Decentralized Finance protocol Sky reported a loss of 5 million dollars in Q1.

Odaily News Sky released a report stating that it recorded a net loss of 5 million dollars in the first quarter of 2025. This performance stands in stark contrast to the net profit of 31 million dollars in the previous quarter. The main reason for the losses is that the interest payment costs to token holders have 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 points out that while Sky has offered higher USDS yields to attract users, this has led to a decline in the protocol's profitability, especially if the borrowing demand for USDS does not increase accordingly. (CoinDesk)