The MakerDAO project, which is the issuer of the largest algorithmic stablecoin by market capitalization DAI, is set to rebrand. The company unveiled a replacement for the stablecoin. DAI will be replaced by USDS. The issuance of new tokens will start on September 18. What will this change and why is it necessary? How will old and new tokens be able to operate in tandem?
MakerDAO is a major DeFi project, with a huge amount of assets under management. This is a serious ecosystem that has already established itself in the market. It is not burdened by meaningless activities, but is moving towards a large-scale restructuring of its protocol.
Replacing DAI with USDS and updating the MKR token to SKY is not just a rebranding for the sake of rebranding. The project aims to scale up DeFi and create a more competitive decentralized stablecoin. This is a logical step in the development of the project, given the growing competition in the stablecoin market.
Admittedly, some implementation details may raise questions. But it seems that the parallel existence of old and new tokens, with the ability to exchange 1:1, is a pretty smart approach to ensure a smooth transition for users. The project is proving to be serious, with forward-thinking players in the DeFi market.
Why is this necessary? In the context of rising competition and development of the decentralized finance market, it is becoming crucial not only to improve the technological base of protocols, but also to create attractive conditions for users and investors. Rebranding and updating tokens will allow MakerDAO not only to strengthen its position, but also to offer more efficient and scalable DeFi solutions.