#DeFiGetsGraded #DeFiGetsGraded

In a groundbreaking move, "Standard & Poor's Global" granted a credit rating of "-B" to the "Sky Protocol", formerly known as "MakerDAO", making it the first global rating agency to assess a decentralized protocol in the decentralized finance (DeFi) sector.

This rating is part of the stablecoin stability assessment program launched by the agency in 2023, aimed at measuring the ability of currencies like USDS and DAI, which are part of the Sky Protocol, to maintain their value against traditional currencies such as the US dollar.

The market size of the USDS currency is approximately $5.36 billion, and it received a stability rating of "4" (restricted) on a scale ranging from "1" (very strong) to "5" (very weak).

The Sky Protocol allows users to borrow against digital collateral, and the USDS currency is used as the main stablecoin in these operations. The rating report highlighted several influencing factors, most notably the concentration of deposits among a limited number of users, centralized governance, and the significant reliance on co-founder "Ron Christensen", who owns about 9% of the voting power.