sUSDS is the yield-bearing receipt token that holders receive when they deposit USDS into the Sky Savings Rate (SSR), the onchain savings module run by Sky, the protocol formerly known as MakerDAO. The SSR pays a variable rate set by Sky governance, accrued every block, and redeemable back to USDS at any time. As of Q1 2026, USDS has a circulating supply of $8.7B, making it the third-largest stablecoin tracked by DeFiLlama after USDT and USDC.
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sUSDS is an ERC-4626 vault share token issued by the Sky Savings Rate contract on Ethereum. Depositing 1 USDS mints sUSDS at the current exchange rate; the rate ratchets upward each block as savings interest accrues. Holders redeem sUSDS for USDS plus accrued yield. The token is transferable, composable in DeFi, and never rebases.
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The mechanism is the same one MakerDAO used for sDAI under the DAI Savings Rate. Sky kept the engineering and renamed the wrapper. Each sUSDS represents a pro-rata claim on the savings pool, which is funded by stability fees from Sky's onchain lending markets and by yield on its real-world-asset allocations.
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The Sky Savings Rate is a single contract that accepts USDS deposits and pays interest from Sky's protocol surplus. Governance sets the rate (currently a single number expressed as APY) by passing an executive vote. Interest accrues per block via a `chi` accumulator, the same `pot.dsr` model that powered the DAI Savings Rate before the September 2024 rebrand.
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Where does the yield come from? Three sources, blended:

Sky's governance forum publishes the rate-change rationale before each executive vote. The current SSR APY is published live at sky.money — always quote the live figure, not a screenshot.
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sUSDS and sDAI use identical math, but they wrap different stablecoins and live under a different brand. sDAI wraps DAI in the original DAI Savings Rate (DSR). sUSDS wraps USDS in the Sky Savings Rate (SSR). Both are ERC-4626 vault tokens. Sky's roadmap pushes new yield to the SSR while the DSR stays operational for DAI holders who choose not to convert.
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Sky launched USDS in September 2024 as part of the MakerDAO-to-Sky rebrand, alongside the new SKY governance token (replacing MKR at a 1:24,000 ratio). DAI was not deprecated — Sky maintains a 1:1 USDS↔DAI converter contract, so DAI remains live with $4.6B supply per DeFiLlama. Holders pick the wrapper that matches their preferred brand and the rate posted at the time. SSR and DSR have historically tracked closely but governance can set them independently.
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Three onramps cover most flows: minting, swapping, and converting from DAI. Each has different cost, slippage, and gas profile, so the right path depends on order size and source asset. None require KYC at the protocol layer; the contracts are permissionless on Ethereum mainnet, with bridged supply on chains including Base and Solana via canonical bridges.

Once USDS is in your wallet, the deposit step is one transaction: approve USDS, then call `deposit` on the SSR contract (or use the savings UI at app.sky.money). You receive sUSDS. To unstake, call `redeem` for USDS plus accrued yield.
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sUSDS inherits every risk that touches USDS, plus the SSR contract surface. The big four: peg risk, governance risk, RWA-counterparty risk, and smart-contract risk. None are unique to Sky — they apply to every yield-bearing stablecoin wrapper — but the magnitudes differ.
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Peg risk: USDS is collateralized by a mix of ETH, staked ETH, USDC (via the PSM), and tokenized treasuries. If USDC depegs (as it did briefly in March 2023 to $0.87), the PSM-backed portion of USDS can wobble. Governance risk: SKY token holders set the SSR rate, the collateral list, and the RWA allocations. Hostile or negligent votes can change yield or risk overnight. RWA-counterparty risk: a meaningful share of SSR yield comes from offchain treasury arrangements with named legal entities; their solvency matters. Smart-contract risk: the SSR and PSM contracts are audited and have years of production history under their MakerDAO predecessors, but no audit eliminates risk.
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Sky publishes a live risk dashboard that breaks down collateral, RWA exposure, and PSM utilization. Read it before sizing a position.
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The yield-bearing-stablecoin field has split into three camps: savings wrappers (sUSDS, sDAI), basis-trade wrappers (sUSDe), and treasury-backed wrappers (sUSDC, BUIDL, USDY). Each routes yield differently, so each carries different risk.

Source: DeFiLlama stablecoin dashboard, snapshot Q1 2026. Yield rates are not listed because they move daily; check each protocol's site for the live APY.
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The practical difference: sUSDS and sDAI pay a smoother, governance-set rate that ratchets up or down by executive vote. sUSDe pays whatever the perp-funding market pays, which has historically been higher on average but volatile and capable of going negative. sUSDC and other treasury wrappers track the Fed funds rate minus issuer fees and tend to be the lowest-volatility option, with the trade-off of KYC and centralized issuer trust.
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USDS supply is increasingly multichain — Sky has bridged USDS to Base, Solana, and other L2s via canonical bridges, and DeFi venues on those chains list sUSDS-adjacent strategies. Eco's stablecoin orchestration platform lets developers move USDS (and other major stablecoins) across 15+ supported chains without managing per-bridge integrations, which matters when a savings position lives on one chain and the user's wallet sits on another.
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Sources and methodology. Stablecoin supplies pulled from DeFiLlama on May 4, 2026. Mechanism descriptions verified against Sky docs and the Sky governance forum. SSR APY is governance-set and changes with executive votes — quote the live figure from sky.money before publishing.
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