what's sUSDS?
sUSDS is a yield-bearing token within the Sky Protocol, a decentralized finance platform focused on stablecoin issuance and savings mechanisms. It represents a user's position in the Sky Savings Rate (SSR) module, where holders supply the USDS stablecoin to earn dynamic yields generated from protocol revenues and investments. This token automates the accrual of savings without requiring active management, enhancing capital efficiency in DeFi. The mechanics involve depositing USDS into a non-custodial smart contract pool, receiving sUSDS in return. As the SSR adjusts based on market conditions and protocol performance, additional USDS tokens are minted and distributed proportionally to sUSDS holders, increasing the token's redeemable value over time. Users can redeem sUSDS for the underlying USDS plus accrued yield at any point, promoting liquidity and stability. Built on Ethereum and compatible chains, sUSDS integrates with broader DeFi ecosystems, allowing seamless use in lending, trading, and composability while maintaining peg to the USDS stablecoin. It embodies Sky's evolution toward user-centric stablecoin tools, emphasizing security through audited contracts and decentralized governance.
sUSDS listed as collateral in Gauntlet USDC Prime Vaults on Morpho.
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Listed as a collateral asset in Gauntlet USDC Prime Vaults on Morpho alongside WBTC, cbBTC, WETH, wstETH, and cbETH.
Spark Protocol's liquidity pool on Arbitrum depleted its sUSDS inventory available for purchase.
Weekly transfer count increases by 200% during the second half of the year.
sUSDS currently yields 4.25%, while over $50m was extracted from the Sky project to fund foundations with no obligations to tokenholders.
The one-month streak of inflows into sUSDS ends this week.
Sky Ecosystem diversifies sUSDS yield sources beyond T-Bills through allocations to Centrifuge credit products like JAAA via Grove Finance, its RWA-focused Star.
sUSDS reaches a new all-time high total value of $4.19 billion, $600 million above the previous record.
Total yield paid out by sUSDS reaches $164.93M.
The new USDS/stUSDS Curve pool deploys with 500,000 USDS incentives over three months, while the old sUSDS/stUSDS pool transitions to providing boosted rewards on top of stUSDS.
The recently launched sUSDS/stUSDS Curve pool has a configuration error preventing proper liquidity provision and now operates as an unintended stUSDS farm offering 55% yield. A new properly configured Curve USDS/stUSDS pool with ERC4626 support will be deployed to fix the issue.
The Curve Finance sUSDS/stUSDS pool launches with 500,000 USDS in incentives for liquidity providers over the next three months.
A Curve liquidity pool pairing stUSDS and sUSDS goes live, providing an exit mechanism for stUSDS holders to trade at discounted prices with warnings about limited recourse and holder rights.
sUSDS/USD price feed goes live on Monad's permissionless, real-time oracle infrastructure alongside other major crypto assets.
USDS ranks as the 3rd largest stablecoin by market cap.
sUSDS market cap grows +99.2% over the past 90 days on Ethereum, making it the fastest growing product for Sky Ecosystem.
Forbes publishes article on Obex Incubator, which provides traditional finance institutions access to Sky liquidity and sUSDS risk-adjusted returns.
Arbitrum's Drip Epoch 6 goes live with sUSDS accepted as collateral in the lending market, backed by deep liquidity and active use across Drip Season 1 lending protocols.
yvUSDS vault built on sUSDS delivers over 6% yield for trailing 30 days, and a partner program with fee splitting launches soon.
USDS is the only stablecoin with consistent positive inflows for the past three weeks at 4.25% yield, supported by Spark V2's savings launch.
USDS represents 61.7% of Sky Ecosystem's three products (USDS, sUSDS, stUSDS), with the yield-bearing versions combining for the remaining 38.3%.
Q3 2025 financials show $29.1m quarterly loss and reduced yields paid on sUSDS to cut expenses, while insiders extracted $150m through foundation transfers and outstanding loans against SKY with no repayments occurring yet.
sUSDS supply increases by $1.5B while competitor sUSDe supply decreases by $1B.
Olympus treasury farms sUSDS at 4.75% to fund OHM buybacks through its Yield Repurchase Facility, and a proposal exists to explore higher yield sources that would increase OHM buybacks by nearly 50% per year.
Holders with sUSDS balances over $1M are up ~100% since the start of the year.
Daily transfer counts for USDS and sUSDS increase by approximately 10x and 20x respectively since the start of the year.
sUSDS holder count reaches approximately 4.9k with 400% year-to-date growth as users convert USDS to earn the Sky Ecosystem Savings Rate.
The special vault for lending against SKY has its yield manually adjusted down from 20% to 10% over the last three days, with institutional lender Fasanara identified as the top lender in this market.
sUSDS reaches $2.39B market cap with $78M lifetime yield payout, controlling 77% of yield-bearing stablecoin liquidity alongside SUSDE.
New fixed-rate borrowing feature launches with rates as low as 0.9% APR, demonstrated by $150k whale loan against 500k collateral.
Large whale consistently moves $150M daily in deposits and withdrawals over past 100 days, indicating systematic trading pattern.
New yield farming opportunity available on Arbitrum offering 44.2% max leverage APY through sUSDS collateral with 14x multiplier.
New sUSDS/USDT trading pair launches on Curve Finance, expanding protocol liquidity on Ethereum mainnet.