The developer’s DeFi protocol has now been changed to “Sky”.

Maker, one of the first and largest DeFi lending protocols on Ethereum, has switched to “Sky” following key updates to its decentralized store coin system.

That stablecoin, formerly known as DAI, has also been converted to USDS, and the MKR management token has been converted to SKY.

From MKR to SKY: What's New?

As announced on Twitter on Tuesday, SKY is an “enhanced version” of MKR available through Sky.money offering the USDS token for the Sky protocol. 1 DAI can be converted to 1 USDS token, and 1 MKR can be converted to 24,000 SKY tokens.

The conversion makes SKY tokens, which are currently trading at $2,123 at $2,123, making them more affordable than MKR tokens, according to CoinGecko. MKR ranks 41st among all cryptocurrencies by market capitalization.

Powered by Sky's decentralized protocol, Sky.money offers seamless and protection-free access to Sky's tokens and rewards with an exceptional user experience, he wrote. They added that Skye's protocol “allows seamless conversion of ETH, USDC and USDT to USDS.”

Assets saved by Sky allow them to remove their assets from the protocol without permission. If the DAO's decentralization allows it, Sky says users will be able to access other decentralized projects through Sky.

The evolution of DeFi

According to Rune Christensen, co-founder of MakerDAO, the Sky brand is an effort to capture its role in “the next evolution of DeFi.”

“The protocol was developed by […] Focus on simplicity and ease of use,” said CoinTelegraph. “It will allow consumers to benefit from innovations such as Sky Token Rewards (STRs) and Sky Savings Rate (SSR), as long as they are in the eligible jurisdiction.”

The rebrand involves renaming Maker's “sub-DAOs” to “Skystars” – DAOs connected to Maker's management yet operating semi-independently with their own governance tokens and processes. Sky Stars is intended to act as a maker threat innovation, and Sky itself remains committed to protecting the USDS stablecoin and protecting it from tail risks.

The first and largest is SkyStar Spark – a loan protocol with $2.529 billion in TVL, according to DeFillama. This is the third largest lending protocol in all of DeFi after Aave and JustLend.

Maker itself has a TVL of $6.44 billion, excluding certain subprotocols, making it the 4th largest DeFi protocol.