Sky's TVL Sinks 15% in a Week, Landing at a 30-Day Low of $4.42B

Sky's tracked assets are bleeding. The protocol's total value locked fell about 15% in the week ended Nov. 7, landing at $4.42 billion, according to DefiLlama's daily series. That's down from $5.20 billion on Oct. 31 — a drop of roughly $778 million.

The stablecoin side tells a similar story. DefiLlama's USDS series shows circulating supply sliding from $6.45 billion to $5.59 billion over the same stretch, a contraction of about 13.4%. That matters because it means the pullback wasn't just collateral tokens getting cheaper — balances actually shrank. It still doesn't tell us how much came from redemptions versus withdrawals.

The Nov. 7 reading was the weakest of 30 daily observations stretching back to Oct. 9, per The Defiant's comparison of the series. It sits about 29% below the window's Oct. 12 peak of $6.23 billion and under the $5.81 billion median of the prior 29 snapshots. DefiLlama's default TVL measure leaves out staking.

Don't expect the pain to hit savers' yields automatically. Sky.money lists a 3.80% annual percentage yield for sUSDS, the token users get for supplying USDS to the savings module. That Sky Savings Rate is set by governance and paid out of aggregate protocol surplus — it doesn't float with borrowing demand, so a smaller asset base doesn't mechanically drag it down.

Sky, the former MakerDAO, runs both USDS and DAI. Users can swap between them one-to-one, according to Sky Frontier Foundation's documentation. But this week's USDS drain didn't show up as a DAI inflow — DefiLlama shows DAI's circulating supply easing from $4.72 billion to $4.67 billion across the same dates.

Worth keeping the numbers in perspective: TVL and stablecoin supply aren't the same animal. DefiLlama's Sky Lending methodology prices collateral tokens at market and counts USDC sitting in the Peg Stability Module, the reserve backing stablecoin conversions. So the dollar total can dip when prices fall or balances shrink — it's not a direct read on net withdrawals or idle lending capacity. Any change to the savings rate needs an onchain governance vote.