What Is USDS Stablecoin? Sky Protocol Backing, Savings Rate, Market Cap and Conversion Data

USDS is the Sky Protocol stablecoin and the upgraded version of DAI. This page tracks public information on DAI conversion, collateral backing, Sky Savings Rate, sUSDS, market data, token contracts, supported chains, and holder yield status.

~10 min read / Updated May 2026

Table of Contents

1. USDS Key Facts

TokenUSDS
ProtocolSky Protocol, formerly MakerDAO
Relationship to DAISky describes USDS as the upgraded version of DAI, with one-to-one DAI conversion available for eligible users
PegDesigned to track the U.S. dollar
Stablecoin typeCrypto-collateralized / protocol-backed stablecoin
Savings tokensUSDS, a savings-token representation linked to the Sky Savings Rate module
Market data sourceCoinGecko and CoinMarketCap live USDS pages, checked May 7, 2026

2. Backing and Protocol Mechanism

USDS is part of the Sky Protocol system that evolved from MakerDAO. Sky and Maker documentation describe the stablecoin system as backed by protocol collateral. Collateral types can include crypto assets and real-world asset exposure, with parameters governed through the protocol.

FieldPublic description
Backing modelProtocol collateral governed by the Sky system
Collateral examplesCrypto collateral and real-world asset exposure described in Sky/Maker ecosystem materials
Peg mechanismProtocol mechanisms, market liquidity, and conversion paths inherited from the Sky/Maker stablecoin system
Live system dataUse Sky and Maker dashboards for current collateral, supply, savings rate, and protocol parameters

3. DAI Conversion and Redemption Paths

Sky states that eligible users can upgrade DAI to USDS one-to-one and convert USDS back to DAI one-to-one through Sky.money interfaces where available. That conversion path is different from trading USDS on a third-party exchange or DEX, where price depends on liquidity, routing, fees, and market conditions.

USDS can also be used inside Sky app flows, including savings and reward-related modules where available and permitted.

4. Sky Savings Rate and sUSDS

The Sky Savings Rate is the savings module for USDS. Sky documentation describes sUSDS as a tokenized savings representation. A user deposits USDS and receives sUSDS, whose USDS conversion value can increase as savings rewards accrue.

The savings rate is a protocol parameter and can change. Use Sky's official app or developer documentation for the current Sky Savings Rate, sUSDS address, and eligibility details.

Compare USDS savings with live USDT and USDC DeFi rates

USDS savings uses Sky's module. For live lending APY on larger stablecoins, compare USDT and USDC rates by protocol and chain.

5. Market Cap, Price and Exchanges

USDS market cap, price, supply, and exchange listings change continuously. On May 7, 2026, CoinGecko's live USDS page showed a multi-billion-dollar market cap, price near $1.00, and markets across decentralized and centralized venues. Use live market pages for current intraday data.

Current market capUse live CoinGecko or CoinMarketCap data because the figure updates intraday
Live price sourceCoinGecko and CoinMarketCap USDS pages list live price, supply, volume, and markets
Savings rate sourceUse Sky.money or Sky developer docs for current Sky Savings Rate and sUSDS data

6. Contracts and Supported Chains

Sky developer documentation lists the Ethereum USDS token address and sUSDS savings token address. Contract addresses below should be checked against official Sky documentation before any transfer.

TokenEthereum contract
USDS0xdc035d45d973e3ec169d2276ddab16f1e407384f
sUSDS0xa3931d71877c0e7a3148cb7eb4463524fec27fbd

Before sending USDS, check the recipient address

Stablecoin mechanics do not verify the destination wallet. If you are sending USDS to an EVM address, scan the address for blacklist and behavior signals first.

Open Address Risk Checker

7. Comparison Data Points

This page is not a recommendation or a full stablecoin comparison. The fields below are the data points to compare when looking at USDS next to USDT, USDC, PYUSD, FDUSD, or USDe.

Market capCoinGecko and CoinMarketCap live market cap pages
Backing modelProtocol collateral in the Sky/Maker stablecoin system
Conversion pathDAI to USDS and USDS to DAI one-to-one through Sky interfaces where eligible
Holder yieldUSDS is the stablecoin; sUSDS represents savings exposure through the Sky Savings Rate module
Direct protocol accessUse Sky.money and Sky docs for current eligibility and module availability

Sources Checked

Frequently Asked Questions

What is USDS?

USDS is the stablecoin of Sky Protocol, the protocol that evolved from MakerDAO. Sky describes USDS as the upgraded version of DAI.

Can DAI be converted to USDS?

Sky states that eligible users can upgrade DAI to USDS one-to-one and convert USDS back to DAI one-to-one through Sky.money interfaces where available.

What backs USDS?

Sky Protocol documentation describes USDS as backed by protocol collateral, including crypto collateral and real-world asset exposure governed through Sky's decentralized system.

What is sUSDS?

sUSDS is a savings-token representation for users who deposit USDS into the Sky Savings Rate module. Its conversion value can increase as savings rewards accrue.

Does USDS pay yield?

USDS itself is the stablecoin. Users can access the Sky Savings Rate through the savings product where eligible, receiving sUSDS or related savings accounting depending on the interface and module.

What is the USDS Ethereum contract address?

Sky developer documentation lists the Ethereum USDS token address as 0xdc035d45d973e3ec169d2276ddab16f1e407384f.

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