S&P Global Ratings has assigned a B- credit rating to Sky Protocol, marking the first time a major credit rating agency has rated a DeFi protocol. This significant development signals growing institutional interest and scrutiny towards decentralized finance. While acknowledging Sky Protocol's ability to meet its financial obligations, S&P cited potential vulnerabilities to adverse business or financial conditions as the reason for the B- rating. The stablecoin USDS, integral to the protocol, received a "4 (Limited)" rating regarding its ability to maintain its dollar peg. This rating provides a benchmark for other DeFi protocols and could influence investor confidence and regulatory approaches moving forward. It highlights the inherent risks within the DeFi space, particularly concerning stablecoin stability and susceptibility to market volatility. This could lead to increased demand for audited smart contracts and transparent governance models within the DeFi ecosystem. ```