Maker DeFi Lending Protocol Sends to Sky Brands Ahead of USDS Stablecoin Launch
Maker Protocol has officially transitioned to Sky and unveiled an updated stablecoin and native governance token to make decentralized finance (DeFi) accessible to the masses.
As part of its rebranding effort, Maker, the long-standing DeFi lending protocol, has converted the world's largest decentralized stablecoin DAI (DAI) to USDS.
The protocol introduces a modified version of the Maker (MKR) token, the Sky (SKY) native management token, to the wider Sky ecosystem.
MakerDAO co-founder Rune Christensen said the rebranding effort is “a step toward the next evolution of DeFi.”
In an announcement shared with Cointelegraph, Christensen wrote:
“The protocol was developed by […] Focus on simplicity and ease of use. It allows the users to benefit from innovations like Sky Token Rewards (STRs) and Sky Savings Rate (SSR), as long as they are in the eligible jurisdiction.
Like MakerDAO, Skye's protocol remains decentralized, community-driven and non-custodial, Christensen added.
Creator rebrands to heaven. Source: Sky
Improvements in DeFi protocols will help attract more end users from centralized exchanges (CEXs).
For Sky, the rebranding effort aims to increase the reach of the protocol, Christensen told Cointelegraph.
“By upgrading MKR to SKY at 1:24,000, a huge number of people will benefit from the sky ecosystem. The larger SKY offering improves the experience for those looking to purchase more than a small token unit…”
RELATED: White Hat ‘SEAL' Team Defends Against Crypto Hacks Surpasses Over 900 Investigations
Rebrand Maker SubDAOs to Sky Stars
As part of the rebranding effort, Maker SubDAOs will become Sky Stars, remaining independent decentralized projects that connect the Sky ecosystem with their unique business models and autonomy.
The first such sub-DAO to run live is Spark, an open source decentralized liquidity protocol that currently offers users a 6% yield for depositing DAI tokens and allows users to borrow USDS at a 7% interest rate.
Spark.fi Deposit and Borrow page. Source: Spark.fi
Each Sky Star subDAO can issue an autonomous governance token, manage the treasury and community, and implement DAO-specific decisions independently, Christensen told Cointelegraph.
“Sky Stars can innovate, experiment and take more risks, while the Sky Protocol itself focuses solely on maintaining the value and security of the USDS stablecoin. Core Sky Governance protects against risks in the tail, while Stars is focused on doing business in the buckets.”
Tera, Celsius, 3AC: How dangerous is the crypto market contagion? Source: YouTube
RELATED: Bitcoin Poised For Demise As US Money Market Fund Hits $6.2T
Lending is the second largest protocol category in DeFi.
Spark is one of the second largest protocol categories in DeFi, which is Lending.
There are currently 443 DeFi loan protocols with a total value locked (TVL) of more than $33.4 billion, second in liquidity, which is the largest protocol category with a value of more than $44.3 billion, according to Defillama data.
Of the 443 lending protocols, Spark is currently the third largest, with $2.66 billion TVL down 14% last month.
Top 5 DeFi Lending Protocols. Source: Defillama
Aave remains the leading DeFi lending protocol with over $12.1 billion in TVL, down more than 5% last month.
Magazine: $55M DeFi Saver phish, copy2pwn hijacks your clipboard: Crypto Sec
