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Decentralized Finance protocol Sky reported a loss of 5 million USD in the first quarter, with USDS interest expenses surging.
According to the Gate.io News bot and CoinDesk reports, the DeFi savings protocol Sky experienced a loss of $5 million in the first quarter of 2025, in stark contrast to a profit of $31 million in the previous quarter.
Data shows that the interest expenditure of Sky's newly launched stablecoin USDS increased by 102%, due to measures taken by the protocol to attract investors from DAI to USDS. The interest rate of USDS was reduced from 12.5% at the beginning of the year to 4.5% in February.
During this period, the total supply of USDS and DAI increased by 57%. Among them, the Ethena protocol contributed over $450 million in funds, which were used to stake USDS and distribute the earnings to the holders of its stablecoin USDe.