In a transformative leap forward for decentralized finance (DeFi), MakerDAO has officially rebranded as Sky, marking the beginning of a bold new chapter in the evolution of blockchain-based financial systems. This strategic shift is the centerpiece of the protocol’s ambitious "Endgame" plan, designed to simplify access, enhance user engagement, and scale DeFi adoption across global markets. With the launch of its next-generation stablecoin USDS and the introduction of the SKY governance token, Sky is redefining what it means to participate in decentralized finance.
The Evolution from MakerDAO to Sky
Since its inception, MakerDAO has stood at the forefront of innovation in DeFi. Its flagship stablecoin, Dai, became one of the first decentralized, over-collateralized digital assets pegged to the US dollar, laying the foundation for trustless lending, borrowing, and savings in the crypto ecosystem.
Now, under the new identity of Sky, the protocol is undergoing a comprehensive transformation that extends far beyond a name change. The rebrand reflects a deeper mission: to make DeFi more intuitive, inclusive, and scalable for everyday users. By simplifying branding and user experience, Sky aims to bridge the gap between early adopters and mainstream audiences who may find traditional crypto terminology intimidating.
👉 Discover how Sky is making decentralized finance more accessible than ever.
Introducing USDS: The Next-Generation Stablecoin
At the heart of Sky’s transformation is USDS, a new dollar-pegged stablecoin designed to replace Dai. Unlike rebranded tokens that alter functionality, USDS maintains the same 1:1 parity with the US dollar and inherits Dai’s proven stability mechanisms. However, it introduces enhanced branding clarity—its name directly communicates its purpose, making it instantly recognizable to newcomers.
Existing Dai holders will see their balances automatically converted to USDS on a one-to-one basis during the migration process, ensuring a seamless transition with no loss of value. This simplicity is central to Sky’s vision: removing friction so users can focus on using DeFi, not understanding jargon.
Alongside USDS comes the new SKY governance token, which replaces the former MKR token. Starting September 18, 2024, MKR holders can exchange each MKR for 24,000 SKY tokens, a move intended to broaden ownership and lower entry barriers for community participation.
This token distribution model promotes decentralization by enabling smaller investors to hold meaningful voting power, fostering a more democratic and resilient governance structure.
Empowering Users with Sky Savings Rate and Token Rewards
To incentivize adoption and long-term engagement, Sky introduces two key programs: the Sky Savings Rate (SSR) and Sky Token Rewards (STRs).
The Sky Savings Rate allows users who hold USDS to earn passive yield—similar to a high-yield savings account. While exact APY figures have not yet been disclosed, early participants will enjoy double SSR yields for a limited time after launch. This promotional boost mirrors the success of the previous Dai Savings Rate, which offered up to 6% APY and played a crucial role in attracting users to the ecosystem.
Complementing SSR is the Sky Token Rewards (STRs) program, where users earn SKY tokens simply by holding USDS in supported wallets or protocols. This dual-reward mechanism not only encourages retention but also aligns user incentives with the long-term growth of the network.
Together, these features create a powerful flywheel: users earn rewards → increase their holdings → gain more influence through governance → contribute to protocol improvements → drive further adoption.
Sky Stars: Decentralizing Innovation Through SubDAOs
One of the most innovative aspects of Sky’s new architecture is the evolution of its metaDAO framework into Sky Stars—a network of independent subDAOs operating within the broader Sky ecosystem.
Each Sky Star functions as a semi-autonomous entity with its own business model, treasury, and governance rules. These subDAOs are designed to experiment with novel financial products, expand into niche markets, and drive innovation without compromising the security or coherence of the main protocol.
Users can engage with individual Sky Stars by staking or "farming" USDS to earn unique tokens issued by each subDAO. This layered approach enables diversified income streams while promoting healthy competition and collaboration across projects.
More importantly, Sky Stars embody Sky’s commitment to true decentralization—not just in technology, but in decision-making and economic opportunity.
👉 See how decentralized subDAOs are shaping the future of finance.
Why Simplicity Matters: The Strategy Behind the Rebrand
Rune Christensen, founding figure of the original MakerDAO project, emphasized that clarity and usability were driving forces behind the rebrand. The shift from “Dai” to “USDS” was intentional: names matter when trying to reach billions of potential users unfamiliar with blockchain slang.
“USDS” clearly signals its value proposition—a digital dollar stablecoin—making it easier for people outside crypto circles to understand and trust. This focus on user-centric design reflects Sky’s broader goal: democratizing access to financial tools that were once reserved for institutions or tech-savvy individuals.
By stripping away complexity and focusing on intuitive experiences, Sky lowers the learning curve for new entrants and accelerates mainstream DeFi adoption.
Frequently Asked Questions (FAQ)
Q: What happens to my Dai after the rebrand?
A: All Dai will be automatically converted to USDS at a 1:1 ratio. You don’t need to take any action—the transition is seamless and preserves your balance.
Q: How do I exchange MKR for SKY?
A: Starting September 18, 2024, MKR holders can swap their tokens via the official Sky migration portal. Each MKR will be exchanged for 24,000 SKY tokens.
Q: Is USDS backed the same way as Dai?
A: Yes. USDS inherits Dai’s robust collateralization model, supported by a diversified basket of crypto assets, real-world assets (RWAs), and other secure instruments.
Q: Can I still earn yield with USDS?
A: Absolutely. Through the Sky Savings Rate (SSR) and Sky Token Rewards (STRs), you can earn both interest and SKY tokens by holding USDS.
Q: Are Sky Stars safe to participate in?
A: While each Sky Star operates independently, they are built on audited smart contracts and governed by their communities. As with any DeFi activity, users should conduct due diligence before engaging.
Q: Will this affect transaction fees or network performance?
A: No. The rebrand does not impact underlying infrastructure. Transactions will continue to operate efficiently across supported blockchains like Ethereum and layer-2 networks.
A New Chapter in Decentralized Finance
Sky’s rebranding is not merely cosmetic—it represents a fundamental recalibration of how DeFi can serve people worldwide. With USDS, SKY, SSR, STRs, and Sky Stars, the protocol delivers a holistic ecosystem that balances innovation with accessibility.
As decentralized finance continues to mature, projects like Sky are proving that usability, inclusivity, and strong incentives can coexist—paving the way for mass adoption.
Whether you're a long-time DeFi user or exploring digital finance for the first time, now is an exciting moment to get involved.
👉 Start exploring decentralized finance with tools built for everyone.