Sky Protocol Loses $5 Million Amid Shifting Stablecoin Strategy

Sky Protocol, formerly known as MakerDAO, recently reported a substantial $5 million loss in the first quarter of 2025. This financial downturn stems from a strategic shift aimed at promoting their stablecoin, USDS, over DAI. Increased interest payments were implemented to attract users to USDS, doubling expenditures and contributing significantly to the loss. This contrasts sharply with the previous quarter’s $31 million profit, raising questions about the viability of this strategy for achieving long-term success.