#ChartoftheDay In the last few months, #DEFİ project and the issuer of stablecoin DAI, MakerDAO, has been brewing some major changes to their protocol. Last week, MakerDAO announced it was rebranded to Sky. Along with it, it will upgrade and extend itself with two upgraded tokens and several new features, scheduled to go live on Sep 18.

#DAI will upgrade to a new stablecoin, USDS (Sky Dollar), at a 1:1 ratio, and MakerDAO’s governance token, MRK, will become upgradeable to SKY at a 1:24,000 ratio.

USDS holders will have access to SKY token rewards, built into the Sky Protocol, from the moment it launches. The SKY token rewards will be distributed at 600 million SKY annually, representing a 2.5% inflation to the current circulating supply, across participating USDS holders.

Maker’s Spark lending market subDAOs (now known as Stars) will airdrop 66.66M SPK to participants once the token goes live. Annual subsidies of 1B SPK will be distributed over the following four years to incentivize USDS and Maker token activation programs.

Other key elements of Sky include a new DeFi app, Sky.money, which will provides access to the key features of the Sky Protocol, and the multichain solution Skyline, which will launch and begin connecting USDS, SKY, and other Sky Ecosystem tokens from Ethereum Mainnet to major L2s.

Decentralized stablecoins are facing much regulatory pressure, especially in the US. Dai’s market cap kept declining after hitting an all-time high of around $9.87B in Feb 2022. Now, it stands at only 45.5% of this record. Despite ranking third among all stablecoins by market cap, DAI’s market cap is only 4.5% of USDT and 15.5% of #USDC.

Its founder, Rune Christensen, revealed the intention to upgrade DAI in May of this year. He indicated that there would be two stablecoins, one aimed at regulatory compliance and scale and the other at decentralization ideology. Judging by the announcement, USDS should be the first one. This means it will need to compete with its centralized competitors. PureDai, which should be the second one, will be launched after USDS.