Issuer explainer

What Is USDS?

USDS is the upgraded decentralized stablecoin from Sky, the protocol formerly known as MakerDAO. Here is how it works and how it is collateralized, with live market data.

USDS is a decentralized U.S. dollar stablecoin launched in 2024 by Sky, the protocol formerly known as MakerDAO. It is the upgraded successor to DAI and is designed to trade at one dollar.

Unlike fiat-backed coins held by a single issuer, USDS is governed by a decentralized protocol and over-collateralized by a mix of on-chain crypto assets and real-world assets. Holders can deposit into the Sky Savings Rate to receive sUSDS and earn yield.

How USDS is collateralized

USDS is minted against a basket of collateral managed by Sky governance, including crypto assets and tokenized real-world assets such as U.S. Treasuries. The system is over-collateralized, meaning more value backs the supply than is issued, with smart contracts enforcing the rules.

USDS and DAI

USDS is the successor to DAI under the Sky brand. DAI continues to exist, and users can upgrade DAI to USDS. The savings product sUSDS replaces the older DAI Savings Rate.

What USDS is used for

  • A decentralized dollar that is not controlled by a single issuer
  • Earning yield via sUSDS and the Sky Savings Rate
  • Collateral and liquidity across DeFi
  • On-chain settlement with 24/7 availability

Market data from CoinGecko, refreshed on each deploy. Editorial details per issuer disclosures. Not investment advice.

FAQ

USDS, answered

What is USDS?

USDS is a decentralized U.S. dollar stablecoin launched in 2024 by Sky, the protocol formerly known as MakerDAO. It is the upgraded successor to DAI, over-collateralized by on-chain and real-world assets and governed by a decentralized protocol.

What is the difference between USDS and DAI?

USDS is the rebranded, upgraded version of DAI under the Sky brand. DAI still exists and can be upgraded to USDS, and the sUSDS savings token replaces the older DAI Savings Rate.

How does USDS keep its peg?

USDS is over-collateralized: more value in crypto and tokenized real-world assets backs the supply than is issued, with smart contracts and Sky governance managing collateral and stability mechanisms.

Can you earn yield on USDS?

Yes. Depositing USDS into the Sky Savings Rate mints sUSDS, a token that accrues yield over time. See our stablecoin yield guide for context on rates and risks.