MakerDAO officially rebranded to Sky. This transformation is part of the protocol’s ambitious “Endgame” overhaul, aimed at making DeFi more accessible to the masses. 

Alongside the rebrand, MakerDAO announced the deployment of its new stablecoin, USDS, set to launch on September 18, 2024.

From MakerDAO to Sky

MakerDAO has long been recognized as one of the most influential DeFi protocols. Its flagship product, the Dai stablecoin, has been a cornerstone of the decentralized economy. 

With the rebrand, the protocol has introduced USDS as the upgraded version of Dai and Sky (SKY) as the new governance token, replacing the Maker (MKR) token. 

Users can voluntarily upgrade their MKR and DAI tokens to the new SKY and USDS tokens starting September 18. The upgrade process offers a favorable exchange rate, with each MKR token converting into 24,000 SKY tokens, while DAI will convert to USDS on a one-to-one basis.

The decision aims to make the governance token more accessible, particularly to smaller investors who may have been deterred by MKR's high price.

Users can participate in governance decisions and earn rewards with Sky's native governance token, SKY.

New Features and Incentives

Sky's rebranding brings new features and incentives to the DeFi community. Among these is the Sky Savings Rate (SSR), which offers rewards to users who hold USDS, according to a Aug. 27 CoinTelegraph report.

For the first month after launch, Sky will offer double SSR yields to incentivize early adoption. Although the exact annual percentage yield (APY) has not been disclosed, this approach mirrors the success of the DAI Savings Rate, which currently stands at 6%.

In addition, the new Sky Token Rewards (STRs) program will reward users with SKY tokens for holding USDS. These rewards are part of the protocol’s strategy to foster a more engaged and participatory community.

Sky Stars: The Next Phase of MetaDAO

As part of the rebranding, MakerDAO’s metaDAO ecosystem will also undergo a transformation. The subDAOs, previously integral to the Maker ecosystem, will now be known as Sky Stars. These independent decentralized projects will operate within the broader Sky protocol, each with its own business model, token, governance, and treasury.

Sky Stars will focus on specialized operations and will allow users to farm tokens issued by these subDAOs using USDS, according to The Defiant. This decentralized approach aims to create a more diverse and resilient ecosystem, encouraging innovation and collaboration within the Sky community.

The Vision Behind the Rebrand

In a statement, Rune Christensen, one of the protocol’s leading figures, noted the importance of simplicity and ease of use in the new Sky protocol.

“The protocol has been built with a focus on simplicity and ease of use. It allows users to benefit from innovations such as Sky Token Rewards (STRs) and the Sky Savings Rate (SSR), provided they are in an eligible jurisdiction,” Christensen stated in an interview with CoinTelegraph.

The decision to rebrand Dai to USDS was driven by a desire to appeal to a broader audience. Christensen pointed out that the name “Dai” lacked the universal recognition that a stablecoin with “USD” in its name could offer. The rebrand to USDS is expected to resonate more with everyday users, potentially accelerating adoption.