tl;dr
Sky, the DeFi protocol formerly known as MakerDAO, is facing community pressure over the potential inclusion of a freeze function in its upcoming USDS stablecoin. Co-founder Rune Christensen defended the function as a regulatory compliance tool during Korea's Blockchain Week. Sky has introduced a go...
Sky, formerly MakerDAO, faces community pressure over potential freeze function for upcoming USDS stablecoin, defended as necessary for regulatory compliance by co-founder Rune Christensen
Sky introduces new governance model based on subDAOs called Sky Stars, aiming for regional compliance while maintaining decentralized infrastructure
Launch of sky.money app aims to make DeFi more accessible, offering features like Sky Savings Rate and Sky Token Rewards
Users not required to migrate from Dai to USDS, with liquidity shared between tokens to ensure continuity while providing benefits for engaging with upgraded features
Sky, the DeFi protocol formerly known as MakerDAO, is under pressure from its community after co-founder Rune Christensen confirmed last month the protocol’s upcoming USDS stablecoin could feature a freeze function sometime in the future. Although the function will not be enabled at launch on Sept. 18, the idea of including the mechanism has sparked concern about the centralization of Sky’s ecosystem. Christensen, addressing recent concerns in an interview with Decrypt during Korea’s Blockchain Week in Seoul on Wednesday, defended the freeze function as a necessary tool for regulatory compliance in jurisdictions where real-world assets back the stablecoin.
The protocol has introduced a new governance model based on subDAOs called Sky Stars, aiming to specialize in regional compliance while still maintaining its decentralized infrastructure. Each Star operates independently, managing its own governance, treasury, and specialization while still being part of the broader Sky protocol. Sky is also launching sky.money, an app designed to make DeFi more accessible to mainstream users, lowering barriers for those unfamiliar with decentralized platforms and offering access to features like Sky Savings Rate and Sky Token Rewards.
Despite these new features, users are not required to migrate from Dai to USDS. Dai and MKR will continue to exist alongside the new tokens, with liquidity shared between them. This will ensure that those satisfied with the current system can continue using it without disruption, while users seeking additional benefits can engage with the upgraded USDS and Sky features.