USDS

Overview

USDS is the US dollar stablecoin of the Sky Protocol. It sits alongside DAI, and the two convert into each other through the DAI USDS converter at a fixed 1:1 ratio with no fees, a route Sky's documentation states cannot have fees enabled later (Sky Protocol Docs).

The contract

The token is an ERC-20 with permit support and EIP-1271 smart contract signature validation. It is deployed behind an ERC-1967 proxy using the UUPS pattern, so the implementation is upgradeable by whoever holds the upgrade authorization (Sky Protocol Docs).

This map records USDS on Ethereum, Base, Arbitrum and Solana. Supply outside Ethereum is bridged representation.

Sources: Sky Protocol Docs, USDS token

Backing and reserves

What the disclosure shows

USDS is issued against collateral held in Sky vaults. Sky's documentation describes the vault system, the collateral parameters that govern it, and the liquidation machinery that unwinds an undercollateralised position (Collateral Liquidation).

Sky publishes a live collateral and financials dashboard in place of a reserve attestation. That dashboard is JS-rendered and returned no readable values in this research, so no collateral total, category split or counterparty figure is stated here. Those numbers are not machine-readable at source.

What it leaves out

No reserve attestation or audit opinion for USDS was found in this research. Nothing was located that names an accounting firm, a standard such as ISAE 3000 or AT-C 105, or a reporting period.

The collateral position of USDS is documented as a mechanism, not as an audited balance. A reader can read the vault and liquidation rules in Sky's own documentation. No third-party sign-off on what the system holds has been published.

Sources: Sky Protocol Docs, Collateral Liquidation, Sky Protocol Docs, USDS token

Risks

Liquidation is auction-dependent

Sky's documentation describes Dutch auctions run by the Dog and Clipper contracts, priced off the Oracle Security Module, and it lists the failure modes itself: price curves that fall too fast or too slow, oracle delays producing stale prices, parameter changes hitting live auctions, and incentive farming (Collateral Liquidation).

The contract is upgradeable

The token contract is upgradeable through a UUPS proxy. Holders depend on Sky governance not authorizing a harmful implementation (Sky Protocol Docs).

The disclosure gap

With the financials dashboard not machine-readable and no attestation published, the size and composition of the collateral backing USDS cannot be independently confirmed from a source that returns readable content.

Sources: Sky Protocol Docs, Collateral Liquidation, Sky Protocol Docs, USDS token

What this map tracks

The Global Stablecoin Map tracks USDS across Ethereum, Base, Arbitrum and Solana.

Covered on chain: token supply on each of the four networks, market price against the USD peg, and the venues where USDS trades. The same reads back DAI, the other Sky token on this map.

Not covered: the collateral behind it. The trust boundary for the collateral position is Sky governance and its counterparties, and no on-chain read closes it. Supply on the three non-Ethereum networks is bridged representation, so a supply read there is a claim about the bridge as much as about USDS (Sky Protocol Docs).

Sources: Sky Protocol Docs, USDS token

Common questions