#DeFiGetsGraded S&P Global Issues Its First Credit Rating for a DeFi Protocol – Sky Receives B-

In a historic milestone for decentralized finance (DeFi), S&P Global Ratings has issued its first credit rating for a DeFi protocol, assigning the Sky Protocol—formerly known as Maker Protocol—a rating of B- (Stable Outlook). This rating specifically applies to Sky's stablecoins—USDS, DAI, and their savings derivatives—placing them in the speculative grade category, roughly equivalent to the sovereign debt rating of the Republic of Congo.

S&P highlighted several areas of concern: centralized governance with founder Rune Christensen exerting significant influence, high depositor concentration risk, weak risk-adjusted capital buffers (only 0.4%), and persistent regulatory and cyber vulnerabilities. On the other hand, the agency acknowledged Sky's resilience since 2020, evidenced by low credit losses, robust audits of smart contracts, bug bounty programs, and diversified liquidity reserves, including tokenized money market instruments.