USDS by Sky (formerly MakerDAO): status and timeline

USDS

USDS is the upgraded Sky stablecoin, launched August 2024. Backed by the same collateral as DAI, convertible 1:1. sUSDS earns yield from protocol revenue.

ScalingStage 5 of 5

Live on Ethereum, Base, Solana, EVM L2s. $7.6B USDS supply. sUSDS yields approximately 3.6% APY.

Updated Aug 2026Checked 10 Oct0 updates this week

Milestones

Next · sUSDS integrated into Spark Liquidity Layer

USDS launches with Sky rebrand27 Aug 2024Complete.
Upgrade Hub enables 1:1 DAI ↔ USDS swapsAug 2024Complete.
Binance auto-converts user DAI to USDS7 Apr 2026Complete.
Coinbase converts user DAI to USDSMay 2026Complete.
USDS live on Solana via Wormhole19 Nov 2024Complete.
sUSDS integrated into Spark Liquidity LayerTarget Jan 2026Current milestone.

Most important updates

Upcoming

Jan 2026sUSDS integrated into Spark Liquidity Layer (next)
Q4 2026Expansion to additional EVM chains planned for late 2026

Current obstacles

DAI and USDS coexistenceManaging two live stablecoins creates liquidity fragmentation. Exchanges and wallets must support both to simplify user conversion.
Regulatory riskProposed US stablecoin legislation could require reserve backing, capitalization, or issuer licensing—none of which apply to fully decentralized protocols.

Physics limits

Collateral volatility requires overcollateralizationBecause collateral (ETH, BTC) can drop 30–50% in a week, vaults must hold 1.5–2x backing. This inefficiency increases the capital cost for minting.
Governance complexity scales with parametersAs more collateral types, stability fees, and risk models are added, SKY governance voting becomes more complex and harder for the community to evaluate.

How it works

3 parts

Collateral

Overcollateralized vaults

Users deposit ETH, stETH, or WBTC to mint USDS. A 150% collateral ratio is maintained by liquidation auctions if value falls.

Upgrade Hub

1:1 DAI-to-USDS swap

A smart contract lets users swap DAI and USDS at 1:1 with no fee. This allows gradual migration without breaking existing DAI positions.

Savings Rate

sUSDS yield generation

USDS holders lock it as sUSDS to stake. Yield comes from stability fees on vault debt and liquidation surplus, distributed daily.

Spec sheet

Spec	USDS
Total supply (Oct 2026)	$7.6B+^R (reported)
DAI supply (Oct 2026)	$4.8B^R (reported)
Sky Savings Rate (sUSDS APY, Oct 2026)	~3.6%^R (reported)
Market rank by stablecoin supply	#3 (behind USDT and USDC)^R (reported)

^R reported by the company

Update log

4 updates

About Sky (formerly MakerDAO)

The team behind USDS

Sky (formerly MakerDAO)

USDS, DAI, decentralized stablecoin, DeFi protocol

Sky is a decentralized protocol issuing USDS and DAI stablecoins. MakerDAO rebranded to Sky in August 2024, launching USDS as an upgraded token with a savings rate. Combined USDS and DAI supply totals $10.13 billion as of October 2026, making Sky the third-largest stablecoin issuer.

DAI pioneered vault-backed stablecoins in 2017. Sky rebranded from MakerDAO in 2024.
USDS is convertible 1:1 with DAI and earns approximately 3.6% APY via sUSDS staking as of October 2026.
Combined USDS/DAI supply: $10.13B as of October 2026. Third-largest stablecoin after Tether and Circle.

sky.money (opens sky.money)Company profile →

Founded: 201511 yrs
Headquarters: Cayman Islands
Status: Public
Valuation: public
Raised: $11 round
Last round: Token sale · $12017
Works in: CryptoStablecoins & tokenization
Coverage: 2 programs · 4 updateslatest 1 Aug 2026checked 10 Oct
Partners: Aave (opens aave.com)Curve Finance (opens curve.fi)Binance (opens binance.com)Coinbase (opens coinbase.com)
People: Rune Christensen (opens twitter.com)Co-founder

Spec

USDS

Total supply (Oct 2026)

$7.6B+^R (reported)

DAI supply (Oct 2026)

$4.8B^R (reported)

Sky Savings Rate (sUSDS APY, Oct 2026)

~3.6%^R (reported)

Market rank by stablecoin supply

#3 (behind USDT and USDC)^R (reported)

USDS

Milestones

Most important updates

Upcoming

Current obstacles

Physics limits

How it works

Overcollateralized vaults

1:1 DAI-to-USDS swap

sUSDS yield generation

Spec sheet

Update log

Aug 2026

May 2026

Tue 7 Apr

Tue 27 Aug 2024

About Sky (formerly MakerDAO)

Current obstacles

Physics limits

How it works

Overcollateralized vaults

1:1 DAI-to-USDS swap

sUSDS yield generation

Spec sheet

Update log

Aug 2026

May 2026

Tue 7 Apr

Tue 27 Aug 2024

About Sky (formerly MakerDAO)