Maker Protocol, one of the longest-standing decentralized finance (DeFi) lending platforms, has officially rebranded to “Sky” and unveiled new names for its stablecoin and governance token.
The protocol’s well-known decentralized stablecoin, Dai (DAI), has been rebranded to USDS, while the native governance token, Maker (MKR), has been upgraded and renamed to Sky (SKY).
Rune Christensen, co-founder of MakerDAO, described the rebranding as a significant step in the “next evolution of DeFi.” According to Christensen, the protocol’s new design emphasizes simplicity and ease of use, allowing users to benefit from innovations such as Sky Token Rewards (STRs) and the Sky Savings Rate (SSR), provided they reside in eligible jurisdictions.
The Sky Protocol will continue to operate as a decentralized, community-governed, and non-custodial system, much like its predecessor, MakerDAO. The rebranding effort is intended to make decentralized finance more accessible to a broader audience, particularly as DeFi seeks to attract users from centralized exchanges (CEXs).
Token Conversion and Accessibility
As part of the transition, MKR tokens can be exchanged for SKY tokens at a ratio of 1:28,000, significantly increasing the supply of SKY tokens and making them more accessible to a larger number of people. This larger supply aims to improve the user experience for those looking to invest in the Sky ecosystem.
Both the old and new tokens will exist in parallel, allowing holders to choose whether to exchange their DAI and MKR tokens for the new USDS and SKY tokens, or to continue using the original tokens. The new tokens will be issued on September 18, 2024, providing users with the option to participate in the updated ecosystem.
Decentralized Entities and New SubDAOs
In addition to the rebranding, Maker’s SubDAOs will be renamed to Sky Stars, maintaining their status as independent decentralized projects that operate within the Sky ecosystem. The first of these Sky Stars is Spark, an open-source liquidity protocol that currently offers a 6% yield on DAI deposits and allows users to borrow USDS at a 7% interest rate.
The rebranding and overhaul of Maker into Sky are part of a broader strategy to expand the DeFi ecosystem to a scale comparable to, or even larger than, major players like Tether. The initiative is a key component of the “Endgame” project, a multi-year plan led by Christensen to remake Maker and enhance its role in the growing DeFi landscape.
The protocol’s growth is expected to be driven by native token rewards for USDS and SKY holders, accessible through the new Sky.money application. However, these reward accruals will be restricted in certain jurisdictions, including the United States and the United Kingdom.
As the rebranding process continues, the full transformation of the platform, including the integration of these new entities and tokens, is expected to unfold over the coming months.
