USDS is a U.S.-dollar-pegged stablecoin issued by Sky Protocol, the ecosystem formerly known as MakerDAO. It targets a value of approximately $1 and is the modern, Sky-branded successor to DAI, rather than an unrelated stablecoin. USDS is not a standalone blockchain. It is a smart-contract-based token, primarily secured by the Ethereum network and supported across additional chains. The protocol uses collateralized borrowing, stablecoin conversion modules, liquidations, governance-controlled risk parameters, and diversified collateral reserves to support its dollar peg.