Key Takeaways
- MakerDAO rebrands as Sky, introducing USDS stablecoin and SKY governance token as upgrades to DAI and MKR.
- Sky Protocol gives liquidity provision for USDS, with variable price rewards paid in SKY.
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MakerDAO revealed its rebranding to Sky together with the brand new names of its upgraded tokens, SKY and Sky Greenback (USDS) on Aug. 27.
SKY is a brand new governance token being upgraded from Maker’s MKR, whereas USDS is the most recent model of the stablecoin DAI. Whereas DAI and USDS will be swapped on a 1:1 parity, every MKR token will be exchanged for twenty-four,000 SKY.
Each tokens had been introduced on Aug. 22 beneath the names NewStable and NewGovToken. In line with the announcement, the improve is non-obligatory, and customers can change their SKY and USDS again to MKR and DAI, respectively.
Customers will have the ability to provide liquidity with USDS to the brand new Sky Protocol, in the same approach as customers presently can lock DAI into the DAI Financial savings Charge (DSR) program. Thus, a variable price of accrual paid in SKY is earned by locking USDS into Sky.
Moreover, the announcement additionally highlighted that Sky Protocol would possibly get incentives from different decentralized initiatives, which might find yourself in rewards by way of totally different tokens to USDS stakers.
Notably, USDS can be swappable for Ethereum (ETH), USD Coin (USDC), and Tether USD (USDT).
The announcement additionally consists of a link to boosted token rewards, though they gained’t be accessible for customers in sure jurisdictions, such because the US.
Regulatory compliance for mass adoption
The thought of upgraded variations of MKR and DAI was first formally shared in a Could 15 blog post by MakerDAO co-founder Rune Christensen.
Christensen highlighted within the textual content that DAI is “straddling two worlds,” one being represented by the decentralized finance ecosystem and the opposite being the stablecoin’s authentic objective of delivering utility and worth to actual individuals at scale.
Notably, these phrases are “essentially in friction with one another,” Christensen added. The answer proposed within the publish is to create a brand new stablecoin targeted on mass adoption, which must be regulatory compliant within the jurisdictions the place it’s supplied.
Furthermore, the brand new USDS stablecoin will retain the value-accruing capabilities of DAI. In the meantime, DAI will stay the really decentralized stablecoin that customers would possibly use freely in decentralized functions.
All of those steps are a part of Sky’s “Endgame,” which is a proposal aimed toward boosting the protocol’s merchandise into the mainstream. These steps embrace basic modifications in governance and tokenomics, aimed toward making Sky self-sustainable.
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