- DAI to USDS Conversion
- Impact of the Freeze Function
- Blockchain Future for MKR and DAI
MakerDAO, a leading platform in decentralized finance, has recently undergone a rebranding and is now known as Sky. Alongside this change, their widely-used stablecoin, previously known as DAI, has been upgraded and rebranded as USDS.
DAI to USDS Conversion
Users can upgrade from DAI or convert from USDC to NetStable at a 1:1 ratio. According to Sam MacPherson, CEO of Phoenix Labs and Spark Protocol, the upgraded USDS (formerly DAI) will include a freezing function, a feature already present in other centralized stablecoins like USDT and USDC.
Impact of the Freeze Function
The introduction of this freeze function has sparked criticism, with concerns being raised about the potential impact on the protocol’s decentralization. A post on the MakerDAO forum stated that in addition to NewStable, a purely decentralized stablecoin called PureDai will also be made available as an option for users who prefer the vision of pure decentralization.
Blockchain Future for MKR and DAI
According to Rune Christensen, Co-founder of Sky (MakerDAO), there will be no freeze function at launch, only an upgradeability. Christensen also stated that upgrading to USDS is optional and that it is only USDS that will have a freeze function. MKR and DAI play a pivotal role in the decentralized finance ecosystem. As regulatory scrutiny intensifies, MakerDAO is enhancing DAI’s stability by diversifying its collateral base and exploring real-world assets. Grayscale has introduced a crypto fund for MakerDAO’s MKR. Furthermore, new tokens NewGovToken and NewStable were issued as part of its 'endgame' plan. Holders will be able to convert one MKR token for 24,000 NGT tokens. MKR token holders are preparing for governance updates aimed at bolstering the protocol’s resilience and growth.
MakerDAO's plans to upgrade DAI to USDS set a new course for the stablecoin but raised concerns about the future of decentralization. The MakerDAO community is preparing for changes, strengthening their strategies and approaches to adapt to new challenges.
