USDS is the primary stablecoin of Sky Protocol (the rebrand of MakerDAO), functioning as a USD-pegged decentralized stablecoin backed by an over-collateralized multi-asset vault system — the same proven mechanism underlying DAI — with the addition of native yield rewards for holders who opt in to Sky’s savings module.
| Stat | Value |
|---|---|
| Ticker | USDS |
| Price | $1.00 |
| Market Cap | $11.35B |
| 24h Change | +0.0% |
| Circulating Supply | 11.35B USDS |
| All-Time High | $1.15 |
| Contract (Ethereum) | 0xdc03...384f |
| Contract (Base) | 0x820c...21dc |
| Contract (Arbitrum One) | 0x6491...876b |
| Contract (Solana) | USDSwr...TwcA |
How It Works
- Vault collateralization — Users deposit approved collateral (ETH, WBTC, RWAs, and other assets) into Sky Protocol vaults.
- USDS minting — USDS is generated against the deposited collateral, maintaining the over-collateralization model inherited from DAI (minimum collateralization ratios vary per collateral type).
- DAI upgrade path — Existing DAI holders can upgrade 1:1 to USDS via the Sky exchange module. The conversion is reversible.
- Sky Savings Rate (SSR) — Users who deposit USDS into the Sky Savings module earn yield derived from protocol revenue (stability fees, RWA yields). This is Sky’s equivalent of the DSR (DAI Savings Rate).
- Governance by SKY token — SKY (formerly MKR) token holders govern protocol parameters including collateral types, stability fees, and risk parameters.
Tokenomics
| Parameter | Value |
|---|---|
| Ticker | USDS |
| Peg | 1:1 USD |
| Predecessor | DAI (1:1 upgradeable) |
| Collateral | ETH, WBTC, RWAs, stablecoins, and others |
| Savings rate | Sky Savings Rate (SSR) — variable |
| Launch | August 26, 2024 |
| Governance | SKY token (formerly MKR) |
Use Cases
- Decentralized borrowing — Mint USDS by depositing collateral into Sky vaults.
- Yield generation — Hold USDS in the Sky Savings module to earn the Sky Savings Rate.
- DAI migration — DAI holders can upgrade to USDS 1:1 as the ecosystem transitions.
- DeFi collateral — USDS is being integrated into Curve, Aave, and other protocols as DAI liquidity migrates.
History
- 2014–2017 — MakerDAO conceptualized and built. DAI, the predecessor stablecoin, launches in December 2017.
- 2024-08-26 — MakerDAO rebrands as Sky Protocol. DAI transitions to USDS as the primary stablecoin. MKR token begins transitioning to SKY at 1:24,000 ratio. The old “Maker” branding is retired.
- 2024 Q4 — USDS integrations roll out across major DeFi protocols. Curve launches USDS pools. Sky Savings Rate is set by SKY governance.
- 2025 — USDS supply grows. DAI supply begins to decline as users upgrade. Both DAI and USDS remain interoperable 1:1.
Common Misconceptions
“USDS replaced DAI — DAI no longer exists.”
DAI remains live and continues to function. USDS is an optional upgrade. The two coexist and are reversibly interchangeable 1:1 via the Sky upgrade module.
“USDS is a new stablecoin with no track record.”
USDS is directly backed by the same vault infrastructure and collateral system that has maintained DAI’s peg since 2017. The collateral model is not new.
“Sky Protocol is unrelated to MakerDAO.”
Sky Protocol is the official rebrand of MakerDAO. The core contracts, collateral vaults, and governance history are continuous.
Social Media Sentiment
The MakerDAO-to-Sky rebrand has divided community opinion. Long-time MKR/DAI holders are skeptical of the rebrand and question the rationale. Newcomers appreciate the yield-sharing model. The decentralized and battle-tested collateral model earns broad DeFi trust. Criticism centers on the rebranding complexity rather than protocol fundamentals.
Last updated: 2026-04