Sky (MakerDAO)
score
Fees: Stability fee on borrowed DAI/USDS; DSR/SSR pays savers
Sky/MakerDAO fits users who want to borrow a decentralized stablecoin against crypto collateral from a long-lived system. Note the increasing exposure to real-world and centralized-stablecoin collateral. Nothing here is financial advice.
What Sky (MakerDAO) Is
Sky, formerly MakerDAO, is the decentralized credit system that lets users lock crypto collateral to mint the DAI and USDS stablecoins, effectively borrowing a dollar-pegged asset against their holdings. Launched in 2017, it is one of the oldest DeFi protocols still operating, governed on-chain and reformed heavily after the 2020 Black Thursday stress event. Savers can also earn a predictable return through the savings rate (DSR/SSR) without taking on borrower risk.
How It Scores on What Matters
Sky earns 8.4 overall, anchored by liquidity at 9 — DAI is among the deepest and most integrated stablecoins in the market, so both minting and exiting are reliable. Security and audits (8.5) and collateral and risk management (8.5) reflect its heavily audited collateralized-debt design and a liquidation and auction system that has been battle-tested and reformed. Transparency and track record score 8 given its long, mostly public history. Rates land lowest at 7.5, since stability fees are set by governance and can rise materially depending on market conditions.
Costs and Fees
Borrowers pay a stability fee — effectively the interest on minted DAI or USDS — which governance adjusts by collateral type and market regime. Savers earn the DSR/SSR on deposited stablecoins, giving a relatively predictable yield. Because the stability fee is a policy lever rather than a purely algorithmic curve, borrowing can become costly when the system tightens, so it pays to check the current rate for your chosen collateral before opening a position.
The Main Risk
The most important caveat is Sky's growing reliance on real-world assets and centralized stablecoins such as USDC in its collateral mix, which introduces off-chain counterparty risk that a purely crypto-backed system would not carry. Layered on top, the Sky rebrand and the endgame/SubDAO roadmap add structural complexity that reduces clarity for some long-time users. As always with a collateralized-debt system, falling collateral value can trigger liquidation.
Who It's For
Sky fits users who want to borrow a decentralized, deeply liquid stablecoin against crypto from a long-lived and heavily tested system, or who want a straightforward on-chain savings rate. It is best suited to people comfortable monitoring collateral health and accepting the system's increasing exposure to real-world and centralized collateral. If you value longevity and DAI's liquidity over the lowest possible borrowing cost, it is a strong option. Nothing here is financial advice.
Overall 8.4 / 10 — the weighted average of the criteria above. How we score →
- + One of the oldest and most resilient DeFi credit systems, backing DAI/USDS since 2017
- + Proven collateral auction and liquidation machinery reformed after Black Thursday
- + Deep DAI liquidity and a predictable savings rate (DSR/SSR)
- + Fully on-chain, heavily audited collateralized-debt design
- − Growing reliance on real-world assets and USDC adds off-chain counterparty risk
- − Sky rebrand and endgame/SubDAO complexity reduce clarity for some users
- − Stability fees can spike, making borrowing costly in some regimes
Is Sky (MakerDAO) safe?
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It is one of the most resilient DeFi credit systems, scoring 8.5 for both security and collateral risk management in our review, with a proven liquidation and auction machinery reformed after Black Thursday. The key caveat is rising exposure to real-world assets and centralized stablecoins like USDC, which adds off-chain counterparty risk. Collateralized borrowing also carries liquidation risk.
What is the difference between Sky and MakerDAO?
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Sky is the rebrand of MakerDAO, and USDS is the upgraded, Sky-branded stablecoin alongside the long-running DAI. The underlying collateralized-debt system and much of its infrastructure carry over. We note in our review that the rebrand and the endgame/SubDAO structure add complexity that can reduce clarity for some users.
How much does it cost to borrow from Sky?
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Borrowers pay a stability fee on the DAI or USDS they mint, set by governance and varying by collateral type. We score rates 7.5 because those fees can spike in some regimes, making borrowing expensive. Savers separately earn the DSR/SSR. Check the current fee for your collateral before opening a vault; this is not financial advice.
Is DAI backed by real assets?
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DAI and USDS are backed by a mix of collateral that now includes crypto assets, real-world assets, and centralized stablecoins such as USDC. That diversification supports the peg and liquidity but is also the main risk we flag, since real-world and centralized collateral introduce off-chain counterparty exposure beyond pure on-chain crypto.
Is Sky a good option for lending and borrowing?
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For a decentralized stablecoin borrowed against crypto from a veteran system, we rate it well at 8.4, with standout liquidity. Its trade-offs are governance-set fees that can rise and growing centralized-collateral exposure. Whether it suits your needs depends on your goals and risk tolerance; nothing here is financial advice.