricted in certain jurisdictions due to regulatory considerations. However, the transition from MakerDAO to Sky is a foundational shift aimed at scaling DeFi’s benefits by creating a more robust and user-friendly decentralized financial infrastructure. This evolution represents the next phase of DeFi development, leveraging the success and security of the Maker protocol.
Amid growing tensions with Aave in 2024, MakerDAO has faced scrutiny for backing a significant portion of DAI with Ethena Labs’ synthetic dollar, USDe, which some in the DeFi community view as risky. Aave has expressed concerns over MakerDAO’s governance actions and proposed to cease supporting DAI as collateral on its platform, citing potential contagion risks associated with MakerDAO’s new direction. The broader unease within the DeFi sector about the systemic risks posed by USDe draws parallels to past stablecoin failures, such as the Terra/Luna collapse.
As MakerDAO navigates these challenges, its future direction will have significant implications for the broader DeFi landscape. The rebranding to Sky, the introduction of USDS and SKY, and the focus on enhanced functionality, accessibility, and resilience through the Sky protocol, position MakerDAO for long-term growth in the evolving DeFi landscape. The transition to Sky represents a strategic move to scale DeFi’s unique benefits and create a more user-friendly decentralized financial infrastructure.
