USDS, the dollar-pegged stablecoin of Sky Protocol, is not designed to appreciate like a conventional cryptocurrency. Its target value is approximately $1, so the investment case is based on: The overall assessment is mixed but relatively credible for a decentralized stablecoin. USDS benefits from MakerDAO’s long operating history, multibillion-dollar adoption, on-chain collateral transparency, growing revenue, and a substantial savings ecosystem. However, it is not a straightforward cash equivalent. Its collateral is complex, governance is influential, exposure to centralized and off-chain assets is meaningful, and its direct price upside is essentially limited to maintaining the dollar peg.