#DeFiGetsGraded

In a step considered the first of its kind, "Standard & Poor's Global" has granted a credit rating of "-B" to the "Sky Protocol", formerly known as "MakerDAO", making it the first global rating agency to evaluate a decentralized protocol in the decentralized finance (DeFi) sector.

This rating comes as part of the stablecoin stability assessment program launched by the agency in 2023, which aims to measure the ability of currencies like USDS and DAI, associated with the Sky Protocol, to maintain their value against traditional currencies like the US dollar.

The market size of the USDS currency is approximately $5.36 billion, and it received a stability rating of "4" (restricted), on a scale ranging from "1" (very strong) to "5" (very weak).

The Sky Protocol allows users to borrow against digital collateral, and the USDS currency is used as the primary stablecoin in these transactions. The rating report pointed out several factors.