Sky Protocol, formerly known as MakerDAO, has become the first decentralized finance protocol to receive a credit rating from S&P Global Ratings, highlighting the growing interest in decentralized finance assessments.
Rating by S&P Global
On August 8, 2025, S&P Global Ratings issued a 'B-' credit rating to Sky Protocol, marking the first time a major agency assessed a decentralized finance protocol. This rating is part of S&P's stablecoin stability assessment program initiated in 2023, which includes tokens like USDS and DAI.
Risks and Borrowing
Sky Protocol uses USDS as its primary stablecoin for borrowing against cryptocurrency collateral. S&P identified several risk factors, including concentration risk from large depositors, governance centralization, and reliance on co-founder Rune Christensen, who controls nearly 9% of voting power. Additionally, Sky maintains a low capital buffer with a capital ratio of 0.4% as of July 27.
Decentralized Finance Challenges
Sky's Asset-Liability Committee participated in the rating process, addressing traditional financial risks as well as DeFi-specific vulnerabilities such as smart contract risks. The 'B-' rating implies that Sky can meet its debt obligations now but may face challenges under adverse conditions.
The rating from S&P Global underscores both the opportunities and challenges associated with decentralized finance, indicating the potential for further integration of DeFi with traditional finance.
