CDPs · Review
ActiveSky Lending Review 2026: USDS Borrowing and Savings
Sky Lending is the borrowing side of the Sky ecosystem, which runs on the USDS stablecoin, the upgraded version of DAI. DefiLlama lists about $4.9 billion in TVL on Ethereum, but borrowing terms are not public and need checking in the app.
By the DappsAtlas editorial team · Updated
DappsAtlas score
—/10
Not rated
Our verdict on Sky Lending
Sky Lending suits users comfortable with Ethereum who want to borrow against crypto collateral or hold a stablecoin from the DAI lineage. Its main strength is scale, with about $4.9 billion in TVL and a broad set of savings, rewards, staking and borrowing tools. The main caveat is that rates, collateral rules and audit details are not public, and CDP borrowing carries liquidation risk. Check the app's terms before committing funds.
Score breakdown
How Sky Lending scores
- Security
- n/a
- Ease of use
- n/a
- Fees
- n/a
- Features
- 7.5/10
Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.
What is Sky Lending?
Sky Lending is part of the Sky ecosystem, which is powered by the USDS stablecoin. DefiLlama describes USDS as the upgraded version of DAI and files the project under CDPs. It runs on Ethereum.
The homepage describes savings, rewards, staking and borrowing, without giving up control. DefiLlama shows about $4.9 billion in total value locked, down 6.0% over seven days, and lists the SKY token and two audits.
This review relies on that data and on general knowledge of how CDP protocols work. Specific rates, collateral types and governance details are not public, so verify them in the official app.
How Sky Lending works
Sky Lending follows the collateralized debt position (CDP) model. A user locks approved collateral in a smart contract and borrows a stablecoin against it, here USDS, the upgraded version of DAI. The loan must stay over-collateralized, so the collateral is worth more than the debt.
If collateral value falls too far, the position can be liquidated to cover the debt. Borrowers usually keep a buffer to avoid this. The project does not state the specific ratios or rates.
Beyond borrowing, the homepage describes savings, rewards and staking in the same ecosystem. These let holders put USDS to work without handing assets to a centralized custodian, though details are not public.
6 features
Key features
01
USDS stablecoin
The ecosystem is built around USDS, described as the upgraded version of DAI, which serves as the core unit for savings and borrowing.
02
Non-custodial borrowing
The homepage highlights borrowing without giving up control, in line with the CDP model where collateral is locked in smart contracts.
03
Savings and rewards
The homepage lists savings and rewards as ways to earn with the stablecoin. Specific rates are not given publicly.
04
Staking
The homepage mentions staking as part of the product set. Details of what can be staked are not given publicly.
05
SKY token
The listing names SKY as the ecosystem token. Its exact role is not described publicly.
06
Listed audits
DefiLlama lists two audits for the protocol, though reports are not detailed publicly.
Pros and cons
What we like
- Large TVL of about $4.9 billion shows substantial use.
- Non-custodial approach: the homepage says users keep control of their assets.
- Combines borrowing, savings, rewards and staking in one ecosystem.
- Two audits are listed on DefiLlama.
- Builds on the DAI lineage through USDS, described as its upgraded version.
Watch out for
- TVL fell 6.0% over the last 7 days, a reminder that deposits can leave quickly.
- Borrowing against collateral carries liquidation risk if collateral prices drop.
- Public sources list only two audits and give no details on their scope, dates or auditors.
- Fee, rate and collateral details are not public, so users must check the app for current terms.
- Depends on smart contracts and on the USDS stablecoin holding its peg.
- Only Ethereum is listed, so users on other chains must bridge or use other routes.
Sky Lending fees
Fees, stability rates and collateral requirements are not published. Users would see current borrowing rates, savings rates and any network gas costs inside the Sky.money app before confirming a transaction.
Since the product runs on Ethereum, transactions require gas paid in ETH. Gas can vary a lot with network demand.
Is Sky Lending safe?
DefiLlama lists two audits, but the project does not say who performed them or what they covered. Audits reduce risk but do not remove it. Main risks include smart-contract bugs, oracle or collateral problems, liquidation of leveraged positions and the stablecoin losing its peg.
The homepage emphasizes users keeping control, which fits the non-custodial model, so users hold their own wallet keys. Public sources give no information on incidents or regulatory status. Check current documentation and never share seed phrases.
6 steps
How to get started with Sky Lending
- 1
Read the official documentation and confirm you are on the correct Sky.money address before connecting a wallet.
- 2
Set up an Ethereum-compatible wallet and fund it with ETH for gas.
- 3
Learn how USDS relates to DAI, and check what your holdings are eligible for.
- 4
Review the current borrowing terms, collateral options and liquidation rules in the app.
- 5
Start with a small amount and keep a safety margin on any borrowed position.
- 6
Monitor your position and collateral value regularly, since prices can move quickly.
Who Sky Lending is for
Sky Lending is for crypto users who already use Ethereum wallets and want non-custodial borrowing or yield on a stablecoin. It fits people who understand over-collateralized loans and liquidation risk. It is less suited to beginners who have not used DeFi before or who cannot monitor a position.
Sky Lending FAQs
What is Sky Lending?
Sky Lending is a CDP-style lending product in the Sky ecosystem, which is built around the USDS stablecoin. USDS is described as the upgraded version of DAI. The app also offers savings, rewards and staking.
What is the relationship between USDS and DAI?
Public sources say USDS is the upgraded version of DAI and powers the Sky ecosystem. Beyond that, public sources give no details on how the upgrade or any conversion works, so check the official app for current instructions.
Which blockchain does Sky Lending run on?
DefiLlama lists Ethereum as the only chain for this entry. The project does not mention other networks.
Does Sky have its own token?
DefiLlama lists a token called SKY. The project does not describe its supply, utility or governance role, so read the project documentation before relying on it.
Is Sky Lending safe?
No project of this kind is risk-free. Risks include smart-contract bugs, liquidation of borrowed positions, stablecoin depeg and market swings. DefiLlama lists two audits, but audits do not remove these risks.
What does it cost to borrow?
Borrowing rates, fees and collateral limits are not public. They are shown in the app and can change, so check them before opening a position.
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How we checked
Sources
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