Maker, a prominent DeFi lending protocol on Ethereum, has recently undergone a rebranding to “Sky” alongside upgrades to its decentralized stablecoin system. Along with this rebranding, the stablecoin DAI has been transformed into USDS, and the governance token MKR has been changed to SKY. This move signifies a new chapter for Maker and its community.
SKY, the upgraded version of MKR, can now be acquired by supplying USDS tokens to the Sky protocol through Sky.money. The conversion rate is 1 DAI to 1 USDS token, and 1 MKR to 24,000 SKY tokens. This new conversion rate makes SKY tokens more accessible to individual users compared to the previous MKR token, which is currently trading at $2,123 per token. MKR holds the 41st spot in terms of market capitalization among all cryptocurrencies.
Sky.money, powered by the decentralized Sky Protocol, offers seamless and non-custodial access to Sky’s tokens and rewards. Users can quickly and securely swap ETH, USDC, and USDT into USDS through the Sky protocol. Importantly, assets deposited with Sky will always remain in the custody of the user, allowing for easy withdrawal without seeking permission.
According to MakerDAO co-founder Rune Christensen, the rebranding to Sky represents a pivotal moment in the evolution of DeFi. The protocol prioritizes simplicity and ease of use, enabling users to leverage innovations like Sky Token Rewards (STRs) and the Sky Savings Rate (SSR) in eligible jurisdictions.
As part of the rebranding, Maker’s “SubDAOs” have been renamed as “Sky Stars.” These entities, connected to Maker governance, function semi-independently with their governance tokens and processes. Sky Stars serve as a platform for riskier innovations within the Maker ecosystem, while Sky itself focuses on safeguarding the USDS stablecoin and mitigating potential risks.
One of the primary Sky Stars is Spark, a lending protocol with a total value locked (TVL) of $2.529 billion, as reported by DeFiLlama. Spark ranks as the third-largest lending protocol in the DeFi space, following closely behind Aave and JustLend. Maker, excluding certain sub-protocols, boasts a TVL of $6.44 billion, cementing its position as the fourth-largest DeFi protocol.
The rebranding of Maker to Sky marks a significant milestone in the DeFi landscape. The introduction of the Sky Protocol, USDS stablecoin, and SKY token paves the way for a new era of decentralized finance, emphasizing accessibility, security, and innovation. Sky Stars like Spark showcase the platform’s commitment to pushing boundaries and exploring new opportunities within the DeFi space.
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