sUSDS Asset Listing

Proposals Community Proposal
1

I am pleased to propose the addition of Savings USDS (sUSDS), the stablecoin of Sky Protocol, to Moonwell’s suite of core lending markets on Base. sUSDS (Savings USDS) is an ERC-4626 tokenized wrapper of USDS, to Moonwell’s suite of core lending markets on Base. This proposal is an opportunity to enhance user utility, foster ecosystem growth, and provide a yield-generating, decentralized asset aligned with Moonwell’s mission.

sUSDS allows users to earn passive income through the Sky Savings Rate (SSR) while still enjoying the flexibility of transferring, staking, or lending the token. This integration enables sUSDS to act as a highly liquid, yield-bearing asset in Moonwell’s markets. More specifically, sUSDS leverages the Spark Liquidity Layer (SLL), which automatically provides liquidity into different DeFi markets to optimize yield on tokens like USDS, sUSDS, and USDC.

I think it’s worth noting for the delegates that sUSDS volume on Base is currently low. However, this proposal is forward-looking and anticipates potential growth of sUSDS on Base, especially as Maker becomes more aggressive in L2 ecosystems.

Benefits to the Moonwell Community:

  1. Built-in Yield for Users: sUSDS earns passive income via the Sky Savings Rate (SSR), allowing users to deposit a stablecoin that grows in value over time — without needing to manage complex strategies or move funds off-platform. Yield is sustained by real revenue from the Sky Protocol’s DeFi integrations, through lending and liquidity provision.
  2. Deep and Automated Liquidity on Base: With the SLL, liquidity is actively bridged and managed across chains, with Base being a core focus. This ensures Moonwell users have reliable access to sUSDS supply and exit liquidity, even as adoption scales.
  3. Diversification and Protocol Growth: sUSDS complements Moonwell’s existing stablecoin markets with a differentiated offering — a non-custodial, yield-bearing stable asset.

Token: Savings USDS

Benefits to the Moonwell Community:

  1. Enhanced Stablecoin Liquidity: Listing USDS will expand the protocol’s stablecoin offerings,

Resources and Socials

Sky Social Channels Metrics

  • Twitter: 285k followers

Market Risk Assessment

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Market Metrics

  • Market Cap: $1.6B across all networks, on Base $97M

  • Minimum/Maximum Market Cap (Last 6 months): $0M (September 25th) / $3B (March 25th)

  • Circulating Supply (on Base): 93M sUSDS

  • Maximum Supply: ∞ sUSDS

  • 30D Total Volume (CEX/DEX): $26.12M

  • 24 Hour Trading Volume: $823,649

Liquidity on Decentralized Exchanges:

  • Uniswap V3 FRXUSD/SUSDS (Ethereum) -2% Depth: $1,026,307

  • Uniswap V3 DOLA/SUSDS (Ethereum) -2% Depth: $311,300

Herfindahl Index:

The Herfindahl-Hirschman Index (HHI) measures token concentration among holders, with higher values indicating greater centralization. Currently, the HHI for this token on the Base network stands at 0.36, a level typically considered extremely centralized. However, this can be reasonably attributed to the majority of the token’s supply being held within its bridge contracts. Excluding these, the HHI drops significantly to .15.

Decentralization

  • Top 10 Holders

  • Token Contract: 0x5875eEE11Cf8398102FdAd704C9E96607675467a

  • Privileged Roles in Token Contract: The sUSDS token contract includes privileged roles that retain the ability to freeze accounts. This means that the contract administrators can restrict the use of USDS for specific wallets/smart contracts.

  • Blacklist Functionality: Yes, the sUSDS token contract includes a blacklist feature. This function enables the freezing of wallets/smart contracts preventing them from transacting with USDS.

  • Token Standard: ERC20 USDS Stablecoin (USDS) Token Tracker | BaseScan

Smart Contract Risks

  • Codebase and onchain activity:

  • Github Repo

  • Total transactions: 185,164

  • Age of token in days: 103 days

  • Security Posture: Sky Protocol has conducted a significant number of audits from notable parties like Cantina, Sherlock, and ChainSecurity. A list of audits may be found here. Bug bounties for Sky Protocol may be found here.

  • Upgradability:

  • Is it upgradeable: Yes, the sUSDS contract is upgradeable, governance mechanisms in the Sky ecosystem can manage these upgrades. To read more about the SKY governance process, see here: Maker Governance Help Portal.

  • Upgrade Process: Sky Governance can upgrade the contract if an onchain vote passes. The upgrade process involves setting the governance pause proxy module as a ward, meaning contract functions can be modified through governance decisions. All upgrades would have a timelock of 30 hours.

Oracle Assessment

Proposal Author Information

  • Name: 0xMims

  • Telegram: Mims0x

  • LinkedIn

  • Twitter: 0xMims

  • Delegate Address: 0x657D07095b082BB71ebD93F549f407A97f49094F

  • Relationship with Token: I am a Moonwell community member and delegate. I bear no relationship with the USDS token on a personal or professional level.

Conclusion

The inclusion of sUSDS as a core lending market presents an opportunity to enhance stablecoin utility and drive liquidity growth on Moonwell. By supporting USDS, we can empower users with new financial opportunities while reinforcing stability and innovation within the protocol.

I am opening this proposal to the community to review, discuss, and provide feedback on this proposal to ensure its success and alignment with our shared vision for a secure and decentralized onchain financial future.

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