MakerDAO Reinvents Itself as ‘Sky’ with Major Overhaul
MakerDAO, one of the most influential and longest-standing players in DeFi, is reinventing itself to adapt to the evolving ecosystem. With over $7 billion in assets under management, MakerDAO recently announced a major overhaul, including a name change and the introduction of new tokens. Now known as ‘Sky,’ the protocol aims to push the boundaries of DeFi by launching a new stablecoin, USDS, and a governance token, SKY.
Sky is here.
The best and easiest place to get rewarded for saving without giving up control.
Discover the upgraded tokens, new features, and boosted Sky Token Rewards for early sign-ups. Follow this thread for the latest news and updates about SkyLaunch. pic.twitter.com/Qc25KRPzR8
— Sky (@SkyEcosystem) August 27, 2024
The New Tokens: USDS and SKY
Starting September 18th, Sky will introduce two new tokens into its ecosystem: the USDS stablecoin and the SKY governance token. These new tokens will coexist with the current versions of DAI and MKR, the protocol’s flagship tokens. Users will have the option to convert their DAI to USDS at a 1:1 ratio and each MKR can be exchanged for 24,000 SKY. It’s important to note that this conversion is optional, giving token holders the choice to hold onto their old tokens or adopt the new ones.
Ambitious Project: The ‘Endgame’
This transformation is part of a larger overhaul project called ‘Endgame,’ led by Rune Christensen, co-founder of MakerDAO. The main goal of this initiative is to enable Sky to grow on a massive scale, rivaling giants like Tether, whose USDT stablecoin currently dominates the market with $116 billion in circulation. Christensen first presented this vision in May 2023, outlining plans for the introduction of new versions of the protocol’s tokens in a governance forum. He believes that radical changes are necessary, both in terms of structure and technology, for DeFi to reach a size comparable to centralized players.
Sky.money: A New User Interface
A key element of this transformation is the creation of Sky.money, a new DeFi application that will serve as the gateway to interact with the protocol. This application is designed to offer an enhanced user experience while allowing holders of the new tokens to benefit from native rewards. However, due to regulatory restrictions, certain jurisdictions, including the United States and the United Kingdom, will not have access to this reward function.
Reorganization into Independent Entities: The Stars
In addition to these changes, the protocol will undergo further decentralization by splitting into multiple independent entities called ‘Stars.’ These entities, formerly known as SubDAOs, will each have their own specific tokens and functions. The first of these Stars will be Spark, a lending platform that will be built on the Maker/Sky foundation.
While these transformations are ambitious, they will not be deployed immediately. As Christensen pointed out, the transformation process will take ‘a few months’ as they test and optimize the complete experience.
