S&P Global Ratings has assigned a historic B- issuer credit rating to decentralized finance platform Sky Protocol (formerly Maker Protocol), marking the first-ever credit assessment of a DeFi entity by a major agency. The rating indicates Sky Protocol can meet financial obligations but remains vulnerable to adverse conditions due to high depositor concentration, centralized governance (with founder Rune Christensen controlling nearly 9% of governance tokens), regulatory uncertainty, and weak capitalization reflected in a 0.4% risk-adjusted capital ratio.
Concurrently, S&P rated Sky's USDS stablecoin as 'constrained' (score 4/5) for maintaining its dollar peg, noting similar risks. USDS ranks as the fourth-largest stablecoin with $5.36 billion in circulation. S&P defined protocol default as a 'haircut imposed on token holders,' warning mass withdrawals or credit losses could trigger instability. The evaluation also covered DAI stablecoin and associated savings tokens (sUSDS/sDAI), though DAI's specific stability score wasn't disclosed.
In broader stablecoin assessments, S&P ranked Circle's USDC 'strong' (score 2) while Tether's USDT joined USDS in the 'constrained' category. Andrew O’Neil, S&P’s digital assets lead, emphasized the B- rating reflects vulnerability during economic stress. Sky Protocol's governance was criticized for low voter participation despite decentralized claims.
