Sky Dollar (USDS)
Sky Dollar (USDS) is the flagship stablecoin of the Sky protocol, the rebranded and upgraded successor to MakerDAO. Unlike fiat-backed tokens, USDS is issued against on-chain and tokenized collateral through a decentralized, overcollateralized system governed by the Sky community. Our data shows a market capitalization of about $6.62B across 7 chains, and it ranks 4th of 15 in our stablecoin ratings with a best score of 8.38.
Is USDS holding its dollar peg?
At our latest measurement, USDS showed a peg deviation of 0.00% — sitting right at $1. USDS inherits the stability mechanisms refined over years by MakerDAO, including overcollateralization and protocol-managed stability tools, which help keep it close to par.
What backs Sky Dollar?
USDS is collateralized rather than fiat-reserved. Its backing comes from a mix of crypto assets and real-world-asset exposure held within the Sky protocol, with the system designed to keep collateral value above the value of stablecoins issued. This is a fundamentally different trust model from USDC or USDT: instead of trusting a single company's bank reserves, you rely on smart-contract collateralization and decentralized governance. We measure peg behavior and reach; we do not audit the protocol's collateral composition.
Trade-offs to weigh
- Smart-contract risk: Value depends on protocol code and liquidation mechanics working as intended.
- Collateral and RWA exposure: Some backing may include tokenized real-world assets, adding off-chain counterparty considerations.
- Governance risk: Parameters are set by token-holder governance, which can change collateral rules.
- No public status page: No dedicated incident page was found in our checks.
Yield and the wider Sky ecosystem
USDS sits at the center of the Sky ecosystem and is often paired with a protocol savings rate that lets holders earn on deposits, funded by revenue from the collateral engine. Our 8.38 composite rewards strong scale, a perfect measured peg, and broad reach, with points deducted only for the missing public status page.
Who is it for?
USDS appeals to DeFi users who want a dollar unit with a decentralized, overcollateralized heritage rather than a bank-held fiat model. It is less suited to users who specifically want simple, audited fiat reserves and single-issuer redemption. Understand the collateral model before relying on it.