MakerDAO Rebrands to SKY Introducing New Stablecoin and Governance Token

As a seasoned analyst with years of experience in the blockchain industry, I find the rebranding of MakerDAO to SKY intriguing. The decision to rebrand after two years of dedication is a testament to the platform’s commitment to innovation and growth within the DeFi sector. The introduction of USDS and SKY as upgraded versions of DAI and MKR, respectively, seems like a strategic move to enhance user experience and engagement.


After two years of focused work and dedication, the well-known decentralized finance (DeFi) protocol MakerDAO, currently managing over $7 billion in assets, has decided to change its name to “SKY“. This rebranding reflects their commitment to revamping their ecosystem.

As stated in the recent announcement, the rebranding forms a crucial aspect of the platform’s “Endgame Strategy,” a vision conceived by its co-founder Rune Christensen, aimed at bolstering expansion, improving usability, and strengthening the robustness of the Decentralized Finance (DeFi) sector.

Continuity and Transition

On Tuesday, August 27th, I learned that the digital asset lending and borrowing protocol, centered around their stablecoin DAI, announced an exciting development. They referred to this new feature as “SKY“, positioning it as the most advantageous and effortless platform for earning rewards on savings.

The rebranding was accompanied by two new digital assets, USDS and SKY which are designed as upgraded versions of both DAI and MKR, the protocol’s governance token used to power activities on MakerDAO.

Regardless of the upcoming launch of the new stablecoin and governance token scheduled for September 18, it’s important to note that DAI and MKR will continue to exist long-term.

Endgame introduces NewStable and NewGovToken, the upgraded versions of DAI and MKR.

For now, it’s important to note that DAI and MKR will continue to be accessible. These tokens are anticipated to keep their current form in the near term, but they could change if governance chooses to do so.

You can continue to hold and use…

— Sky (@SkyEcosystem) August 22, 2024

MakerDAO offers users two choices: they can exchange their existing tokens for new ones, or keep their assets as they are. Users who opt for the swap should note that one DAI will be equal to one USDS, which is another stablecoin tied to the value of the U.S. dollar.

Additionally, users can exchange their USDC (Circle’s stablecoin) for USDS at the same value.

From my perspective as an analyst, when it comes to exchanging MKR for SKY, MakerDAO has communicated that each MKR held will be swapped for 24,000 SKY. It’s worth noting that this exchange doesn’t limit the user’s ability to later swap the newly acquired tokens back into DAI or MKR whenever they choose.

The token exchange will be facilitated through an upcoming application known as Sky.money, designed as a decentralized gateway to the Sky Ecosystem. The app will act as the intermediary between users and the Sky Protocol.

MakerDAO to Introduce SKY Burn Engine

Following the release of the fresh SKY tokens on September 18, MakerDAO plans to implement a Smart Burn Mechanism aimed at concentrating its liquidity within the SKY/USD market. This Smart Burn Mechanism will utilize existing liquidity resources to strengthen the market pair.

Furthermore, any excess earnings generated by the protocol’s operations will be channeled into the SKY/USDS market, with the goal of fostering stability and boosting demand for this specific currency pair.

Moving forward, the platform intends to roll out functionalities like Sealed Activation and Regular Activation. As per the recent announcement, these features are designed to empower eligible users involved in Sky Governance (including voting and decision-making) by granting them rewards in USDS and various other tokens.

Keep in mind that some countries, such as the U.S., may not offer these services because of regulatory doubts or complications.

New Features on the Horizon

After introducing Sealed Activation and Regular Activation, the upcoming innovation, called Skylink, will be unveiled next. This device has been developed specifically to offer multi-chain resolutions within the SKY system.

As a crypto investor, I’m excited to welcome the arrival of Spark – the pioneering Sky Star. This newcomer is set to replace SubDAOs, bringing a fresh perspective to the world of decentralized finance. Stars, in this context, represent smaller, focused, self-governing communities that thrive within the expansive Sky Ecosystem and adhere to the Sky Protocol. These mini-ecosystems are designed to offer an enriched and specialized experience within the broader Sky network.

Read More

Sorry. No data so far.

2024-08-27 19:10