USDS (USDS)

The asset is supported by the Sky Protocol, which uses smart contracts, collateralized positions, and governance-controlled risk parameters to manage supply and stability. Users can acquire USDS through ecosystem tools and deploy it in DeFi activities such as lending, borrowing, liquidity provision, and payments. Its design reflects the Maker tradition of overcollateralized stablecoin issuance, while the Sky rebrand introduces a broader set of user-facing products and incentives.

One of the key features around USDS is the ability to convert it into sUSDS, a savings version that can accrue protocol-generated rewards through the Sky Savings Rate. Users may also interact with modules that distribute SKY, the ecosystem’s governance token, subject to protocol rules and availability. These mechanisms are intended to encourage participation and deepen liquidity around the stablecoin.

Sky also introduces “Stars,” semi-autonomous sub-ecosystems that can build specialized products on top of the protocol. These may target areas such as advanced lending markets, real-world asset exposure, or institution-focused credit. USDS is the stable value layer that links these components together, making it central to Sky’s effort to expand decentralized finance beyond simple crypto trading.