In an overhaul of its identity and offerings, MakerDAO, the pioneering decentralised finance (DeFi) platform, is undergoing a rebranding to Sky, introducing a new stablecoin, USDS, and a governance token, SKY. This strategic pivot marks not just a change in nomenclature but signals Maker’s ambition to redefine the landscape of DeFi.
Rebranding and New Tokens
Under its new name, Sky, the protocol is preparing to launch two major tokens: the USDS stablecoin and the SKY governance token. These will replace the existing DAI and MKR tokens, respectively. Users will have the option to exchange their MKR tokens for SKY at a rate of 1:24,000, while DAI holders can swap their tokens 1:1 for USDS. This exchange will be voluntary, with the old tokens remaining in circulation as legacy assets within the Sky ecosystem.
Rune Christensen, co-founder of MakerDAO, articulated the reasoning behind the rebrand, emphasising simplicity and user-friendliness. “Sky represents the complete transformation of Maker, comprising all the knowledge the organization has reaped over the years,” said Christensen. The rebrand, according to him, is designed to make DeFi more approachable, particularly for those deterred by the complexity of the existing system.
The Endgame Overhaul
The rebranding is part of a larger strategic initiative known as the “Endgame,” a multi-year project aimed at overhauling the protocol. The Endgame’s primary goal is to scale DeFi to a “gigantic size,” potentially rivaling or even surpassing major players like Tether, which currently dominates the stablecoin market with a $116 billion market cap.
A critical component of this overhaul is the introduction of native token rewards. Users holding the USDS stablecoin will earn SKY governance token rewards, which can be accessed via the newly launched Sky.money application. However, these rewards will be unavailable in certain jurisdictions, including the United States and the United Kingdom, due to regulatory constraints.
Decentralisation and the Role of Sky Stars
Sky’s commitment to decentralisation remains unwavering. The protocol will continue to be governed by its community, with no central authority exerting control. This decentralised approach is further reinforced by the rebranding of Maker’s SubDAOs—independent protocol units that facilitate innovation within the ecosystem—as “Sky Stars.”
Sky Stars are envisioned as autonomous entities with their own governance, tokens, and business models. The first of these, Spark, is a DeFi lending protocol offering users a 6% yield for DAI deposits and enabling borrowing in USDS. The autonomy of these Stars is a deliberate design choice, allowing them to take risks and innovate while the core Sky Protocol remains focused on maintaining the stability and value of the USDS stablecoin.
A Legacy of Innovation Amidst Tragedy
Sky’s evolution is a testament to MakerDAO’s legacy of innovation. The protocol has consistently been at the forefront of DeFi, pioneering new financial instruments and governance models. However, this evolution has also been marked by tragedy. The rebrand comes after the unexplained death of MakerDAO’s former founder, Nikolai Mushegian almost 2 years ago, whose contributions to the project were instrumental in its early success.
Accessibility and UX
The rebrand addresses a critical issue that has long plagued DeFi—accessibility. By offering a more intuitive interface and a redenomination of its governance token, Sky seeks to lower the barrier to entry for smaller investors.
The name change can be seen as a strategic repositioning that could reshape the future of DeFi. As the protocol moves forward, it will be guided by the same principles of decentralisation and community governance that have been its hallmark since its inception. Whether Sky will achieve its ambitious goals remains to be seen, but one thing is clear: the DeFi world is set for a significant shake-up.