The decentralized finance project Maker, now rebranded as Sky, is under fire for its new stablecoin, USDS, which includes a controversial freeze function. This feature, which allows the issuer to halt transactions, has sparked concerns over the project’s commitment to decentralization.
Critics argue that the freeze function could undermine the core principles of the platform, with many questioning its necessity. However, Rune Christensen, Sky’s co-founder, clarified that the freeze function will not be active at launch. Instead, the stablecoin will initially have an upgrade capability, allowing future governance to decide on implementing the feature based on risk assessments.
Christensen clarified that activating the freeze function would ensure compliance with legal requirements in the jurisdictions where Sky operates. The purpose of this measure is to safeguard the real-world assets (RWA) that support the stablecoin.
Additionally, the project’s website has begun blocking access through VPNs, further fueling criticism from the DeFi community. Despite the backlash, Christensen reassured users that the original Dai stablecoin would remain unchanged and continue to function as before, with USDS being an optional upgrade.
