In less than 24 hours, MakerDAO will officially become @SkyEcosystem via a Governance vote 📩

In this post, you will find all you need to know to prepare for the transition; let's go! 👇

So, what is $Sky?

https://t.co/ANbJEPsS56 is the DeFi ecosystem formerly known as MakerDAO. It seeks to become the best and easiest place to get rewarded for saving.

Soon, with this transition, DeFi’s oldest and most trusted protocol will incur some pretty significant changes.

🔸 Two new upgraded tokens with new benefits $DAI can be upgraded to $USDS, an asset with native token rewards. $MKR can be upgraded to $SKY.
🔸 SubDAOs are now $Sky Stars: Small, specialized, decentralized ecosystems within the broader $Sky Ecosystem.
🔸 Plus much more to come…

You are probably thinking… “What does this mean for me? How can I get in on the action?”

DeFi, for better or worse, has trained users to think about immediate rewards, tokens, points, and incentives as new and existing protocols make significant changes and announcements…and this is no different.

The MakerDAO → @SkyEcosystem transition is a bit different.
There are incentives involved, but there is also a thriving ecosystem of $DAI and $MKR holders who need to be made aware of the changes that will take place.

Are you ready for MakerDAO to become $Sky Ecosystem? 👀 Let's answer five key questions:

1️⃣ What is changing?

✅ $DAI will become $USDS, the upgraded stablecoin of the $Sky Ecosystem.
The first big change is that $DAI can now be upgraded to USDS. If you don't hold $DAI, you can also swap $USDC for USDS:

🔸 $USDS can be converted back to $DAI and upgrading to $DAI is optional, but you will forego certain benefits of USDS.
🔸 $USDS can access the $Sky Savings Rate via $sUSDS, which provides a competitive yield and has already been battle-tested with >1B in TVL.
🔸 $sUSDS token represents a tokenized implementation of the $Sky Savings Rate for $USDS, fully compliant with the ERC-4626 standard.
🔸 $USDS Token Address: 0xdC035D45d973E3EC169d2276DDab16f1e407384F https://t.co/zaqaEA046t
🔸 $sUSDS Token + Vault Address: 0xa3931d71877C0E7a3148CB7Eb4463524FEc27fbD https://t.co/Qqagk2gs6n

✅ $USDS (Upgraded $DAI) will have native $SKY (prev $MKR) token rewards.
MakerDAO has had a conservative approach to token farming in the past, but the $Sky Ecosystem is taking a more innovative approach.
For the first time, users can farm $SKY token rewards directly from the protocol:
🔸 Deposit your $USDS or $sUSDS in the $Sky Protocol.
🔸 The $SKY Token Reward will be distributed at a rate of 600 million $SKY per year, across participating $USDS holders.

✅ $MKR will become $SKY, the governance token that can now be earned.
If you hold $MKR, it can be upgraded to $SKY, and $SKY can also be converted back to MKR:
🔸 Core to the upgrade is a 24,000 for 1 $SKY per $MKR token split that users will automatically receive.
🔸 Regarding $SKY liquidity, the Smart Burn Engine will target the SKY/USDS market with all of its current and future automatic liquidity provisioning. So you’ll be able to get in and out of most trades, should you care to do so.
🔸 Later on, $SKY will gain additional features which give users USDS and $SKY Token Rewards for committed participation in $Sky Governance.
🔸 Upgrading from $SKY to $MKR is optional.
🔸 $SKY Token Address: https://t.co/xCRkq7sI4m

✅ SubDAOs are now Stars, smaller, specialized, decentralized communities within the $Sky Ecosystem that are incentive-aligned with the $Sky Protocol:
🔸 The name is much better, lets be honest.
🔸 Spark will be the first $Sky Star, and it will shortly launch the $SPK governance token. This is distinct from the SPK Airdrop which is separate from SPK Token Rewards.

2️⃣ What do you need to DO if you hold $DAI or $MKR?

