DeFi Savings Protocol Sky Slumps to $5M Loss as USDS Interest Payments Wipe Out Profit

DeFi savings protocol Sky posted a first-quarter loss of $5 million after interest payments to token holders more than doubled, according to a report created by Sky contributors from Steakhouse Financial.The loss is a stark turnaround from the previous quarter, when Sky, formerly known as MakerDAO, registered a $31 million profit. The reason for the 102% increase in interest payments is the decision to incentivize use of the protocol's newer Sky dollar stablecoin (USDS) over the existing DAI. "The Sky Savings Rate was kept very high at 12 source: https://www.coindesk.com/business/2025/05/13/defi-savings-protocol-sky-slumps-to-5m-loss-as-usds-interest-payments-wipe-out-profit