Sky protocol pays yield to users who deposit USDS into the Sky Savings Rate (SSR) module. SSR yield is funded by the Sky protocol's excess reserves, generated by fees paid by overcollateralized borrowers on Sky who borrow through collateralized debt positions (CDPs).
AUM
$6b
Net APY
3.61%
Active Users
6k
Type
Vault
Network
Ethereum
BB+
Elevated RiskCeiling AA-
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CurrentPotential
This rating is based solely on publicly available information. DeFi protocol risk assessed across Security, Strategy and Operations on the AAA–D scale. The range from BB+ to AA- reflects the gap between the current assessment and the potential rating achievable if all identified improvement areas are addressed.
SCSSmart Contract Security88
KMPKey Management Permissions89
MMarket87
LLiquidity100
CCollateral100
PMProtocol Mechanics100
ICEInfra Counterparty Exposures100
PCEProtocol Counterparty Exposures87
GGovernance78
FRFinancial Resilience73
TLCTeam Legal Compliance91
DTDocumentation Transparency100
Performance
Assets Under Management · 30D▼ 3.51%
$6b
Over the last 30 days, the total value of Sky Savings USDS has dropped 3.51% with $214.34M in outflows.
Net APY · 30D▼ 1.10%
3.61%
Over the last 30 days, the APY has decreased from 3.65% to 3.61%.
Active Users · 30D▲ 0.51%
6k
Over the last 30 days, active users have increased by 0.51%, reaching 6.5K wallets.
Market Details
Component Ratings
Contract Addresses
Smart Contract0xa393...c27fbd
USDS Token0xdc03...07384f
GSM (Governance Security Module)0x9ef0...108b90
Key Strengths
S1Longest continuously operating DeFi protocol with over 8 years of proven resilience through major crypto crises without losses to savings depositors
S2Immutable sUSDS contract with no admin keys, no pause function, and permissionless withdrawals - no single entity can access or block user deposits
S3One of the longest governance timelocks in DeFi at 48 hours with Emergency Shutdown Module requiring significant MKR stake as ultimate circuit breaker
S4Extensive audit coverage from top-tier firms across multiple years with active bug bounty program offering substantial rewards
Key Risks
R1Governance voting power concentration among top MKR holders that could influence protocol decisions despite timelock protections
R2Material revenue dependency on off-chain RWA investments introducing counterparty risk even though assets are high-quality
R3Surplus Buffer (~$16.5-20M) not ring-fenced for sUSDS depositors with S&P assessing just 0.4% capital ratio and characterizing the limited buffer as a "noteworthy weakness"
R4Missing documentation for monitoring systems, incident response procedures, and on-call protocols despite demonstrated crisis response capability
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