Let's go over six things you can do in this transition 👇
🔸 Early Bird: You can still sign up for early bird bonuses by going to https://t.co/kBytwScIFs and signing message with your wallet.
🔸 $DAI Holders: Upgrade your $DAI → $USDS or $sUSDS.
🔸 $MKR Holders: Upgrade your $MKR → $SKY.
🔸 $USDC Holders: Convert your $USDC → $USDS or sUSDS.
🔸 $USDS or $sUSDS Holders: Deposit your USDS or sUSDS to earn $SKY Rewards.
🔸 Boomers: Do nothing, everything available is optional and you can continue to hold $MKR or $DAI if you’d like.
All actions above will be available at launch on https://t.co/edwMMaGtVb ☀

3️⃣ Best ways to take advantage of the MakerDAO → $Sky Ecosystem transition!

Ultimately, thats up to you! but here are a couple of ideas using https://t.co/edwMMaGtVb
🔸 Straightforward Farming: Depositing USDS or sUSDS to farm $SKY Token rewards. Available on launch.
🔸 Double Farming: Depositing and Borrowing using Spark to pre-farm SPK, using borrowed $DAI, $USDC, or USDS to deposit and farm $SKY -> https://t.co/dCwPUwUajt
🔸 $MKR Multiplying: Using Morpho to go long $MKR in anticipation of better tokenomics and demand -> https://t.co/Fao9x5fOha

4️⃣ Why will https://t.co/edwMMaGtVb be the best place to interact with the $Sky ecosystem?

https://t.co/edwMMaGtVb and https://t.co/ANbJEPsS56 have the same parent… MakerDAO
The story of https://t.co/edwMMaGtVb is that we were the original frontend for MakerDAO, and now, as it becomes $Sky, we believe we are still the best place to access the protocol.
Why? 👇
🔸 Open to anyone: We don’t restrict users based on geography.
🔸 Ecosystem-wide support: $Sky is poised to be a central piece of DeFi, and Summer makes it easy to access all the best of DeFi in one place.
🔸 Convenience Features: Pretty much all you can think of - multiply, refinance, close… all in one transaction.
🔸 Safe and simple automation: Set and forget your strategy on $Sky and other protocols like Spark
🔸 Advanced Data: compare and contrast borrow rates, yields and see you PnL in real time.
🔸 The best that DeFi has to offer… always.

5️⃣ What’s next for $Sky? The $SKY is infinite, so there is much more to come!

Beyond the two token upgrades and $SKY Rewards farming, what else do users have to look forward to? 👇

🔸 $SPK Token launch and Farming: Will be distributed primarily through the $Sky Token Rewards that USDS can access. USDS users will receive Token Rewards at a rate of 700 million SPK tokens per year. Activated $SKY will receive SPK Activation Rewards at 150 million SPK tokens per year Sealed $SKY or $MKR will receive SPK Activation Rewards at a rate of 150 million SPK tokens per year. Activated SPK will receive $SKY Activation Rewards at a rate of 80 million $SKY per year, available for eligible users.

🔸 $SKY Activation Rewards: A less committed version of Sealed Activation, where $SKY holders receive Activation Rewards, but don’t have to Seal their tokens behind and Exit Fee. $SKY can be freely Activated and Deactivated instantly, at any time. $SKY holders will be eligible to get 15% of the total SPK supply as Activation Rewards.

🔸 $MKR & $SKY Sealed Activation: Sealed Activation encourages long term governance participation by enabling $MKR and $SKY holders to Seal their tokens behind an Exit Fee in return for Rewards. Eligible users who have Sealed their $MKR or $SKY receive Activation Rewards. Initially, Activation Rewards are only available in the form of USDS. Sealed Activation users can also choose to receive SPK tokens. In exchange for the benefits of using Sealed Activation, Sealed $SKY and $MKR tokens pay a 5% Exit Fee when they are Unsealed. The Exit Fee begins at 5% when Sealed Activation launches, and increases by 1% every 6 months for the next 5 years until it reaches 15%, which is the permanent Exit Fee.

🔸 Skylink: The multichain solution of the $Sky Ecosystem.
Skylink makes all of the core $Sky features available on the L2s and blockchains it is deployed to, including: Native USDS, Native $Sky Savings Rate, Native Token Rewards, native 1:1 conversion between $USDC and USDS. Skylink deployments to additional L2s and L1s will follow later.

This is the next chapter for DeFi's oldest and most trusted protocol, and we're enthusiastic about what's coming! 💜

Join us and break free from limitations at https://t.co/x7aLPCpg2z 👾