Sky USDS Review
Crypto-collateralised with public collateral data
of 10
USDS is the native stablecoin of the Sky Protocol, backed by on-chain collateral whose market value, including the excess above coverage, is published live. There is no issuer, no regulator and no redemption counterparty in the conventional sense.
No money changes hands. This is a non-commercial project: no advertising, no sponsored placements, and no affiliate or referral links. Links to the services below earn us nothing. Every overall score is the plain average of the criteria shown on the page, so you can check the arithmetic yourself — see our rating methodology and how the site is funded.
Type
Crypto-collateralised, protocol-issued
Backing
On-chain collateral, market value published including excess
Regulator
None
Redemption
No issuer counterparty
Related token
Reported jointly with DAI
Scores
Each criterion carries equal weight. The overall score is the average of these 5 scores — (6.0 + 3.0 + 5.0 + 5.0 + 6.0) ÷ 5 = 5.0.
Pros
- Collateral value is published live on-chain, including the excess above coverage
- No single issuer whose insolvency could impair the backing
- Supply reported openly alongside DAI
Cons
- No regulator supervises it, because there is no issuing entity to supervise
- No redemption counterparty — exit depends on the protocol and on market liquidity
- The peg mechanism is not explained on the official site
- Collateral composition is not set out on the landing page
A different kind of claim
USDS is not a claim on a company. It is the native stablecoin of the Sky Protocol, backed by on-chain collateral whose full market value — including the excess above the coverage requirement — is published and can be inspected directly rather than attested quarterly by an accountant.
That is a genuine strength this rubric does not fully capture: live on-chain data is more current than any attestation. But the criteria that exist here score named regulators, named custodians and redemption counterparties, and a protocol-issued token has none of those by design.
What the site does not explain
The peg mechanism is not described, the collateral composition is not set out on the landing page, and the relationship to DAI is only implied by joint supply reporting. For readers deciding whether to hold it, those are the questions that matter most.
How it compares
Ethena USDe
Synthetic dollar, and says so
Tether (USDT)
The largest supply, the thinnest disclosure cadence
First Digital USD (FDUSD)
Bankruptcy-segregated reserves in a Hong Kong trust
Global Dollar (USDG)
Supervised in Singapore and under MiCA in Europe
PayPal USD (PYUSD)
Regulated issuer behind a consumer brand
Pax Dollar (USDP)
Cash-only reserves with unconditional redemption
USD Coin (USDC)
Instrument-level reserve disclosure
Ripple USD (RLUSD)
Dual regulatory approval with a named custodian
Gemini Dollar (GUSD)
Named auditor, named regulator, named custodians
Sources
Scored from published primary sources rather than hands-on use. Every figure above comes from one of the pages below, on the date shown. Manufacturers change prices and specifications without notice — if something here no longer matches the source, tell us and we will correct it.
- 1.Sky — official site (USDS supply and collateral) — checked
Frequently asked questions
Is USDS backed by dollars?
No. USDS is the native stablecoin of the Sky Protocol, backed by on-chain collateral whose market value is published, rather than by fiat reserves held at a bank.
Who regulates USDS?
No regulator. There is no issuing company to supervise, which is a structural difference rather than an oversight failure.
Nothing here is financial advice. Editorial policy · How we score · How we're funded.