Maker Protocol renamed to Sky, preparing to launch USDS stablecoin.

In order to enhance the appeal and accessibility of decentralized finance (DeFi), the long-awaited Maker Protocol has officially been renamed to "Sky." This rebranding comes with the release of upgraded stablecoins and governance tokens, aiming to drive the next stage of DeFi development.

Renamed to Sky, Introducing USDS and SKY

As one of the pioneers in decentralized finance lending platforms, the Maker Protocol has renamed its widely used stablecoin Dai DAI to "USDS". Additionally, a new governance token Sky SKY has been introduced to replace the original Maker MKR token.

This is seen as an upgraded version of DAI and MKR, however, the original DAI and MKR will continue to exist and be in use.

Rune Christensen, co-founder of MakerDAO, emphasized that this renaming is not just a superficial change but a strategic adjustment aimed at making DeFi more accessible. "The protocol's design focus is on simplicity and usability," Christensen stated, "Users will benefit from features such as Sky token rewards STR and Sky savings rate SSR, which are available in eligible regions."

Despite the renaming, the Sky protocol still maintains its decentralized, community-governed, and non-custodial nature, continuing the core spirit of MakerDAO.

Increasing Participation Through SKY Token

One of the main goals of this renaming is to increase ecosystem participation. In the transition from MKR to SKY, a conversion ratio of 1:24,000 was adopted, significantly lowering the entry barrier for new users. Christensen explained, "A larger quantity of SKY tokens provides a better experience for users who want to purchase more than just a small fraction of tokens."

By simplifying the usage process, Sky aims to attract more mainstream users away from centralized exchanges (CEX).

SubDAO Evolves into Sky Stars

As part of the renaming plan, Maker's SubDAO will be renamed to "Sky Stars". These independent decentralized projects will continue to operate autonomously, each contributing to the Sky ecosystem with unique business models and specialized governance mechanisms.

The first Sky Star is Spark, an open-source liquidity protocol that offers a 6% yield for users depositing DAI tokens and a 7% interest rate for borrowing USDS. Christensen emphasized that Sky Stars will have the freedom for innovation and risk-taking, allowing them to introduce their own governance tokens, manage funds, and make independent decisions. Meanwhile, the core Sky protocol will focus on maintaining the stability and security of the USDS stablecoin.

"Sky Stars can boldly innovate and push boundaries, while the main protocol ensures the long-term value and stability of USDS. This division of labor promotes innovation while ensuring security," Christensen added.

Continued Prosperity in DeFi Lending

Decentralized finance lending remains a significant force in the ecosystem. According to DefiLlama data, there are currently 443 lending protocols with a total locked value (TVL) exceeding $33.4 billion, making it the second-largest category after decentralized exchanges.

Among these protocols, Spark has become the third-largest lending protocol with a TVL of $2.66 billion, although this number has decreased by 14% in the past month. Aave still leads the DeFi lending sector with a TVL of $12.1 billion, but has also experienced a 5% decline during this period.