MakerDAO rebrands as Sky, launches USDS stablecoin with $21 billion

MakerDAO’s transformation into Sky was completed in August 2024, and the newly minted USDS stablecoin now holds a $21 billion supply, positioning Sky as the third‑largest stablecoin issuer by the end of 2025 and generating $611 million in gross ecosystem revenue that year【4】.

Rebrand and new stablecoin rollout

The rebranding from MakerDAO to Sky was announced in August 2024, a move aimed at broadening the platform’s appeal beyond its DeFi origins and signaling a shift toward more traditional financial integration【4】. The flagship stablecoin, USDS, reached a circulating supply of $21 billion by early 2026, a scale that places Sky behind only the two largest stablecoin issuers globally【4】. The ecosystem’s gross revenue of $611 million in 2025 reflects the growing utility of USDS in payments, lending, and treasury operations, including usage by institutions such as Societe Generale and Huntington Valley Bank【4】.

Risk profile from a traditional finance lens

A research team from Skoltech and the Higher School of Economics examined MakerDAO’s (now Sky’s) loan portfolios using classical finance metrics, publishing the findings in IEEE Access. They reported that borrowers who successfully serviced their debt paid effective annual rates between 0.5 % and 4 %, while those who defaulted faced rates exceeding 100 % per annum【2】. The study also calculated loss‑given‑default and probability‑of‑default figures, providing a rare quantitative risk assessment for a DeFi protocol that traditionally lacks such transparency【2】.

Market positioning and tokenomics

Sky’s governance token, MKR, continues to grant holders voting rights over collateral types, minimum collateralization ratios, and stability fees, mirroring the original MakerDAO model【1】. The over‑collateralized loan mechanism ensures that each USDS token is backed by crypto assets, typically ether, with collateralization ratios ranging from 110 % to 200 %【1】. When a loan’s collateral ratio falls below the required threshold, any participant can trigger a liquidation, selling the collateral for USDS on a decentralized exchange to cover the debt【1】.

What to watch

• USDS supply milestones: monitor any supply expansions beyond $21 bn, which could affect market share.
• MKR governance proposals: changes to collateral types or minimum ratios could shift risk dynamics.
• Regulatory developments: any new guidance on stablecoins in major jurisdictions may impact Sky’s institutional adoption.

Sky’s emergence underscores a maturing DeFi sector that is increasingly intersecting with traditional finance, yet the high default rates observed for some borrowers highlight lingering credit risk. How the platform balances growth with risk mitigation will shape its role in the broader stablecoin ecosystem.