MKR → SKY, DAI → USDS: The Next Generation of Tokens

MakerDAO, the organisation behind Maker (MKR) and Dai (DAI), has rebranded to Sky Protocol. MKR, the governance token, has been upgraded to Sky Governance Token (SKY), and DAI, the stablecoin, has been upgraded to USDS. This rebrand aims to make decentralised finance (DeFi) more accessible and user-friendly for mainstream adoption.

MKR will remain a separate token to SKY, but it can be swapped for SKY on the SKY protocol or on CoinJar (normal fees apply).

USDS and DAI will be two separate tokens, with both Dai and USDS being used in the Sky Protocol.

DAI and USDS remain interchangeable.

According to the Sky Protocol documents, “USDS is linked to the same issuance source as DAI, ensuring that USDS maintains parity with DAI. The converter contract allows holders of DAI or USDS to convert between these ERC20 tokens at any time, with no liquidity restrictions.”

DAI remains the legacy stablecoin, and USDS is the newly upgraded version under Sky Protocol.

The optional upgrade lets users take advantage of new features (like earning rewards via Sky Savings Rate or Sky Token Rewards).

There is no indication that DAI will be phased out entirely (yet!) and HOLDERS can continue to use it or opt for USDS.

MKR to SKY: Why is this happening?

The goal is to simplify DeFi and attract a broader audience. MakerDAO, an early leader in DeFi, is transforming its core products to enhance usability and scalability while maintaining its decentralised roots. The rebrand is part of a strategic overhaul to streamline governance and foster innovation.

The changes

New stablecoin

The USDS stablecoin, designed to maintain a $1 value, is the upgraded version of DAI. USDS has surpassed DAI by market cap. DAI still however remains active as a stablecoin in the top ten list of stablecoins. Users can swap USDS back to DAI at a 1:1 ratio.

New governance token

SKY, the upgraded version of MKR, is the governance token for Sky Protocol. SKY holders can vote on protocol decisions, stake tokens to earn rewards, and borrow USDS via the Staking Engine. Each MKR token can be swapped for 24,000 SKY tokens on the Sky Protocol. Or CoinJar customers can swap MKR for SKY on CoinJar (normal fees apply).

Note that a penalty fee for late MKR to SKY conversions on the Sky Protocol may apply starting September 18, 2025.

MakerDAO’s SubDAOs are now called Sky Stars, independent projects within the Sky ecosystem.

The rebrand to Sky signals a push for mainstream DeFi adoption. If you choose not to upgrade, DAI and MKR remain functional within the Sky system but lack access to these new features. Many crypto exchanges, such as CoinJar, are supporting MKR to SKY swaps.

CoinJar-Specific Information

CoinJar is aligning with MakerDAO’s transition to Sky Protocol by delisting MKR and listing SKY on its platforms. Below are key details and actions for CoinJar customers:

SKY is available for trading on CoinJar and CoinJar Exchange. MKR trading, Bundles, and Recurring Buys have ceased on CoinJar and CoinJar Exchange. MKR deposits are disabled, and all open MKR trading orders on CoinJar Exchange have been cancelled, with remaining MKR returned to CoinJar accounts.

To convert to SKY at the protocol rate: Withdraw MKR to an external wallet that supports the 1:24,000 MKR→SKY migration.

Selling, swapping, rebalancing, or disposing of MKR may have tax implications, including Capital Gains Tax. This is not tax advice; please consult an accountant or financial advisor.

Maker to Sky

Sky Protocol’s transformation reflects a commitment to simplifying DeFi and enhancing user experience. The introduction of USDS and SKY aims for long-term growth in the DeFi landscape.