Binance Completes Maker Token Transformation and Launches New SKY Token
On September 17, Binance confirmed the successful transition of the Maker (MKR) token to the newly branded Sky (SKY), along with a token increment. The exchange has now enabled deposit and withdrawal functionalities for the SKY token. Currently, SKY is trading at 0.07414 USDT, boasting a circulating market capitalization of around 1.72 billion USD and a daily trading volume nearing 21.49 million USDT. As reported, the migration from MKR to SKY is set to adopt a delayed upgrade penalty system, initiating a 1% deduction from September 22 following governance approval, with an additional 1% reduction every three months thereafter. As of now, the migration completion rate from MKR to SKY stands at approximately 78.2%, while the transition from DAI to DSDS is about 53.6%. Investors are encouraged to reassess the future narrative of the DeFi powerhouse, Sky.
### Brand and Governance Overhaul
Sky is the evolution of MakerDAO, a prominent decentralized stablecoin and credit infrastructure. It operates mainly on two foundational mechanisms: stablecoins and anchoring, which facilitate low-slippage swaps through the Peg Stability Module (PSM) and custodial stablecoins like USDC, stabilizing prices during market fluctuations and enabling cost-effective entry and exit points; and interest rates and credit, which establish an on-chain capital pricing framework through stability fees, savings rates, and liquidation parameters. This transformation in brand and governance involves shifting control from MKR to SKY (1 MKR = 24,000 SKY), updating the stablecoin from DAI to USDS, and consolidating data and access through sky.money. Users who upgrade will gain access to new key features, such as native token rewards, where USDS holders can earn SKY governance tokens via the new application sky.money. For those with positions on exchanges, most swaps will be processed automatically; however, users with self-custodied wallets will need to connect their wallets via the official entry point and execute the upgrade contract to finalize the exchange (gas fees will apply). DAI holders can decide whether to convert their tokens into USDS, with both DAI and MKR remaining as legacy tokens within the rebranded Sky protocol.
### Financial Mechanisms: SSR, MIP65, PSM
Sky’s annualized savings rate is designed as an on-chain equivalent of a money market fund rate anchor (SSR). When users deposit USDS into the savings contract, they will receive a “receipt” in the form of sUSDS, with earnings compounding automatically and redeemable anytime for USDS. For SSR to function effectively as an anchor, a steady cash flow is essential. This foundation is being established through MIP65, an investment authorization that allows compliant allocation of stable assets gathered via PSM into short-duration U.S. Treasury bonds and investment-grade debt, generating measurable coupon income. Once in the Sky phase, revenues from MIP65 will contribute to the system surplus, which will be allocated to savings rates and ecological incentives, bridging off-chain coupon income with on-chain distributions. This strategic approach allows SSR to maintain stability without being solely dependent on secondary market conditions, backed by consistent cash flow.
Sky’s USDS and DAI, along with Aave’s GHO, belong to the collateralized debt position (CDP) category of decentralized stablecoins. A recent Galaxy report highlights that GHO operates under Aave’s lending and liquidation framework, following a “collateralization – minting – repayment – burning” model. In contrast, Sky emphasizes the issuance of its own CDP stablecoin and anchoring mechanism, leading to distinct differences in governance and operational parameters compared to traditional lending protocols. The report indicates that in terms of scale and flexibility within the CDP framework, Sky’s system remains at the forefront, with GHO, FRAX, and LUSD occupying smaller tiers, which influences their operational latitude concerning interest rates and incentives. In terms of overall scale, Rune noted that Sky ranks as the fourth largest stablecoin project worldwide, with a total volume of approximately 8.062 billion USD, including around 4.32 billion USD (53.6%) in USDS and about 3.74 billion USD (46.4%) in DAI. Data from makerburn reveals that Sky’s total value locked (TVL) is around 11 billion USD, with a system surplus estimated at 20.55 million USD. Additionally, it was mentioned that Sky’s native buyback mechanism generates 250 million USD in annual profits, currently allocating 36 million USD each year for SKY token buybacks, with plans to increase this to 150 million USD annually as profits grow.
### Strengthening Cash Flow
Sky Stars are independent protocol units that Maker relies on for innovation beyond its core DAO structure. The first of these units, the Spark protocol, serves as a lending and capital scheduling layer. According to data from DeFiLlama, the total value locked in the Spark Liquidity Layer is approximately 3.2 billion USD, consistently remaining above the 3 billion mark. This year, Spark launched a tokenization competition aimed at attracting up to 1 billion USD of real-world assets (RWA) into its ecosystem, with subsequent updates confirming the selection of winners and the actual deployment of this capital. Furthermore, Sky is in contention for the issuance rights of USDH from Hyperliquid. Recent public data indicates that Hyperliquid’s trading volume is nearing 400 billion USD, with USDC deposits on the platform around 5.5 billion USD, representing about 7.5% of the total supply of this stablecoin. Sky is set to offer approximately 4.85% returns for USDH held on Hyperliquid, with profits allocated for HYPE buybacks and support funds. Additionally, the platform will provide around 2.2 billion USD in instant redemption liquidity through PSM, enhancing institutional capabilities for large-scale inflows and outflows. Rune also highlighted that Sky could commit 25 million USD of USDH to capitalize the Hyperliquid Genesis Star, which will be exclusively held on the Hyperliquid blockchain. These initiatives clarify Sky’s strategy for reinforcing cash flow foundations, drawing not only from MIP65’s internal portfolio but also enhancing through external partnerships. Over the past year, Sky has been exploring avenues to bring broader RWA on-chain, including institutional-level credit, aimed at strengthening the underlying cash flow. The anticipated expansion will directly influence the growth of USDS on the supply side and the absorption of sUSDS on the demand side, thereby contributing to the stability of SSR and expected distributable cash flow.
### Conclusion
The migration upgrade to Sky aligns governance, stablecoin issuance, and cash flow distribution into a coherent strategy. The extent of this narrative’s reach will not be determined merely by the token swap but rather by the effectiveness of governance in enhancing user experiences, the sustainability of cash flow, and the ability for funds to move steadily along the interest rate anchor. For traders, the focus should shift from a one-time token swap to analyzing the trends and data, as these elements will shape the mid-term price dynamics of SKY.
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