Defi’s savings protocol declined to $ 5 million from Q1, where the “savings rate” is erased profit

Sky Sky Sky Sky recorded a loss in the first quarter of $ 5 million after interest payments for the distinguished code holders than twice, according to a report Created by Sky shareholders from Steakousesse Financial.

The loss is a blatant transformation from the previous quarter, when Sky, previously known as Makerdao, recorded a profit of $ 31 million. The reason for an increase of 102 % in benefits payments is the decision to stimulate the use of the most recent sky money for the protocol Stablecoin (USDS) on the current Dai.

“The sky saving rate remained very high at 12.5 % for the rest of the market, which prompted the huge flows,” Ron Kristinsen, co -founder of Sky, told Coindesk on Telegram. He said that when Sky began reducing interest rates to 4.5 % in February, many investors stuck.

This situation is a double -edged sword of the protocol, which was among the first group of decentralized financing applications that emanate on ETHEREUM in 2017.

Sky works similar to the traditional bank. You should lend to others at a higher rate, which causes savers.

However, providing higher rates on USDs without increasing an interview in the demand for stablecoin hurts the profitability of the protocol, paper, and governance connection at the GFX Research GFX Labs, for Coindsk, for Coindsk on Telegram.

“Usds is a large traction on profits,” he said. “Dai earns money. Usds, not much.”

Payment towards USDs is part of the alleged game end plan in Sky, initiative Under the leadership of Christnin, it aims to convert the protocol into a more central and flexible system.

There is no new request?

When Makerdao Sky was renamed and launched USDs in August as part of the end of the game, the plan was that the new Stablecoin would like a different group of users about Dai.

USDs are designed to better comply with the regulations and financial reports requirements. It was targeting advanced investors such as hedge funds, family offices and other institutions looking to dip their toes to decentralized financing.

But it is not clear whether USDs are able to attract a large number of new users.

Investors can revenue USDs Comapred to different Dai: USDS pays 4.5 %, while Dai gives 2.75 %.

Paperperium said that many investors have exchanged their Dai against USDs, which means that Sky paid more for people who were previously happy to earn a lower return, or in many cases, no return at all.

Certainly, the report said that the joint offer of USDs and Dai has more 57 % since the beginning of the quarter. But a large part of this increase is Ethaina, the Dollar Plot Protocol. She has Stacked More than $ 450 million in Usded USDs, and passes the return for those who share Stablecoin, USDE.

Over the past week, Ethena has replaced some of its USDs to USDTB – Stablecoin Backed By Blackrock, or Buidl, or Buidl.

This step means that there are fewer than the United States in trading. But it may also benefit from Sky by reducing the interest amount that the protocol must pay.

Read more: Kristensen hopes at Makerdao that “fixed decision” where MKR holders vote on Sky Brand