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After the launch of the new SKY tokens on September 18, MakerDAO will introduce a Smart Burn Engine designed to focus its liquidity on the SKY/USDS market.
MakerDAO, a leading decentralized finance (DeFi) protocol with $7 billion of assets under custody, has officially rebranded to “SKY” after two years of dedicated efforts and commitment to transform its ecosystem.
According to the announcement, the rebranding is part of the platform’s “Endgame Plan,” envisioned by its co-founder Rune Christensen, to enhance the growth, accessibility, and resilience of the DeFi sector.
Continuity and Transition
On Tuesday, August 27, the protocol, which focuses on the lending and borrowing of digital assets against its stablecoin DAI, said that “SKY is here”, describing it as the “best and easiest place to get rewarded for saving”.
The rebranding was accompanied by two new digital assets, USDS and SKY which are designed as upgraded versions of both DAI and MKR, the protocol’s governance token used to power activities on MakerDAO.
Despite the introduction of the new stablecoin and governance token, which will officially be released on September 18, both DAI and MKR will still remain available indefinitely.
Endgame introduces NewStable and NewGovToken, the upgraded versions of DAI and MKR.
However, DAI and MKR will remain available. Both tokens are expected to stay unchanged for the foreseeable future, unless governance decides otherwise.
You can continue to hold and use… pic.twitter.com/ucB6s8qsqF
— Sky (@SkyEcosystem) August 22, 2024
MakerDAO has given users the option to either swap their old tokens for the new ones or continue holding their assets. For those who choose to swap, the platform has disclosed that one DAI will be equivalent to one USDS, which is also pegged to the value of the US dollar as a stablecoin.
Additionally, users can exchange their USDC (Circle’s stablecoin) for USDS at the same value.
As for swapping MKR to SKY, MakerDAO stated that users will receive 24,000 SKY for each MKR held. Notably, even after the conversion, users retain the ability to swap the new tokens back to either DAI or MKR at any given time.
The token exchange will be facilitated through an upcoming application known as Sky.money, designed as a decentralized gateway to the Sky Ecosystem. The app will act as the intermediary between users and the Sky Protocol.
MakerDAO to Introduce SKY Burn Engine
After the launch of the new SKY tokens on September 18, MakerDAO will introduce a Smart Burn Engine designed to focus its liquidity on the SKY/USDS market. The Smart Burn Engine will use available liquidity to bolster the market pair.
Additionally, any liquidity the protocol acquires from its surplus operations will be directed to this market, with the aim of creating stability and driving demand for the SKY/USDS pair.
In the future, the platform plans to introduce features such as Sealed Activation and Regular Activation. According to the announcement, these features will allow eligible users who participate in Sky Governance (voting, decision-making, etc.) to receive rewards in the form of USDS and other tokens.
However, it is important to note that these services will not be available in certain countries like the United States due to regulatory uncertainties.
New Features on the Horizon
Following the introduction of Sealed Activation and Regular Activation, the next feature, known as Skylink, will be launched. This tool is designed to provide multi-chain solutions to the SKY ecosystem.
Users will also see the introduction of Spark: the first Sky Star, replacing SubDAOs. Stars are now designed to be smaller, specialized, decentralized ecosystems that exist within the broader Sky Ecosystem and are tied to the Sky Protocol.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
