Crypto Moves #47 – Maker, or now, Sky, Sacrifices Profit for Growth

On August 27, the decentralized autonomous organization (DAO) Maker, known for managing the world’s largest partially decentralized stablecoin, Dai, announced that it would rebrand to Sky on September 18. Starting on that date, Dai stablecoin holders gained the ability to convert their Dai 1-to-1 into Sky Dollar (USDS), the new stablecoin of the Sky ecosystem. This shift is part of Maker’s “Endgame” roadmap—a vision that co-founder Rune Christensen has been developing for years.
As highlighted in this note for our Crypto Portfolio, we hold Maker—now Sky—in our Crypto Portfolio. We remain as bullish as ever on Sky, if not more so, despite the fact that not everything about Sky’s evolution is strictly positive.
Because of the immutability of the original Maker and Dai smart contracts, Maker could not directly transition to the Sky brand or USDS, nor could it introduce new features to the existing setup. This limitation required the creation of a completely new onchain stablecoin, with a 1-to-1 conversion mechanism between Dai and USDS. Since this conversion option became available on September 18, USDS supply has grown to about $1 billion. Meanwhile, Dai’s supply has seen a slight increase as well, resulting in an overall stablecoin supply increase of roughly $1 billion within the Sky ecosystem.
Chart 1: Dai and USDS: Total Supply
We expect that in the coming months, the supply of USDS will outpace that of Dai. Alongside the shift from Dai to USDS, Maker holders are also encouraged to convert their Maker tokens to Sky at a 1-to-24,000 ratio, meaning that each Maker token converts into 24,000 SKY tokens.
However, only a small portion of holders have made the switch so far. As a result, Sky’s current market cap of about $100 million remains significantly lower than Maker’s approximate $1.2 billion market cap. Nonetheless, we anticipate that within six months, Sky’s market capitalization will surpass that of Maker.
The decentralized stablecoin protocol Maker is undergoing a transition to rebrand as Sky, with its stablecoin shifting from Dai to USDS. This change is expected to significantly reduce Maker’s profitability, but we anticipate that it will drive substantial growth instead. Overall, we remain highly optimistic about this transition.
0 Comments