Recently, Maker, a prominent DeFi lending protocol on Ethereum, made significant changes by rebranding itself to “Sky.” This rebranding also involved renaming its stablecoin from DAI to USDS, and its governance token from MKR to SKY. One of the key upgrades introduced was the ability to convert 1 DAI to 1 USDS token and 1 MKR to 24,000 SKY tokens. This conversion made SKY tokens more accessible compared to the expensive MKR tokens, which are currently trading at $2,123 each.
The Sky protocol, introduced through Sky.money, offers a seamless and non-custodial platform for users to access Sky’s tokens and rewards. Users can easily swap ETH, USDC, and USDT into USDS through the protocol. Importantly, assets deposited with Sky always remain in user custody, allowing them to withdraw their assets without needing permission. Furthermore, the protocol may enable users to earn tokens from other decentralized projects through Sky, depending on the DAO’s decentralized governance decisions.
According to MakerDAO co-founder, Rune Christensen, the rebranding to Sky signifies the protocol’s transition to the “next evolution of DeFi.” He emphasized the protocol’s focus on simplicity and ease of use, highlighting features such as Sky Token Rewards (STRs) and the Sky Savings Rate (SSR) for eligible jurisdictions. The rebrand also involved renaming Maker’s “SubDAOs” to “Sky Stars,” which are DAOs connected to Maker governance but operate semi-independently with their own tokens and processes. Sky Stars serve as Maker’s experimental layer for riskier innovations while the core Sky protocol focuses on securing the USDS stablecoin and mitigating tail risks.
One of the notable Sky Stars is Spark, a lending protocol with $2.529 billion in Total Value Locked (TVL) according to DeFiLlama. This makes Spark the third-largest lending protocol in DeFi, following Aave and JustLend. Notably, Maker itself boasts a TVL of $6.44 billion, excluding certain sub-protocols, positioning it as the fourth largest DeFi protocol in the ecosystem.
The transformation of Maker to Sky signifies a strategic shift towards enhancing accessibility, functionality, and innovation within the DeFi space. With the introduction of the Sky protocol and Sky Stars, users can expect a more user-friendly experience and a diverse range of opportunities for engaging with decentralized finance. The rebrand reflects a commitment to advancing DeFi technology and expanding the possibilities for decentralized financial services in the future.