SKY

Sky Savings USDS

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

$6.58b+29.36%

APY

3.88%-3%

BB+Rated Protocol

Updated Mar 9, 2026

Risk Rating

BB+

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This rating is based solely on publicly available information. 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.

SCS: Smart Contract Security

KMP: Key Management Permissions

M: Market

L: Liquidity

C: Collateral

PM: Protocol Mechanics

ICE: Infra Counterparty Exposures

PCE: Protocol Counterparty Exposures

G: Governance

FR: Financial Resilience

TLC: Team Legal Compliance

DT: Documentation Transparency

Potential Score

Provider risk assessed across Business, Operations, Reliability, and Security.

View the detailed scoring breakdown

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Contract Addresses

VaultContract

0xa393...7fbd

USDS Token

0xdc03...384f

GSM (Governance Security Module)

0x9ef0...8b90

Key Strengths

Longest continuously operating DeFi protocol with over 8 years of proven resilience through major crypto crises without losses to savings depositors
Immutable sUSDS contract with no admin keys, no pause function, and permissionless withdrawals - no single entity can access or block user deposits
One of the longest governance timelocks in DeFi at 48 hours with Emergency Shutdown Module requiring significant MKR stake as ultimate circuit breaker
Extensive audit coverage from top-tier firms across multiple years with active bug bounty program offering substantial rewards
Organic yield from overcollateralized lending and high-quality RWA investments with no token emission dependency
Near-perfect Strategy score with instant withdrawal, no lockup, no queue, and clean track record

Key Risks

Governance voting power concentration among top MKR holders that could influence protocol decisions despite timelock protections
Material revenue dependency on off-chain RWA investments introducing counterparty risk even though assets are high-quality
Surplus 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"
Missing documentation for monitoring systems, incident response procedures, and on-call protocols despite demonstrated crisis response capability
Rebranding complexity with parallel token systems creating potential user confusion across documentation sources