Sky Protocol recently reported a $5 million loss in Q1 2025 due to increased interest payments aimed at promoting the USDS stablecoin over DAI. This marks a significant change from the previous quarter's profit of $31 million.
The strategic shift led to a 102% rise in interest expenses, raising concerns about the sustainability of high-interest incentives.
Despite the financial setback, USDS's supply grew by 135%, positioning it as a strong contender in the market. Community reactions highlight the tension between incentivizing adoption and maintaining fiscal health.
Full story here: https://coincu.com/337428-sky-protocol-loss-usds-stablecoin-shift