MakerDAO's recent rebranding to Sky has sparked intense debate in the decentralized finance (DeFi) community.
As reported by this medium, the change that MakerDAO, now known as Sky Protocol, recently presented includes the transformation of its flagship decentralized stablecoin, DAI, to a new version called USDS (Sky Dollar).
Although the intention behind these modifications is to improve accessibility and user experience in the decentralized finance ecosystem, the introduction of code in USDS that allows assets to be frozen has raised concerns about the true decentralized nature of the new protocol.
The controversy surrounding the new USDS stablecoin
MakerDAO, which has been a fundamental pillar in building a robust DeFi ecosystem, has seen its reputation shake after the announcement of the new USDS stablecoin. This new token, which replaces DAI, incorporates a controversial feature that allows issuers to freeze assets.
This feature, pointed out by programmer Laurence Day on social media, is common in centralized stablecoins such as USDT and USDC. However, it has been rejected in the DeFi space for going against the principles of decentralization.
MakerDAO co-founder Rune Christensen has confirmed the existence of this freezing feature in the new USDS stablecoin. However, Christensen explains that although this feature is present in the USDS code, it will not be activated upon the stablecoin's launch. In addition to this, Christensen argued that this freezing feature is necessary to ensure compliance with legal systems, especially given that USDS will be backed in part by US Treasury bonds.
Despite their statements, the DeFi community sees all of this as a movement that distances the protocol from its essence, considering that MakerDAO and DAI were designed to offer a decentralized alternative to the traditional system and fiat currencies.
Other users and experts have also expressed their discontent with the new changes introduced to the stablecoin, pointing out this as a contradiction to MakerDAO's original mission. Some have even stated that this change could mark the beginning of irrelevance for the protocol, suggesting that more reliable and truly decentralized alternatives could emerge to fill the void left by DAI.
MakerDAO's rebranding to Sky and its new tokens
The transformation from MakerDAO to Sky not only involves the creation of USDS, but also a name change for its governance token, which is now called SKY, with a conversion rate of 1:24.000 against MKR. How to reported, this change seeks to revitalize the protocol's image and attract a broader and more diverse user base.
Christensen has described this rebranding as part of a broader plan known as “Endgame,” which aims to simplify access to decentralized finance and make the ecosystem more attractive to new users. The strategy includes the creation of a new website and app, Sky.money, which will facilitate interaction with the various features of the protocol.
However, despite these attempts at modernization and accessibility, the name change and introduction of USDS have been met with skepticism in the DeFi community, which is speaking out about the introduction of features that appear to align more with the practices of the traditional financial institutions than with the ideals of decentralization of the blockchain industry.
DAI will remain in circulation
Christensen has mentioned that the switch to USDS is optional and that the old DAI will remain in circulation, suggesting that users will still have the option of using the original stablecoin. However, many believe that this duality could generate confusion and fragmentation in the ecosystem, complicating the user experience instead of simplifying it.
So far, the shift from DAI to USDS and MakerDAO's transformation to Sky Protocol represent a critical moment for the future of decentralized finance and its users. It is hoped that as the protocol evolves, concerns about centralization and censorship in the new stablecoin will be adequately addressed. All this, in order to maintain the commitment of the protocol and the community to a truly decentralized DeFi ecosystem.
