S&P Global has given Sky Protocol a B- credit rating, the first for a DeFi entity. This assessment reflects significant concerns regarding its governance, capitalization, and regulatory environment as Sky’s USDS stablecoin is positioned as the fourth-largest with around 5.36 billion USD in market cap.
The rating indicates potential vulnerabilities such as heavy reliance on the founder and the risks of depositor withdrawals exceeding liquidity. Andrew O’Neil from S&P noted the rating suggests that while Sky can meet its obligations, adverse conditions could pose challenges.
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