In a move to boost the use and adoption of the decentralized finance (DeFi) lending platform, MakerDAO is undergoing a major rebrand. The lending protocol, founded by Rune Christensen in 2014, will now be known as “Sky,” a shift aimed at attracting a broader user base.
MakerDAO Reinvents Itself as “Sky”
MakerDAO was one of the earliest applications in the DeFi space, allowing users to trade, lend, and borrow digital assets directly without traditional financial intermediaries.
As Bloomberg reported ReportsThe platform’s success in the early days of cryptocurrencies has earned it a loyal following among the industry’s more experienced participants, called “OGs” or “Original Gangsters.”
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However, like many DeFi projects, MakerDAO has faced challenges in recent years, with Total locked value The total cryptocurrency value (TVL) is expected to peak at $20 billion in 2021 before declining in the wake of the broader crypto market downturn.
In addition, the market value of its shares DAI StablecoinShares of Facebook Inc., a key component of the platform, have fallen from highs of around $10 billion earlier this year.
Christensen acknowledged that while MakerDAO had found a “solid foundation” within the core crypto community, the real challenge was “how to make it more attractive and accessible to the mass market.” This realization led to the decision to rebrand the platform as Sky.
New symbols with rewards
According to Bloomberg, Sky will launch two new tokens on September 18 as part of a rebranding effort. Existing MakerDAO token holders Good evening DAI tokens can be upgraded to new upcoming USDS and SKY tokens, which will provide reward-based incentives for simply holding assets within the Sky ecosystem.
The new Sky.money app, which is also set to launch on September 18, will be the primary platform for accessing these new tokens and their associated rewards.
Christensen confirmed that existing MKR and DAI tokens will remain. Blood circulationallowing users to continue using them if they prefer, with the new tokens primarily aimed at attracting new users to the platform.
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The rebranding initiative is part of MakerDAO’s endgame plan, Roadmap The Convention on Biological Diversity was ratified in 2022 and aims to increase the flexibility of the protocol and drive accelerated growth.
Christensen expressed hope that the Sky rebrand will help DeFi “stop feeling like a cryptocurrency and start feeling like finance is a whole lot better,” emphasizing the focus on highlighting the benefits and ease of use over “the limitations that have historically held back mainstream adoption.”
At the time of writing, MKR is trading at $2,123 following the protocol’s rebranding news, continuing its 10% gain over the past week. This outperforms the market’s largest cryptocurrencies, such as Bitcoin and Ethereum, which have recorded losses over the same period.
Featured image by DALL-E, chart by TradingView.com
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