On October 08, Sky, the leading decentralized stablecoin protocol powering a new generation of tokens, has today announced the launch of stUSDS, the first risk capital token in the Sky ecosystem. Marking a significant expansion of Sky’s platform, stUSDS generates new avenues for value creation, targeting expert investors, including advanced DeFi users, institutions, automated treasuries, and fund managers. stUSDS is available on Sky.money and Spark.fi.
Built for expert DeFi users, stUSDS is structured to absorb a greater share of system risk in exchange for the potential to capture a larger portion of protocol rewards. By deriving yield from the stability fee that Staking Engine users pay for borrowing USDS against their SKY, the risk token funds liquidity for SKY stakers and encourages participation in SKY governance.
“Sky is bringing maximum effectiveness and efficiency to capital formation,” Rune Christensen, co-founder of Sky, said, “Sky paved the way for yield generation in a stable environment, and now, backed by growing ecosystem momentum, we will forge a new path to value creation with stUSDS, attracting a growing cohort of users motivated by accessing the best possible returns on their investment.”
The longest-standing DeFi protocol, Sky (formerly MakerDAO), has continued to grow since the launch of USDS, the upgraded version of DAI, last year. Available across multiple chains, including Ethereum, Solana, Base, Arbitrum, Optimism, and Unichain, USDS, along with DAI, is the largest circulating decentralized stablecoin, surpassing 7 billion in supply and reaching 29% year-on-year growth.
In addition to the launch of stUSDS, Sky is allocating capital more efficiently through Stars – autonomous and independent decentralized projects within the Sky ecosystem, including Spark, Grove, and Keel. Spark, the first Star, allocates Sky stablecoin reserves to provide liquidity across DeFi through SparkLend, its lending protocol, which has grown to over $11 billion Total Volume Locked (TVL). Grove, the Institutional Grade Credit engine, emerged from stealth this year with a $1 billion location from the Sky ecosystem. Now, with the recent launch of Keel, the on-chain capital allocator bringing up to $2.5 billion in capital to the Solana ecosystem, Sky will continue to drive DeFi liquidity and innovation at scale.
Rune Christensen added, “Sky’s expansion has proven DeFi’s ability to offer greater returns to users and move capital more efficiently than legacy systems. Over the course of nearly a decade in this space, Sky has built a springboard for innovation in finance. Reinforced by our core primitives, the launch of stUSDS will create value with peak performance, well-defined safety, and scale.”
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