Sky TVL drops about 15% in a week as USDS supply falls
TVL down to $4.42 billion in one week
Sky's total value locked, or TVL, fell about 15% in the week ended Nov. 7 to $4.42 billion, according to DefiLlama's daily series. TVL is the total dollar value of assets tracked in a protocol.
The figure fell from $5.20 billion on Oct. 31, a decline of roughly $778 million. Over the same dates, the supply of USDS also fell. USDS is a stablecoin, a token designed to keep its price near $1.
Key numbers from the week
- TVL: $5.20 billion on Oct. 31 to $4.42 billion on Nov. 7
- USDS circulating supply: $6.45 billion to $5.59 billion, down about 13.4%
- DAI circulating supply: $4.72 billion to $4.67 billion
- Savings rate listed on Sky.money: 3.80% for sUSDS
Lowest reading in the 30-day window reviewed
The Nov. 7 TVL reading was the lowest among 30 daily observations beginning Oct. 9, according to The Defiant's comparison of the series. It was about 29% below the Oct. 12 high of $6.23 billion in that window. It was also below the $5.81 billion median of the preceding 29 snapshots.
DefiLlama's default TVL measure excludes staking. Staking means locking tokens to help run a network or earn rewards.
Supply fell alongside collateral value
Sky, formerly MakerDAO, operates the USDS and DAI stablecoins. Users can convert between the two at a one-to-one ratio, according to Sky Frontier Foundation documentation.
The weekly drop in USDS was not matched by a rise in DAI. DAI supply slipped from $4.72 billion to $4.67 billion over the same period.
The source noted that the USDS contraction shows the retrenchment extended beyond a change in the dollar valuation of collateral. It does not establish how much of the TVL decline came from redemptions or withdrawals.
What TVL does and does not show
TVL and stablecoin supply measure different things. DefiLlama's Sky Lending methodology counts collateral tokens at market prices. It also includes USDC in the Peg Stability Module, the reserve used for stablecoin conversions.
The dollar total can fall when token prices decline or when balances shrink. It is not itself a measure of net withdrawals or unused lending capacity.
How the savings rate is set
For savers, a smaller tracked asset base does not automatically mean a lower yield. Sky.money lists a 3.80% annual percentage yield for sUSDS. That is the token users receive when supplying USDS to the savings module.
The Sky Savings Rate is set by governance. It is funded from aggregate protocol surplus rather than automatically adjusting to borrowing demand. Sky documentation says the protocol earns fees from collateralized loans and returns from capital deployed through independent allocators, then pays the savings rate from protocol revenue. Changes to that rate require an onchain governance vote.
Source for this report
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.