--- title: "sUSDS (Sky Savings Rate) — Yield Mechanism, Risk, and Track Record" asset: sUSDS issuer: Sky Protocol (formerly MakerDAO) category: Yield-bearing stablecoin source: "WYCF Episode 01" presenter: "Piotr Saczuk, founder of Osero (independent agent in the Sky Protocol ecosystem)" data_partner: Stablewatch last_updated: 2026-06-25 url: https://wycf.show/episodes/susds-sky summary: > sUSDS is the largest yield-bearing stablecoin onchain, with approximately $6.5B TVL. It has paid roughly $240M in interest to holders since inception in September 2024. This document traces where the yield comes from, who bears the risk, what happens if collateral is compromised, and why allocators can assess its track record. key_metrics: tvl_usd: 6500000000 interest_paid_to_holders_usd: 240000000 inception: 2024-09 instant_liquidity_usd: 4000000000 liquidity_3_day_usd: 9000000000 risk_capital_buffer_usd: 180000000 credit_rating: "S&P Global rated (2025), first decentralized asset to receive one" --- # sUSDS (Sky Savings Rate): Where the Yield Comes From sUSDS is the largest yield-bearing stablecoin onchain. Approximately $6.5B in TVL. It has paid around $240M in interest to holders since inception in September 2024. It is the yield-bearing version of USDS, the primary stablecoin of the Sky Protocol (formerly MakerDAO). This document answers four questions an allocator needs before deploying capital: where the yield comes from, who bears the risk, what happens if collateral is compromised, and why the track record can be trusted. > Data presented in this document is sourced from WYCF Episode 01 with Piotr Saczuk (founder of Osero) and is verified by Stablewatch, WYCF's data partner. Figures should be confirmed live at the independent Sky Protocol dashboards before any allocation decision. --- ## 1. Where the yield comes from The flow of capital, traced end to end: 1. **User deposit.** A user deposits capital into the PSM (Peg Stability Module), a smart contract that maintains part of Sky Protocol liquidity. Capital comes in as USDC or USDS. The PSM swaps 1-to-1 with no slippage between the two. The PSM converts this capital into sUSDS, the yield-bearing version. 2. **Capital reaches the Sky Protocol.** A set of decentralized smart contracts governed by token holders. 3. **Loans to the agent network.** Sky Protocol lends this capital as USDS loans to a network of five independent agents: **Osero, Spark, Grove, Obelisk, and Kiln.** 4. **Agents allocate to yield venues.** Each agent allocates its loan into venues that pay interest. 5. **Interest flows back.** Venues pay interest to agents → agents pay borrowing cost (interest on the USDS loan) back to Sky Protocol → interest is accrued at the user level through the PSM. The sUSDS token accrues value automatically. The holder only needs to hold the asset. ### Collateral composition (where the underlying revenue is generated) | Allocation | Share | Underlying yield source | |---|---|---| | Stablecoins (mainly USDC) | 52% | Underlying T-bill yield | | Onchain lending | (blue-chip only) | Loans structured around BTC, ETH and their derivatives, via smart contracts | | OTC lending | (blue-chip only) | Same asset profile as onchain lending, but bound by legal agreements rather than smart contracts | | T-bills | 14.5% | Janus Henderson fund + BlackRock BUIDL | | Corporate debt (AAA) | 4.5% | Janus Henderson JAAA CLO fund + Securitize CLO fund | | Others | 2% | Private credit and basis trade | The yield is real-world and crypto-native lending revenue, not token emissions. The largest single source (52%) is the T-bill yield earned on stablecoin reserves. --- ## 2. Who bears the risk The risk framework is based on Basel III, the same regulatory framework used to assess bank solvency after the 2008 financial crisis, adapted to DeFi. Risk is split across parties in a loss waterfall. **sUSDS / USDS holders sit at the bottom and are the most protected party.** The loss waterfall, from first loss to last: 1. **Junior risk capital (agents).** The most junior tranche, held by the agents (Osero and the others). To borrow from Sky Protocol, an agent must post its own junior risk capital. This aligns incentives. Any first loss from misallocation is absorbed here. This tranche has nothing in common with sUSDS holders. 2. **Stability capital buffer (mezzanine, protocol level).