MakerDAO is changing its name to Sky and unveiling a new stablecoin and governance token

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MakerDAO disclosure its rebranding to Sky along with the new names of its updated tokens, SKY and Sky Dollar (USDS) on August 27.

SKY is a new governance token that is upgraded from Maker’s MKR, while USDS is the latest version of the DAI stablecoin. While DAI and USDS can be exchanged at a 1:1 parity, each MKR token can be exchanged for 24,000 SKY.

Both tokens were PUT on August 22 under the names NewStable and NewGovToken. According to the announcement, the upgrade is optional and users can exchange their SKY and USDS back to MKR and DAI respectively.

Users will be able to provide liquidity with USDS to the new Sky Protocol, similar to how users can lock DAI in the DAI Savings Rate (DSR) program. Thus, a variable rate of accumulation paid in SKY is earned by locking USDS in Sky.

In addition, the announcement also highlighted that Sky Protocol could receive incentives from other decentralized projects, which could end up in rewards through various tokens for USDS stakers.

In particular, USDS will be exchanged for Ethereum (ETH), USD Coin (USDC) and Tether USD (USDT).

The ad also includes a link to increased token rewards, although these will not be available to users in certain jurisdictions such as the US.

Compliance with regulations for mass adoption

The idea of ​​improved versions of MKR and DAI was first officially shared on May 15 blog post by MakerDAO co-founder Rune Christensen.

Christensen pointed out in the text that DAI “straddles two worlds,” one being the decentralized financial ecosystem and the other being the stablecoin’s original purpose of providing utility and value to real people at scale.

Remarkably, these words are “mainly in friction with each other,” Christensen added. The solution proposed in the post is to create a new stablecoin focused on mass adoption that must comply with regulations in the jurisdictions where it is offered.

Furthermore, the new stablecoin USDS will retain the value storage capabilities of DAI. In the meantime, DAI will remain the truly decentralized stablecoins that users can freely use in decentralized applications.

All these steps are part of Sky’s ‘Endgame’, which is a proposal aimed at growing the protocol’s products into the mainstream. These steps include fundamental changes in governance and tokenomics aimed at making Sky self-sustainable.

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