Author: Jesse Coghlan, CoinTelegraph; Translated by: Wuzhu, Golden Finance
Decentralized finance (DeFi) protocol Sky’s new crypto stablecoin may have a decentralized court-style appeals process as part of its freeze feature — if it ever goes live, its co-founder said.
Sky co-founder and former Maker founder Rune Christensen noted that it is possible to “design a freeze function that is more decentralized than centralized stablecoins.”
The protocol’s stablecoin USDS (a rebrand of its Dai stablecoin) was heavily criticized by DeFi experts online last month for a feature that allowed freezing of tokens.
Christensen clarified last month that USDS will not have a freeze feature at launch, but that it could be upgraded with the feature if the governance body decides to add it.
If the feature does go live, he noted that users with frozen USDS could “leverage the power of decentralized governance to ensure things like due process” are done transparently.
“I think one of the interesting things is the appeals process, which actually gives everyone the right through decentralized governance and gets transparent reasons why the unfreeze was not allowed.”
Christensen believes that the Sky protocol can “make objective judgments about objective decisions” using rules for how the system should operate.
He said it’s “impossible to know” when or if the USDS freeze feature will go live — but it would require “very careful legal, political, and regulatory analysis, and obviously a very thorough design process by decentralized Sky governance.”
USDS can be transferred between blockchains via Skylink
USDS and the Sky Protocol will also subsequently work across many blockchains through a protocol called Skylink, which Christensen said is designed to “meet users where they are.”
“No matter where Skylink is deployed, nearly the full set of native functionality will be available natively on the target chain,” he said.
Rune Christensen attends the Korea Blockchain Week conference in Seoul. Source: Cointelegraph
These include a native version of USDS and its functionality (rather than a “temporary separate solution” like DAI), as well as the Sky protocol and its functionality.
Christensen said Skylink can be deployed on “many different blockchains,” including both layer 1 and layer 2 networks.
“Multichain is essential if you want to get those marginal users who use the chain they’re on,” he said. “If there are valuable users out there, the only way to get them is to scale.”
Christensen added that cryptocurrencies have long been dominated by a “‘build it and they will come’ mentality” — which is “not the way the world works anymore.”
“In the cryptocurrency space, right now you have to really fight for the users. So you have to do everything you can to make it easy and approachable.”
Christensen said Skylink’s launch will come “a few months” after Sky’s September 18 launch.
