{"id":"susds-susds","title":"sUSDS (SUSDS)","content":"**sUSDS (SUSDS)** is a synthetic [stablecoin](https://iq.wiki/wiki/stablecoin) operating within the Spark Protocol ecosystem. Algorithmically pegged to [USDS](https://iq.wiki/wiki/usds), a USD-denominated stablecoin issued by Mountain Protocol, it facilitates [decentralized finance](https://iq.wiki/wiki/defi) (DeFi) activities such as [staking](https://iq.wiki/wiki/staking), [liquidity provisioning](https://iq.wiki/wiki/liquidity-providers), and governance participation. The token is integrated with [MakerDAO’s](https://iq.wiki/wiki/makerdao) [DAI](https://iq.wiki/wiki/dai) infrastructure and supports cross-chain interoperability. [\\[2\\]](#cite-id-BDM94hbVGd) [\\[4\\]](#cite-id-RmNUKKlymJ) [\\[9\\]](#cite-id-b3l0UPe8e6)\n\n$$widget0 [YOUTUBE@VID](https://youtube.com/watch?v=kPWzexZC8Yo)$$\n\n## **Overview**\n\nsUSDS [stablecoin](https://iq.wiki/wiki/stablecoin) functions as a yield-bearing synthetic asset, combining collateral-backed stabilization with decentralized governance. Key operational aspects include:\n\n* **Collateralization**: Supported by reserves of [USDS](https://iq.wiki/wiki/usds) and [DAI](https://iq.wiki/wiki/dai), maintained through overcollateralization and algorithmic adjustments.- **Yield Generation**: Returns are generated through [staking](https://iq.wiki/wiki/staking) rewards, [liquidity mining](https://iq.wiki/wiki/liquidity-mining), and interest from lending markets.- **Governance**: Protocol decisions involve SPKR token holders, Spark’s [governance token](https://iq.wiki/wiki/governance-tokens).- **Cross-Chain Functionality**: Deployed on [Ethereum](https://iq.wiki/wiki/ethereum) and [Gnosis Chain](https://iq.wiki/wiki/gnosis), enabling liquidity across multiple networks.\n\nThe token functions within Spark’s \"Save\" module, which automates yield strategies and addresses impermanent loss risks associated with [decentralized exchanges](https://iq.wiki/wiki/decentralized-exchange). [\\[4\\]](#cite-id-RmNUKKlymJ) [\\[6\\]](#cite-id-Iqf5ucuSuZ) [\\[2\\]](#cite-id-BDM94hbVGd)\n\n$$widget0 [YOUTUBE@VID](https://youtube.com/watch?v=94ycY_sfFmI)$$\n\n## **History**\n\nThe development of sUSDS is closely tied to the evolution of Spark Protocol, which emerged in May 2023 as a fork of [MakerDAO’s](https://iq.wiki/wiki/makerdao) infrastructure. Created by Phoenix Labs, Spark Protocol initially focused on refining decentralized savings and lending mechanisms. Shortly after its launch, sUSDS was introduced to address demand for yield optimization among [stablecoin](https://iq.wiki/wiki/stablecoin) users, leveraging algorithmic pegging to [USDS](https://iq.wiki/wiki/usds), a stablecoin issued by Mountain Protocol.\n\n$$widget0 [YOUTUBE@VID](https://youtube.com/watch?v=YEYIJ7v3Y04)$$\n\nIn the third quarter of 2023, Spark Protocol expanded its collateral framework by integrating [USDS](https://iq.wiki/wiki/usds), a [stablecoin](https://iq.wiki/wiki/stablecoin) backed by short-term U.S. Treasuries and regulated under Bermuda’s Digital Asset Business Act. This integration marked a shift toward hybrid collateralization, combining decentralized assets like [DAI](https://iq.wiki/wiki/dai) with regulated instruments. Later that year, a protocol upgrade enabled sUSDS stakers to earn rewards from both Spark’s native incentives and external [DeFi](https://iq.wiki/wiki/defi) platforms, including [Aave](https://iq.wiki/wiki/aave) and [Balancer](https://iq.wiki/wiki/balancer).