DeFi protocol Sky records $5 million loss in Q1

Odaily Planet Daily News Sky released a report stating that it recorded a net loss of $5 million in the first quarter of 2025. This performance is in stark contrast to the net profit of $31 million in the previous quarter. The main reason for the loss is that the cost of interest payments to token holders has more than doubled, which stems from Sky's decision to incentivize the use of its new stablecoin USDS instead of the existing DAI. The report pointed out that although Sky offered a higher USDS yield 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)