Savings USDS

by Sky (formerly Maker)

Current APY
3.65%
30d Avg APY
3.79%
90d Avg APY
3.80%
TVL
$5924.1M

What is sUSDS?

sUSDS is the yield-bearing version of USDS (formerly DAI), issued by Sky (formerly MakerDAO). By depositing USDS into the Sky Savings Rate contract, you receive sUSDS tokens that automatically accrue yield. sUSDS is the successor to sDAI and is part of Sky's rebranded ecosystem. It represents one of the most battle-tested yield-bearing stablecoins in DeFi, backed by the oldest and most proven stablecoin protocol.

How does sUSDS generate yield?

The yield comes from the Sky Savings Rate (SSR), which is funded by revenue generated across the entire Maker/Sky protocol. This includes interest from overcollateralized crypto loans (ETH, WBTC, and other collateral types), yield from Real World Assets (RWAs) including US Treasury bills, and revenue from PSM (Peg Stability Module) operations. The SSR is set by Sky governance through MKR/SKY token holder votes, and it represents the protocol's primary mechanism for managing USDS supply and demand.

Who issues USDS and sUSDS?

USDS is issued by the Sky protocol (rebranded from MakerDAO in 2024). MakerDAO launched in 2017 and is one of the oldest and most established DeFi protocols. The protocol is governed by MKR/SKY token holders who vote on risk parameters, collateral types, and the savings rate. With billions in TVL and years of operation through multiple market cycles, Sky/Maker is widely considered the most battle-tested lending protocol in DeFi.

Risk profile

sUSDS is generally considered one of the lower-risk yield-bearing stablecoins due to the maturity and scale of the underlying protocol. Risks include smart contract risk (though the contracts have been live for years with multiple audits), governance risk (the SSR can be changed by a vote), and collateral risk (if a significant portion of collateral were to fail simultaneously). The inclusion of RWAs introduces some centralization risk but also diversifies the revenue base. USDS/DAI has maintained an excellent peg history through major market events including the 2022 bear market.

Peg and redemption

sUSDS can be redeemed for USDS at any time with no lock-up period or withdrawal cooldown. The exchange rate only goes up, reflecting accumulated yield. USDS maintains its peg through the PSM module, which allows 1:1 swaps between USDS and other approved stablecoins (like USDC). This mechanism has proven highly effective at maintaining peg stability. sUSDS is also widely liquid on DEXs for instant swaps.

Key Risk Factors

  • Smart contract risk in the Sky/Maker protocol
  • USDS depeg risk, though USDS (formerly DAI) has an excellent peg track record
  • Yield variability, the Sky Savings Rate is set by governance
  • Governance risk, rate changes depend on MKR/SKY token holder votes

How to Get sUSDS

  • Sky app (sky.money), instant withdrawal
  • Secondary market swaps on DEXs
  • Stable Yields interface (0.1% Enso routing fee)

Details

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