DeFi protocol Sky records $5 million loss in Q1

Odaily News Sky reported a net loss of $5 million in the first quarter of 2025. This performance was in stark contrast to the net profit of $31 million in the previous quarter.
The main reason for the loss was that the cost of interest payments to token holders more than doubled, which stemmed from Skys decision to incentivize the use of its new stablecoin USDS instead of the existing DAI. The report noted that while Sky offered higher yields on USDS to attract users, this led to a decline in the profitability of the protocol, especially if the demand for USDS lending failed to grow accordingly. (CoinDesk)