Maker DeFi protocol now renamed to “Sky”

Maker, one of the first and largest DeFi lending protocols on Ethereum, has rebranded to “Sky” following key updates to its decentralized stablecoin system.

This stablecoin, formerly known as DAI, has also been renamed to USDS, and the MKR government token has been changed to SKY.

From MKR to SKY: What’s New?

As announced on Twitter on Tuesday, SKY is an “upgraded version” of MKR that can be obtained by supplying a USDS token to the Sky protocol via Sky.money. 1 DAI can be converted to 1 USDS token and 1 MKR can be converted to 24,000 SKY tokens.

The conversion will make individual SKY tokens much more affordable than MKR tokens, which currently trade for $2,123 each, according to CoinGecko. MKR ranks 41st among all cryptocurrencies by market capitalization.

“Powered by the decentralized Sky protocol, Sky.money will provide seamless and custody-free access to Sky tokens and rewards through an exceptional user experience,” Sky wrote. The Sky protocol will allow “seamless exchange of ETH, USDC and USDT to USDS,” they added.

Assets deposited with Sky will always remain in users’ custody, allowing them to withdraw their assets from the protocol without permission. If the DAO’s decentralized governance allows it, Sky said users could also earn tokens from other decentralized projects through Sky.

The evolution of DeFi

According to MakerDAO co-founder Rune Christensen, the rebrand to Sky is an effort to capture its role in the “next evolution of DeFi.”

“The protocol has been created with a (…) focus on simplicity and ease of use,” he told CoinTelegraph. “It allows users to benefit from innovations such as Sky Token Rewards (STR) and Sky Savings Rate (SSR), as long as they are in an eligible jurisdiction.”

The rebranding also includes the renaming of Maker’s “SubDAOs” to “Sky Stars”: DAOs connected to Maker’s governance that still operate semi-independently, with their own tokens and governance processes. Sky Stars is intended to act as Maker’s riskiest innovation layer, while Sky remains dedicated to securing the USDS stablecoin and protecting against tail risks.

The first and largest Sky Star is Spark, a lending protocol with $2.529 billion in TVL, according to DeFiLlama. This is the third largest lending protocol in all of DeFi, next to Aave and JustLend.

Maker itself has a TVL of $6.44 billion excluding certain subprotocols, making it the fourth largest DeFi protocol.

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