Sky

Sky receives a B- risk grade (30/100) from Hindenrank, where lower scores indicate lower risk. Lower risk — one of DeFi's oldest and most tested stablecoins, but the rebrand adds governance complexity and the freeze function is a philosophical break from decentralization Formerly MakerDAO, this is the protocol behind the USDS stablecoin (upgraded DAI), with $5.5B in deposits. You can earn ~6% savings yield on your USDS or borrow against crypto collateral. Its B grade reflects years of battle-testing, weighed against new governance complexity and a controversial freeze function on USDS.

The key risks identified for Sky are: (1) USDS has a freeze function that can blacklist any address. This makes it censorable, like USDC. DeFi protocols might stop accepting USDS as collateral if the freeze is ever used (2) The new governance system splits decision-making across multiple sub-groups (Stars). During a market crash, these groups could disagree and deadlock, leaving the protocol unable to adjust fast enough to prevent bad debt (3) Part of the money backing USDS sits in real-world assets like US Treasuries. If those custodians fail or regulators freeze the assets, USDS could lose its $1 peg

Sky scores 30/100 across eight risk dimensions: Mechanism Novelty: 4/15, Interaction Severity: 6/20, Oracle Surface: 2/10, Documentation Gaps: 1/10, Track Record: 3/15, Scale Exposure: 9/10, Regulatory Risk: 3/10, Vitality Risk: 2/10. The highest risk area is Scale Exposure at 9/10.

Among 25 rated CDP protocols on Hindenrank, Sky ranks #6 by safety (lowest risk score = safest). Its 30/100 risk score and B- grade place it among the safer CDP protocols.

Sky scores 3/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.