Sky Dollar USDS Crypto-collateralized
1 USDS held since September 2024 now buys what $0.94 bought back then — 6% of its purchasing power lost to US inflation. Stablecoin inflation calculator →
About Sky Dollar
USDS (Sky Dollar) is the successor to DAI, launched in September 2024 when MakerDAO rebranded as Sky. It is backed by the same collateral system and can be converted 1:1 to and from DAI at any time.
Holders can deposit USDS into the Sky Savings Rate to earn a variable yield paid by the protocol. Unlike DAI, the USDS contract is upgradeable and includes a freeze capability designed for cases such as theft or court orders; it was not active at launch, but it remains a key difference for users who chose DAI for its censorship resistance.
Much of the migration from DAI happens at the exchange level: in April 2026 Binance automatically converted users' DAI balances into USDS, accelerating the shift.
Key facts
| Issuer | Sky |
|---|---|
| Type | Crypto-collateralized |
| Backing | The Sky protocol's collateral: crypto, stablecoins and tokenized real-world assets |
| Launched | September 2024 |
| Regulation | Decentralized protocol with no licensed issuer |
| Official website | sky.money |
Peg history
Daily price of USDS against its $1 target. Daily data smooths out intraday moves, so the deepest depegs were lower than the chart shows — see the events below.
Notable depegs and incidents
No significant depeg has been recorded for USDS so far. Its lowest daily price in our data is $0.9599.
USDS supply over time
USDS FAQ
Is USDS safe?
USDS inherits DAI's overcollateralized, onchain-verifiable design and its risks: smart contracts, crypto crashes and exposure to centralized assets. Its upgradeable contract and freeze capability add governance risk.
What backs USDS?
The Sky protocol's collateral: crypto assets locked in smart contracts, other stablecoins and tokenized real-world assets such as US Treasuries.
Has USDS ever lost its peg?
No significant depeg has been recorded for USDS so far. Its lowest daily price in our data is $0.9599.
How much value has USDS lost to inflation?
Against the dollar, none — USDS is designed to stay at $1. Against what a dollar buys, about 6% since its launch in September 2024, based on the US consumer price index. Holding a stablecoin protects you from crypto volatility, not from inflation.
Compare USDS
What if you didn't want a peg?
Stablecoins copy the dollar — inflation included. Unstablecoins take the opposite bet: no peg, a fixed or shrinking supply and volatility on the label. See them in the live unstablecoin rankings.
Sources
Market data: DefiLlama (hourly). Inflation: US CPI-U from FRED. This page is informational and not financial advice.