CoW Protocol Powers MakerDAO’s Transition
CoW DAO, which builds user-protective products like CoW Swap, Cow Protocol, CoW AMM and MEV Blocker, has partnered with Sky, formerly MakerDAO to help the project migrate its tokens as it transitions to its next chapter.
The team behind Sky approached CoW DAO to integrate CoW Protocol into their SWAP feature to allow users to seamlessly, and safely swap their tokens between DAI and its replacement, USDS, and its governance token MKR to SKY.
This is sizeable task: the MakerDAO transition is one of the largest token migrations. DAI is one of the world’s largest stablecoins, with a market cap of $5.3 billion and more than 500,000 holders. MKR, meanwhile, has a market cap of $1.5 billion and more than 100,000 token holders.
“Sky selected CoW Protocol as its primary partner for token migration because it recognizes that CoW's unique batch design enhances both user experience and price efficiency," says Anna George, co-founder and CEO of CoW Protocol.
Sky's choice to work with CoW DAO on such an important upgrade demonstrates that CoW Protocol is the place big projects go when they want to do big things.
How will it all work?
CoW Swap is being integrated into Sky’s native swap system, meaning that, in addition to facilitating swaps between DAI, USDS, MKR, and SKY, CoW Protocol will handle all token swaps within the Sky UI going forward. This represents a step change in the amount of volume CoW Protocol will handle going forward.
This will take place on Sky.money, decentralized gateway to the Sky Ecosystem and provides access to the key features of the Sky Protocol, including upgrading DAI to USDS, and MKR to SKY. But users can also use CoW Swap to upgrade their old MKR and DAI tokens to the new SKY and USDS.
The upgraded stablecoin of the Sky Ecosystem is USDS. USDS can be upgraded from DAI or converted from USDC at a 1:1 ratio, on Sky.money and other frontends. USDS can also be converted back to DAI. Upgrading is optional.
The Governance Token of the Sky Ecosystem is SKY. MKR holders can upgrade their MKR to SKY, and SKY can also be converted back to MKR. Upgrading is optional. Users get 24,000 SKY per MKR when they upgrade.
Bringing DeFi to a Wider Audience
Decentralized Finance is at an inflection point. The industry has successfully matured and scaled and, with the right push, is poised to begin providing large scale value to regular people. By focusing on delivering innovative ways for everyday users to unlock the inherent benefits of DeFi, Sky will do its part in bringing the benefits of DeFi to the mass market.
CoW DAO believes in this mission too. By providing a safe and simple way for DeFi users to swap tokens without fear of MEV attacks helps DeFi achieve mass market adoption.
