DeFi Community Reactions to MakerDAO Rebranding as Sky

On August 27, MakerDAO, a leading platform in decentralized finance (DeFi), announced a rebranding. The platform now calls itself “Sky,” aiming to make the protocol more scalable and accessible. Along with the new name, they will launch two new tokens: USDS, an upgraded version of the DAI stablecoin, and SKY, a new governance token that replaces MKR. 

New Tokens Under Sky 

The rebranding introduces two key tokens: 

1. USDS: An upgraded version of DAI, designed to be more resilient and scalable. It maintains a 1:1 conversion rate with DAI. 
2. SKY: A new governance token that replaces MKR. It offers access to the Sky Savings Rate (SSR) and Sky Token Rewards (STRs), which incentivize user participation. 

Users can decide whether to switch to these new tokens. Each MKR token can be exchanged for 24,000 SKY tokens, while DAI can be swapped for USDS at a 1:1 ratio. 

The Endgame Plan 

Sky’s rebranding forms part of a broader strategy called the “Endgame Plan.” This plan addresses key challenges in DeFi, such as scalability and regulatory compliance. Rune Christensen, co-founder of MakerDAO, developed the plan. It includes “Sky Stars,” independent decentralized projects that encourage innovation within the Sky ecosystem. 

The plan also introduces Sky.money, a non-custodial platform aimed at simplifying access to the Sky protocol. However, some features like SSR and STRs will have restricted availability based on jurisdiction, ensuring Sky’s compliance with global regulations. 

Community Reactions 

The DeFi community’s response to the rebranding has been mixed. Some view the change as a positive step towards meeting market demands. Others are concerned that it moves away from the decentralized principles that defined MakerDAO. Critics argue that the new USDS stablecoin, despite its improvements, might compromise the decentralization that DAI once represented. 

There are also concerns about the potential centralization trend this rebranding might spark within the DeFi space. Some believe that the introduction of USDS and SKY could influence the sector’s long-term decentralization goals. 

According to DefiLlama, Maker is the fourth largest DeFi protocol with a total value locked (TVL) of $6.28 billion. DAI, the third-largest stablecoin, has a market capitalization of $5.25 billion, trailing behind Tether’s USDT and Circle’s USDC.