Decentralized finance (DeFi) protocol MakerDAO unveils its rebranding to Sky. The policy change toward its new stablecoin is sparking debate in the crypto community, but why?
MakerDAO Changes Name to Sky
MakerDAO, the protocol behind the DAI stablecoin, recently announced that it is changing its name to “ Sky “. But this name change is only the facade of a deep restructuring of the protocol..
In fact, the proposal called “ Endgame “, with the ambition of attracting ” 100 billion » of dollars of capitalization to the stablecoin of the project, revises among others the protocol's policy on freezing assets for malicious actors.
This feature, already present on USDT and USDC, the 2 most popular stablecoins in the crypto sphere, will be implemented in the code of Sky's new stablecoin: the USDS.
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Although this step is mandatory to comply with anti-money laundering (AML) regulations and to claim mass adoption, it creates debate within the crypto community..
Indeed, DAI has long been recognized as the most decentralized stablecoin on the market. So while this new paradigm for Sky may attract an influx of capital from institutions, DAI’s original users may decide to turn their backs on it.
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However, decentralization advocates will have another alternative. The protocol is also launching another version of its stablecoin, called “PureDAI” for which asset freezing will not be possible.. Although liquidity on this asset may be reduced, the initiative deserves to be highlighted.
In parallel with these events, the protocol’s governance token, still called MKR to this day, has recorded a loss of 38% over the last 30 days. Its price is currently at $1,780.
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Source: MakerDAO Official Forum
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Passionate about the blockchain ecosystem, I like to deepen my knowledge and share my discoveries. In a perpetual quest to learn more about cryptos, I recently joined the Cryptoast Research team where I provide a weekly fundamental analysis.
Theo Zananiri
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