Sky, the successor to MakerDAO, is off to a strong start this month, with its total value locked (TVL) climbing to $7.52 billion, a 38% increase since March 1, according to DefiLlama.
This makes Sky the fourth-largest decentralized finance (DeFi) protocol by TVL, trailing Aave, Lido, and EigenCloud. The sUSDS savings pool alone accounts for approximately $6.5 billion in deposits and has attracted nearly $1.3 billion since the start of the month.
As DeFi yields have dried up in the wake of the market downturn, Sky’s fixed 3.75% savings rate is higher than stablecoin supply rates on major protocols like Aave and Morpho. For example, supplying USDT or USDC on Aave’s Ethereum markets currently yields less than 2%.
“Yield is definitely the main factor, but it's also one of the lowest risk, liquid yield sources in DeFi,” Sam MacPherson, CEO of Phoenix Labs, told The Defiant.
Sky founder Rune Christensen also emphasized that users are prioritizing safety amid the market turbulence.
“Honestly, it's the classic story of how Sky, just like Maker used to, always does better in bear markets because it's just focused on a solid product that can be trusted to be stable and deliver good returns,” Christensen told The Defiant.
The SKY token has rallied alongside the surge in TVL. The token is up approximately 4% over the past seven days and 12% over the past month, according to CoinGecko.
The token remains about 26% below its all-time high, per CoinGecko, with a market capitalization of roughly $1.7 billion.
