Sky Dollar (USDS)

Our assessment

USDS has $6.69bn circulating across seven chains and traded at exactly 1.0000 at this check. It is the successor to Dai within the rebranded Sky ecosystem, running alongside it rather than replacing it outright.

A savings rate built into the stablecoin

USDS can be deposited to earn a governance-set savings rate funded from the protocol's revenue on its collateral. That makes the stablecoin itself yield-bearing rather than requiring a separate lending position — a significant convenience, and it means holders are exposed to the protocol's earning assets rather than merely to its peg.

Governance sets the rate, which means governance sets the risk

The savings rate is a policy decision, adjusted to manage demand and the protocol's balance sheet. It can be lowered. More importantly, sustaining an attractive rate requires collateral that earns — which pushes the protocol toward real-world assets and counterparty exposure that a purely crypto-backed design would avoid.

Two stablecoins from one system

Running Dai and USDS in parallel means shared collateral and shared governance across two tokens with different feature sets. Holders should understand which one they hold and what the conversion path is, because they are not interchangeable in every venue.

Who it suits

USDS fits users who want a decentralised stablecoin with built-in yield and are comfortable with the collateral mix. Users wanting the longest track record should hold Dai; those wanting regulated fiat backing, USDC.