What is sUSDS and how does it work? sUSDS (Savings USDS) is an evolved version of the yield-generating stablecoin, designed to rival sDAI and facilitate mass adoption. It generates interest automatically, simply by holding it. When you deposit your USDS on Sky , the protocol provides you with the equivalent in sUSDS. The value of these sUSDS increases progressively according to the platform's interest rate.
Where does the yield come from? The sUSDS yield is based on an evolution of the Dai Savings Rate (DSR), adapted to the new stablecoin and renamed Sky Savings Rate (SSR). Here are the main sources:
Lending stability fee: USDS borrowers via Sky pay a fee that feeds into the USDS pool and is redistributed according to your participation (SSR).Liquidations: Under-collateralised USDS loans are liquidated, generating fees that increase the return to sUSDS holders.Real-World Assets: Sky invests in real-world assets, including government bonds and high-yield debt, creating a stable base to fund SSR.Reducing token incentives: Unlike platforms that artificially inflate returns with native tokens, Sky prioritises organic revenues for sustainable returns.Practical example: A deposit of 1,000 USDS in sUSDS, with an SSR of 8.5%, yields 1,085 USDS after one year, without any intervention.
What are the differences between sDAI and sUSDS? Although both are yield-generating stablecoins created by Sky (formerly MakerDAO), they have some important differences:
Yield : sUSDS generally offers a higher rate (SSR) than sDAI's DSR, thanks to greater exposure to real assets and more dynamic management.Income structure : sUSDS relies more heavily on real asset income than sDAI, making it more resilient to crypto fluctuations.Adoption and strategy : The newer sUSDS represents Sky's strategic evolution with optimised mechanisms and increased flexibility to adapt to future regulations.Focus on sustainability : The sUSDS prioritises organic yields without direct subsidies, unlike the sDAI which is partially dependent on incentives in DAI.Practical uses of the sUSDS in DeFi The sUSDS fits into the DeFi ecosystem but, being recent, its uses remain limited. Passive saving is the simplest solution: your funds generate automatic returns in your portfolio. You can exchange your valued sUSDS for USDS directly on Sky .
Passive saving: Generate automatic returns by simply holding your funds.Future use as collateral: The integration of sUSDS as collateral on platforms such as Aave is planned in time. For now, focus on passive savings.Liquidity provision: Options are limited but will grow with adoption. Currently, the Curve DOLA-sUSDS pool offers the best liquidity.Exchanging cryptos: Odos sUSDS-USDS conversions on Sky direct exchanges on Sky Advantages and disadvantages of sUSDS Advantages Improved passive performance : SSR generally outperforms DSR thanks to a hybrid DeFi/TradFi strategy.Reliability : Sky benefits from MakerDAO's expertise and audited smart contracts.Accessibility : Wide compatibility with DeFi applications.Flexibility : No lock-in period for returns.Disadvantages Variable returns : SSR evolves according to governance decisions.Increased competition : The proliferation of stablecoins with yields limits the liquidity of the sUSDS.Dependence on peg : The stability of the sUSDS depends on that of the USDS.What are the risks associated with the sUSDS? Return variability risk: The SSR fluctuates according to market conditions.Depeg risk: The USDS could lose parity with the dollar in the event of extreme stress.Smart contract risk: Despite audits, no DeFi protocol is completely safe.Liquidity risk: A drop in attractiveness could affect large exchanges, but sUSDS-USDS conversion remains guaranteed on Sky.Exposure to regulations: USDS may be modified to adapt to future regulations.How to get started with sUSDS Buy USDS: Via Sky or Uniswap.Convert to sUSDS: Use Spark or Sky.Manage your sUSDS Simple option : Keep for passive savings.Advanced option : Explore DeFi via liquidity pools or collateral (on Morpho ). USDS offers more options on Ethereum and Solana, including via Kamino or AAVE .Conclusion
USDS represents a major innovation for maximising passive returns while taking advantage of Sky's simplicity. With its diverse potential for use and attractive returns, it is positioned as a compelling alternative to existing stablecoins for savings.
This analysis is not investment advice. It has been prepared without taking into account your personal situation, particularly your financial situation, risk profile, and investment objectives.