** Only drawn if junior risk capital is exhausted. 3. **Senior risk capital (Sky Protocol).** Only hit if the two tranches above are exhausted. Combined, these tranches hold approximately **$180M of capital** at present. ### Extreme scenarios In normal circumstances, if the NAV of a position declines, the position is withdrawn and bad debt is covered by that. If that is not enough, in extreme scenarios there are two further backstops: 1. **Sky Backstop.** The SKY governance token is minted and sold to cover the remaining shortfall. 2. **USDS haircut.** As a last resort only, losses reach USDS holders. Holders are reached only at the very end, in an extreme event, after every other tranche and backstop is exhausted. --- ## 3. What happens if collateral is compromised (liquidity profile) The entire collateral composition is designed for short time-to-liquidity: - **More than $4B in instant liquidity.** - **Up to $9B can be liquidated within three days.** If stress begins, there is time to withdraw positions before losses cascade down the waterfall structure. All balance-sheet assets are short-duration and investment grade. The loss waterfall and balance sheet can be modeled directly on the independent Sky Protocol dashboards, allowing an allocator to simulate losses under different market conditions for any tranche or for the sUSDS holder position. --- ## 4. Why allocators can assess the track record ### History (more than a decade of iteration) | Year | Milestone | |---|---| | 2015 | Concept created by founder Rune Christensen ("eDollar"), before Ethereum mainnet was live. Maker token holders granted governance rights. | | 2017 | Dai launched: first over-collateralized decentralized stablecoin (CDP model). | | 2020 | Full decentralization. Maker Foundation dissolved; governance is the token holders. | | 2021 | First RWA onboarded to DeFi at scale, at MakerDAO. | | 2024 | MakerDAO rebrands to Sky. USDS is the main asset; sUSDS is its yield-bearing version. Dai remains live. | | 2025 | S&P Global issues an official credit rating for sUSDS, the first decentralized asset in history to receive one. | | Today | The agent network is live. Agents (Osero and others) source the best risk-adjusted yield for sUSDS holders. | ### Security - Dai was among the first protocol products to go through formal verification (what is now called a smart contract audit). - Over **30 public audit reports** are available on the Sky website, from auditors including **Cantina, Sherlock, ChainSecurity, and Trail of Bits.** - Three independent technical teams within the Sky Protocol monitor the infrastructure and run their own security processes. ### Transparency All data is publicly available and updated live on two independent dashboards within the Sky ecosystem: the loss waterfall, the balance sheet, revenue, and cash flows. ### Liquidity $4B available for instant withdrawals; $9B of the balance sheet withdrawable within three days. Assets are short-duration and investment grade. --- ## Summary for allocators | Question | Answer | |---|---| | Where does the yield come from? | Real-world and crypto-native lending revenue. 52% from T-bill yield on stablecoin reserves; the rest from onchain/OTC lending on blue-chips, T-bills (Janus Henderson, BlackRock BUIDL), AAA corporate debt, and a small private credit/basis trade allocation. Not token emissions. | | Who bears the risk? | A Basel III-based loss waterfall. Agents' junior risk capital absorbs first loss, then the protocol's stability buffer and senior capital (~$180M combined), then SKY mint and USDS haircut as final backstops. Holders are last and most protected. | | What if collateral is compromised? | $4B instant liquidity, $9B liquidatable within three days. Short-duration, investment-grade assets. Time to withdraw before losses cascade. | | Why trust the track record? | A decade of iteration (2015–today), 30+ public audits (Cantina, Sherlock, ChainSecurity, Trail of Bits), first decentralized asset with an S&P Global credit rating (2025), live public dashboards. | --- *Source: WYCF Episode 01, "sUSDS," presented by Piotr Saczuk (Osero). Data verified by Stablewatch. Full episode: https://wycf.show/episodes/susds-sky* *WYCF is new media for onchain yield. One yield product per episode, explained end to end.*