MakerDAO Rebrands to Sky With New Freeze Function as DAI Stablecoin Gets an Upgrade

MakerDAO founder Rune Christensen announced that the DeFi platform will rebrand as Sky. The protocol's Dai (DAI) stablecoin will be upgraded to Sky Dollar (USDS) and its governance token, Maker (MKR), will transition to SKY.

MakerDAO's recent rebranding to Sky has sparked mixed reactions within the decentralized finance (DeFi) community, with some expressing concerns over the centralization implications. However, industry experts maintain that the move was crucial for the platform's growth and sustainability.

On Aug. 27, MakerDAO founder Rune Christensen unveiled the DeFi platform's upcoming rebranding as Sky. The protocol's Dai (DAI) stablecoin will be upgraded to Sky Dollar (USDS), and its governance token, Maker (MKR), will transition to SKY.

One key aspect that has drawn attention is the freeze function that will be integrated with the USDS stablecoin.

“It’s less about centralization and more about being compliant,” Sean Lee, co-founder and chief strategy officer at IDA, told crypto.news in an interview.

Lee, whose company is also launching a Hong Kong-regulated stablecoin, explained that if a stablecoin lacks a freeze function, it could be utilized for illicit activities.

“That becomes a very big deal for anyone that’s hoping for their stablecoin to have the right level of adoption from the user, but at the same time, not be on the radar of regulators,” he added.

According to Lee, the rebranding to Sky and the introduction of the freeze function could pave the way for USDS to achieve “global reach.”

Touching upon the centralization concerns, Less highlighted that the centralization of SKY and USDS will ultimately hinge on the manner in which the tokens are issued, controlled and “work within protocols.”

In May, Christensen hinted at the launch of a new stablecoin for the MakerDAO ecosystem, which is now known as USDS, and a separate stablecoin that will be fully decentralized, called PureDai. The new stablecoin will be pegged to the U.S. dollar but will not be permanently linked to the DeFi lending platform.

Nevertheless, PureDai's launch is not imminent, as Christensen mentioned that the stablecoin “will be available after a few years.”

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