MakerDAO rebranded to Sky in August as part of the protocol's endgame roadmap

The proposal was published on Sky's governance forum on May 1 and will be subject to community feedback before being put to an on-chain vote

DeFi lending protocol Sky, formerly known as MakerDAO, is looking to finalize the migration of its governance token from MKR to SKY.

The proposal was published on May 1 and will be subject to community feedback before being put to an on-chain vote at a later date.

The proposal includes activating SKY staking and USDS rewards for SKY holders, transferring governance processes to SKY-based voting, and disabling migrations from SKY to MKR.

MakerDAO overhauls operations with SKY-MKR pivot

Announced August 17, the rebranding was part of the protocol’s endgame roadmap, which also aimed to simplify the project, introduce new tokens, and usher in a branding overhaul.

According to Sky, just 14% of MKR’s supply has been migrated to SKY since the new token went live in September.

Sky also launched a new stablecoin, USDS, which has attracted more than $4 billion in migrations. However, more than $3 billion in liquidity remains in the form of its original stablecoin, DAI, according to CoinGecko. The stablecoins’ combined market cap ranks third-largest behind Circle’s USD Coin.

Endgame facilitates the protocol’s reorganization into subDAOs called Stars, each of which features a distinct governance mechanism and token. Spark, Sky’s first subDAO, which comprises a fork of the Aave v3 money market protocol, currently boasts a total value locked of $4.5 billion, according to DeFillama.

Although Sky ranks as the fourth-largest DeFi protocol with a $6.14 billion TVL, the protocol suffered the heaviest drawdown among the top 10 DeFi projects during April with a 21% dip.

Sky’s multi-chain expansion

Sky has sought to expand to new networks since undergoing its rebrand, launching USDS on Solana in November. Users quickly migrated nearly $92 million in USDS onto Solana by December, and USDS’s market now sits at $111.4 million, according to Blockanalitica.

Sky followed up by deploying on the Base layer 2 network in January. The move quickly proved successful, with $125 million in USDS moving onto Base by the end of March. However, USDS’s market cap on Base has since tumbled by more than half, with $56.7 million in USDS currently residing on the network.

Sky also launched on the Arbitrum layer 2 in March. However, adoption has been comparatively sluggish, with users bridging just $20.2 million in USDS onto Arbitrum to date.