USDS

USDS is the dollar stablecoin launched after MakerDAO, the long-established decentralized stablecoin project on Ethereum, was restructured under the name Sky in 2024. Positioned as an upgraded version of DAI, USDS is available to DAI holders through a one-to-one migration; the two tokens have been circulating side by side for some time.

USDS is backed by collateral made up of crypto assets deposited by users and the protocol, as well as real-world assets such as tokenized government bonds. Those who deposit USDS into the protocol through the Sky Savings Rate can earn yield; this rate is set by governance decisions. Besides Ethereum, the token is also available on networks such as Base, Arbitrum and Solana. The ecosystem's governance token is SKY.

As a crypto-backed stablecoin, USDS seeks to maintain its dollar peg through collateral adequacy and liquidation mechanisms; this is a design goal. On Lzzo.com, the USDS value is shown by converting the Binance USDS/USDT pair to US dollars using Coinbase's USDT/USD observation. Conversion between DAI and USDS can be made in both directions through the protocol's official interfaces.