MakerDAO Rebrands to Sky, Introducing New Tokens and Decentralization Strategy

MakerDAO Rebrands as Sky: A New Era for DeFi Lending

In a significant shift within the decentralized finance (DeFi) landscape, MakerDAO, one of the oldest and most prominent DeFi lending platforms, has announced a comprehensive rebranding to “Sky.” This transformation was revealed in a press release on Tuesday, marking a pivotal moment in the protocol’s evolution.

The rebranding comes alongside the introduction of new tokens: the USDS stablecoin and the SKY governance token, replacing the existing DAI and MKR tokens. With approximately $7 billion in assets, MakerDAO is positioning itself for expansive growth in the DeFi sector.

Importantly, DAI and MKR will remain in circulation, unchanged, allowing for a seamless transition. Token holders will have the option to convert their DAI tokens on a 1:1 basis for the new USDS stablecoin, while MKR holders can exchange each MKR token for 28,000 SKY tokens. The launch of these new tokens is scheduled for September 18, providing users with the flexibility to either retain their existing tokens or opt for the new versions.

Rune Christensen, co-founder of MakerDAO, emphasized the motivation behind this transformation, stating, “The fundamental factor was how to grow DeFi to gigantic scale, something as big as Tether or even bigger.” Tether currently dominates the market with a staggering $116 billion in USDT stablecoin issuance.

Christensen has been at the forefront of MakerDAO’s extensive multi-year revamp, known as the “Endgame.” This initiative first outlined the introduction of upgraded versions of the platform’s tokens back in May 2023 through a governance forum post, setting the stage for the current developments.

To achieve its ambitious growth objectives, the protocol is focusing on providing native token rewards for holders of USDS and SKY through a newly developed user interface, the Sky.money application. However, it’s important to note that the accrual of rewards will be limited in certain jurisdictions, including the United States and the United Kingdom.

In addition to the new token structures, the overhaul includes a strategic move to decentralize the platform by creating smaller, independent entities, previously referred to as SubDAOs. These entities will now be branded as “Stars” as part of the rebranding initiative.

• The first of these independent entities is called Spark, a lending platform that will operate on top of the Maker/Sky infrastructure.

Christensen mentioned that the complete transformation and user experience will not be fully realized for “a few months later” as the new systems undergo testing and enhancements. This measured approach aims to ensure a smooth transition for all users involved.