As of this week, Sky, the decentralized finance (defi) initiative previously recognized as Makerdao, has witnessed its newly launched stablecoin, USDS, cross the $2 billion threshold. Among the top ten stablecoins, it saw the largest supply expansion last month.
Sky’s USDS climbs into the top five while DAI holds firm
Sky’s stablecoin, USDS, has recorded a 99% growth in supply over the past 30 days, according to stablecoin statistics from defillama.com. As a relative newcomer to the stablecoin market, USDS operates alongside DAI and uses an exchange rate of 1:1.
Data from Sky’s website indicates that there are currently 2.02 billion USDS in circulation, of which 1.23 billion comes from DAI swap upgrades. Despite the rapid expansion of USDS, DAI also saw growth last month, with supply increasing 4.49% to 4.719 billion coins, as noted by defillama.com.
Source: Sky website.
DAI is accessible across a much wider range of blockchains, while USDS is currently deployed on Ethereum, Base and Solana. Measured by market capitalization, USDS has now claimed fifth place, just below DAI, which ranks fourth.
Source: Sky website.
A key difference between the two is that USDS holders can earn an annual rate of return (APY) on their holdings. As of now, Sky’s website is advertising an APY of 12.50% for USDS.
However, the platform includes a disclaimer highlighting that the Sky Savings Rate (SSR) is variable, managed by Sky Ecosystem’s decentralized onchain management, and configured on the Ethereum blockchain. Together, the circulating stocks of DAI and USDS represent a combined value of $6.83 billion.
Sky as a whole reports a total value (TVL) of approximately $14.5 billion as of January 18, 2025. Elsewhere in the stablecoin sector, other tokens such as the usual usd (USD0), Ethena’s USDE and USDX Money’s USDX continue to make progress as they reach their expand presence. With Sky’s stablecoin USDS gaining notable prominence within the defi sector, its growing value signals a strengthening position.
