DeFi protocol Sky suffered a net loss of $5 million in the first quarter, as profit was wiped out by USDS interest payments According to a report released by Sky contributors at Steakhouse Financial, DeFi protocol Sky (formerly MakerDAO) had a net loss of $5 million in the first quarter, a significant reversal from a profit of $31 million in the fourth quarter of last year. The main reason for the loss is the 102% year-on-year increase in interest payments to stablecoin holders, which is directly related to its strategy of promoting the new stablecoin USDS to replace DAI. Sky co-founder Rune Christensen confirmed that in order to attract capital inflows, the USDS savings rate was as high as 12.5% (dropped to 4.5% in February), leading to a surge in interest expenses. At present, the USDS interest rate is still higher than DAI, but PaperImperium, the governance liaison of blockchain research company GFX Labs, pointed out that USDS has failed to create new demand, only causing DAI holders who originally accepted zero interest to turn to high interest products. "