USDS (Sky) at a glance: 8.25/10 in July 2026
USDS (Sky) is a stablecoin issued by Sky Protocol (MakerDAO successor), pegged to the US dollar via overcollateralized crypto + rwa. On our six-criterion composite for stablecoins, it ranks below USD Coin (USDC) while sitting above DAI and Tether (USDT) in our current composite.
Stablecoin scoring weights collateral quality, transparency, and depeg history heavily — combined they represent 55% of the composite. For any stablecoin holding meaningful capital, these are the questions that determine tail risk.
Transparency and audit posture
Sky is MakerDAO's rebranded successor. Same on-chain transparency model as DAI — vaults and collateral fully public. Yield-bearing variant sUSDS available.
Transparency is the single strongest predictor of stablecoin trust. Public quarterly audits by Big Four accounting firms (or better, full SEC filings from publicly-listed issuers) rank highest. Attestations are lower-tier but still meaningful. Opaque or infrequent disclosure is a persistent risk flag.
Regulatory posture
Decentralized issuer. Same regulatory posture as DAI — no central entity to regulate, but RWA touch.
Regulatory registration matters both for user access (can you legally hold this stablecoin in your jurisdiction?) and for issuer resilience (can the issuer survive a hostile regulatory action?). MiCA compliance is the current baseline for EU access; NYDFS oversight is the strongest US signal.
Collateral quality
Same collateral base as DAI. Mixed crypto + RWA + USDC.
Collateral composition determines what happens if the issuer needs to redeem all stablecoins at once. Pure cash + short-duration US Treasuries is highest-quality — instantly liquid, minimal duration risk. Commercial paper, secured loans, or crypto-backed collateral carry additional risk that only matters until it does.
Peg stability history
Launched 2024 as a MakerDAO rebrand. No material depeg events. Inherits DAI's operational track record.
Depeg events are the most-visible stablecoin failure mode. A stablecoin that has held peg through multiple stress events (Terra collapse 2022, SVB crisis 2023) has meaningfully demonstrated its design vs one that has not been stress-tested.
Supply scale and adoption
Circulating supply of $6.68B — well-established stablecoin with meaningful market presence. Top-3 stablecoin by supply — used as base currency across virtually every CEX and DEX.
Larger supply usually correlates with better acceptance across trading venues and DeFi protocols. But it also concentrates issuer risk — a failure of a top-3 stablecoin would create systemic pressure across all of crypto.
Who USDS (Sky) is for — and who should look elsewhere
Best fit: Users seeking a middle-ground between purely-fiat-backed stablecoins and higher-yield alternatives.
Look elsewhere if: USDS (Sky) is less suitable for users whose primary priority is regulation.
Direct alternatives worth comparing: USD Coin (USDC) score higher on our composite. See Best Stablecoins.
