DeFi savings protocol Sky (formerly MakerDAO) posted a $5 million loss in Q1 2025, a stark contrast to its $31 million profit in the previous quarter. The loss stemmed from incentives to use the new stablecoin USDS over DAI, causing interest payments to surge by 102%. While USDS aims to attract sophisticated investors, its user base growth is uncertain, and high rates are straining profitability. Below is the original content (edited for clarity):TL;DRDeFi savings protocol Sky (ex-MakerDAO) r...

DeFi savings protocol Sky (formerly MakerDAO) posted a $5 million loss in Q1 2025, a stark contrast to its $31 million profit in the previous quarter. The loss stemmed from incentives to use the new stablecoin USDS over DAI, causing interest payments to surge by 102%. While USDS aims to attract sophisticated investors, its user base growth is uncertain, and high rates are straining profitability. Below is the original content (edited for clarity):TL;DRDeFi savings protocol Sky (ex-MakerDAO) r...