Yahya 
The decentralized finance project Maker, which is now known as Sky, is under criticism because of a newly added feature of the project’s stablecoin, USDS, that has a so-called ‘freeze function’. This aspect is causing quite a debate because it appears that this project is not entirely decentralized as some of its enthusiasts may have wanted.
The complaint mostly revolves around the likelihood that USDS will enable its issuer to halt token freezing, unlike its predecessor DAI. Critics contend that this runs against accepted ideas of distributed money. Maker co-founder Rune Christensen said on August 27 that USDS will be built with an upgrade capacity instead of a freeze capacity, thus future governance choices would be able to introduce such a feature were necessary.
Particularly for financing the new stablecoin using US Treasuries, the possible freeze feature seems to be linked with regulatory compliance. “You are going to have a freeze function and a VPN jurisdiction blocker even if you want T-bill yield backing, even by secondary treasury deals,” Cinneamhain Ventures partner Adam Cochran said in advocating this strategy. This has not, however, lessened worries as many of the DeFi community members believe it might compromise the liberties projects are meant to provide.
Emphasizing that changing to USDS is voluntary, Christensen informed DAI clients DAI would not alter and free from any freeze capability. Notwithstanding these guarantees, the debut of USDS with its centralized characteristics has generated a lot of discussion on the route Maker’s and the DeFi ecosystem will go.
DeFi efforts still reflect the criticism as it fits very well with a more general problem on the conflict between decentralization and regulatory compliance.
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