All blogposts
Important Update for DPI Holders: MKR to SKY Migration
Important Update for DPI Holders: MKR to SKY Migration
MakerDAO is migrating its token from MKR to SKY, a major transition affecting 16% of the DeFi Pulse Index. To avoid gradual value loss due to late migration penalties, we recommend DPI holders take action.
7/16/2025
Index Coop
Content
MakerDAO is migrating its governance token from MKR to SKY, a major transition affecting approximately 16% of the DeFi Pulse Index (DPI). Due to the constraints of DPI’s immutable smart contract, we are unable to migrate MKR directly to SKY within the DPI token.
Why This Matters
After September 18, 2025, Maker will begin enforcing a Delayed Upgrade Penalty for late migration, initially set at 1%. This penalty increases by an additional 1% every three months, gradually reducing the relative value of MKR tokens compared to SKY. As MKR becomes less valuable, DPI will also lose proportional value, negatively impacting holders.
Recommended Actions
To avoid gradual losses due to the MKR-to-SKY migration penalties, we strongly recommend DPI holders take one of the following steps before September 18, 2025:
Sell DPI for ETH or USDC: Use our simplified swap interface at app.indexcoop.com/swap.
Basic Redeem for Underlying Tokens: Redeem your DPI tokens for individual underlying tokens (MKR, AAVE, UNI, ENA, LDO, etc.) via our legacy app: app.indexcoop.com/legacy. Important: Choosing this option will leave you holding smaller amounts of each underlying asset separately on Ethereum mainnet, potentially leading to additional ETH gas fees when you later sell or transfer these tokens. However, this option allows you to migrate your MKR holdings to SKY directly and stake them independently if desired.
For full details about the Maker MKR → SKY migration and penalty structure, please visit the official migration site: upgrademkrtosky.sky.money.
Thank you for your attention to this matter.
Dive deeper
Watch, read, and learn everything you need to master our leverage tokens.
Subscribe to our newsletter
Join over 6,000 subscribers in receiving weekly updates about our products, DeFi, and the onchain structured products space.
FAQs
Streaming fees (an annual fee paid continuously block-by-block)
Mint and redeem fees
Borrow costs (interest paid to borrow funds from onchain markets when using leverage)
Index Coop yield tokens simplify earning yield in DeFi by automating complex strategies and diversifying across protocols. They are user-friendly and cost-efficient, appealing to both new and seasoned DeFi users.
Leverage tokens automate a leveraged position by utilizing onchain money markets like Aave or Morpho to borrow funds, amplifying a user's exposure to an asset without requiring manual management. The token's smart contracts autonomously handle the borrowing, lending, and rebalancing of assets, maintaining a consistent leverage ratio despite market fluctuations. This automation eliminates the complexities of collateral management and liquidation risks, while also charging low, transparent fees that avoid expensive funding rates often charged by perps.
Index Coop is a decentralized autonomous organization (DAO) that specializes in creating and maintaining onchain structured products. Index Coop aims to democratize access to the crypto market, empowering everyone to participate in the growing digital asset ecosystem with ease.
No, yield automatically compounds and accrues to the token price. The value of the tokens you hold in your wallet will simply go up over time without the need to claim or compound rewards.
Index Coop products protect you from liquidation with automated risk management that rebalances assets to maintain a target leverage ratio that avoids liquidation.
INDEX is the ERC-20 governance token on Ethereum for Index Coop. INDEX empowers its holders to participate in decision-making processes that shape the future of Index Coop.
Yes, all Index Coop products are instantly redeemable for their underlying value at all times.
Yes, all Index Coop smart contracts have been audited by leading independent security firms such as OpenZeppelin, ABDK, Isosiro, & more. There is also an active bug bounty program through ImmuneFi. Audit information is published in the docs here.
Costs and fees vary by product, but typically most products can include some combination of the following: