As part of this rebranding, Maker, known as the oldest DeFi lending protocol, has changed the name of its decentralized stablecoin from Dai (DAI) to USDS. Additionally, the protocol has introduced a new governance token, Sky (SKY), which will serve as the upgraded token for the broader Sky ecosystem.

MakerDAO Co-Founder Discusses Rebranding

MakerDAO co-founder Rune Christensen described the rebranding as the start of “the next evolution of DeFi.” In a statement about the rebranding, he emphasized that the new protocol focuses on simplicity and ease of use, offering features such as Sky Token Rewards (STRs) and Sky Savings Rate (SSR) for eligible users. Like its predecessor, Sky Protocol remains decentralized, community-driven, and non-custodial.

The rebranding effort also aims to attract more mainstream users from centralized exchanges (CEXs) by making the protocol more accessible. According to Christensen, the transition from MKR to SKY, with a conversion rate of 1:24,000, increases accessibility to the Sky ecosystem and allows more users to interact with the token beyond fractional ownership.

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Maker SubDAOs Rebranded as Sky Stars

As part of the rebranding, Maker’s SubDAOs will now be called Sky Stars. These Sky Stars will function as independent, decentralized projects within the Sky ecosystem, each with their own unique business model and operational autonomy. The first Sky Star to launch will be Spark, an open-source liquidity protocol that currently offers users a 6% yield on DAI deposits and allows borrowing USDS at a 7% interest rate.

Christensen explained that each Sky Star will have the freedom to issue its own governance token, manage its treasury and community, and make independent decisions. This structure will allow Sky Stars to innovate and take on more risk, while the main Sky Protocol focuses on preserving the value and security of the USDS stablecoin. Core Sky Governance will be responsible for mitigating risks, while Sky Stars will handle more specialized business operations.

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MakerDAO pointed out that the redenomination seeks to enable more users to possess large quantities of the new governance token, NGT, therefore democratizing the decision-making process and enabling greater involvement in the governance of the platform.

MakerDAO will be launching a new stablecoin, NewStable (NST), pegged 1:1 with Dai alongside the NGT introduction. The current Dai and MKR tokens will stay operational, so users will be able to pick between the original tokens and their replacement.

MakerDAO said, “Both tokens are expected to stay unchanged for the foreseeable future unless governance decides otherwise.”

Emphasizing user choice, the plan notes that upgrading to NewStable and NewGovToken is optional. Users switching to the new tokens can go back to the original Dai and MKR, therefore maintaining the adaptability of the MakerDAO ecosystem.

MakerDAO also mentioned that eventually their ecosystem would “eventually explore ways to differentiate between Dai and NewStable.” The DAO claims Dai might keep its emphasis on crypto-native use cases in this configuration, and NewStable could aim for mass adoption.

Released by a distributed entity, Dai is the biggest U.S. dollar-pegged stablecoin available. With a market valuation of $5.2 billion, it also ranks as the as the third-largest stablecoin overall after Tether USD and Circle’s USDC.

With an expected quantity of one million tokens and a market capitalization of more than $2 billion, the Maker token rules the project.

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MakerDAO authorized an executive vote lowering the WBTC debt limit to zero and forbiting any new loans guaranteed by WBTC collateral. Furthermore, set to 0% was WBTC’s loan-to-value (LTV) ratio. MakerDAO notably enables users to mint the DAI stablecoin as an overdollaterized loan.

Since the liquidation level stays the same, these changes have no effect on current loans guaranteed by WBTC.

Following Bitgo, the developer and guardian of WBTC, who revealed a collaboration with BiT Global (connected to Tron founder Justin Sun) to manage WBTC custody, moving custody from the U.S. to other jurisdictions, including Hong Kong and Singapore, the risk parameter modification affecting WBTC came after.

Inspired by Sun’s dubious reputation and the possible centralization of control, this development caused security issues among MakerDAO members, which led to the modifications. BitGo CEO Mike Belshe underlined in defense the company’s dedication to security as well as the legal control of BitGo and BiT Global.

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Blockchain security company Scam Sniffer said earlier in the day that a crypto investor was duped into signing a harmful permission phishing signature. This meant the loss of 2.56 million PT Ethena tokens, valued at $2.4 million, and 3,656 MKR tokens, valued at $8.7 million.

Examining the victim’s address on the Arkham Intelligence platform, it turned out that it was connected to a MakerDAO governance delegate. Selected by their community, these delegates reflect MKR holders in voting procedures.

Although all MKR holders are involved in governance, many choose to give these representatives their voting powers. This practically gives them major control over the operations and policies of the protocol.

“This is a real big spender. Three permit offline authorization signatures were stolen by a phishing website, resulting in a loss of approximately $11 million,” Yu Xian, creator of blockchain security firm SlowMist, stated.

Impact on MKR Token Price

According to Lookonchain, the blockchain analysis tool, the thief had turned the pilfers into Ethereum following their theft. Resulting from this action, MKR’s price dropped 7% to $2,219. As of press time, the token has somewhat rebounded to $2,374.

Etherscan has assigned the address of the exploiter to be a phishing wallet. It has around $760,000 in different digital assets.

This event also highlights the continuous threat of phishing attempts in the domain of digital assets. Usually, these programs entail con artists creating fictitious social media profiles to pass for official projects. These stories then entice victims to dangerous websites where sensitive data is compromised, usually with reference to counterfeit verification badges.

Following a temporary break due to increased demand last month, Inferno Drainer—a well-known draining-as-a-service (DAAS) provider—resumed activities. This service was linked to the theft of $6.9 million worth of 1,807 Ether.fi-Liquid1 tokens.

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