\n\nBy 2024, Spark Protocol extended sUSDS’s utility through cross-chain deployment on [Gnosis](https://iq.wiki/wiki/gnosis) Chain. This expansion aimed to accommodate [decentralized autonomous organizations](https://iq.wiki/wiki/dao) (DAOs) and institutional participants seeking interoperability between [Ethereum](https://iq.wiki/wiki/ethereum)-based applications and alternative networks. [\\[2\\]](#cite-id-BDM94hbVGd) [\\[3\\]](#cite-id-ofmsIBzCEO) [\\[4\\]](#cite-id-RmNUKKlymJ) [\\[6\\]](#cite-id-Iqf5ucuSuZ) [\\[7\\]](#cite-id-WSZqeBjhyT)\n\n## **Technology**\n\n###### **Collateral Mechanism**\n\nsUSDS employs a dual-collateral system:\n\n1. **DAI Integration**: Utilizes [MakerDAO’s](https://iq.wiki/wiki/makerdao) [stablecoin](https://iq.wiki/wiki/stablecoin) to supplement liquidity.2. **USDS Reserves**: Backed by short-term U.S. Treasuries, subject to monthly audits.\n\n[Smart contracts](https://iq.wiki/wiki/smart-contract) dynamically adjust reserves to maintain a 1:1 peg to [USDS](https://iq.wiki/wiki/usds).\n\n###### **Yield Architecture**\n\nThe yield mechanisms of sUSDS are structured around three primary components: [staking](https://iq.wiki/wiki/staking), [liquidity mining](https://iq.wiki/wiki/liquidity-mining), and lending markets. Through staking, sUSDS holders deposit tokens into Spark Protocol’s vaults, where they receive SPKR tokens, the ecosystem’s [governance](https://iq.wiki/wiki/governance-tokens) asset, alongside a proportional share of protocol-generated revenue.\n\n[Liquidity mining](https://iq.wiki/wiki/liquidity-mining) further incentivizes participation by distributing rewards to users who contribute to designated pools on [decentralized exchanges](https://iq.wiki/wiki/decentralized-exchange). Examples include the sUSDS-ETH and sUSDS-DAI pairs available on Balancer and Uniswap, which facilitate trading while rewarding providers with token emissions.\n\nSimultaneously, sUSDS deposited into Spark Lend accrues interest derived from borrower activity. Interest rates within this lending market are algorithmically adjusted based on supply-demand dynamics. Governance decisions related to these mechanisms, such as fee structures and collateral requirements, are determined by SPKR token holders via [Snapshot](https://iq.wiki/wiki/snapshot), a decentralized voting platform. Proposals typically originate in community forums moderated by Spark’s development team before progressing to formal votes.\n\n##### **Tokenomics**\n\n* **Supply**: Adjusts elastically based on demand; circulating supply is publicly verifiable via [Etherscan](https://iq.wiki/wiki/etherscan).- **Stability Fee**: Borrowers incur an annual charge of 0.5–2% to maintain protocol solvency.- **Revenue Allocation**: 60% of protocol revenue is allocated to sUSDS [stakers](https://iq.wiki/wiki/staking); 40% is retained for development.- **Decentralization**: Governance is distributed, though emergency upgrades require core team multisig approval.\n\nBridges like Connext and [Axelar](https://iq.wiki/wiki/axelar) facilitate sUSDS transfers between [Ethereum](https://iq.wiki/wiki/ethereum) and [Gnosis](https://iq.wiki/wiki/gnosis) Chain, supporting low-cost transactions and [DAO](https://iq.wiki/wiki/dao) treasury operations.\n\n#### **Future Developments**\n\nProposed upgrades include:\n\n* Deployment on [Layer 2](https://iq.wiki/wiki/layer-2) networks such as [Optimism](https://iq.wiki/wiki/optimism) and [Arbitrum](https://iq.wiki/wiki/arbitrum).- Use of sUSDS as collateral for [real-world asset](https://iq.wiki/wiki/real-world-assets-rwas) (RWA) vaults.- Exploration of AI-driven risk models for yield strategies. [\\[1\\]](#cite-id-8k9V0bwkLi) [\\[2\\]](#cite-id-BDM94hbVGd) [\\[3\\]](#cite-id-ofmsIBzCEO) [\\[4\\]](#cite-id-RmNUKKlymJ) [\\[5\\]](#cite-id-0V7iZ9mMJR) [\\[6\\]](#cite-id-Iqf5ucuSuZ) [\\[7\\]](#cite-id-WSZqeBjhyT) [\\[8\\]](#cite-id-d8Yjb4El0l)","summary":"sUSDS (SUSDS) is a decentralized stablecoin on the Ethereum blockchain, soft-pegged to the US Dollar, and part of the Sky Ecosystem.","images":[{"id":"QmTniwzcdty6JVmzK6eSSWPnvQzrevMxgvw9XNaskP84CY","type":"image/jpeg, image/png"}],"categories":[{"id":"cryptocurrencies","title":"cryptocurrencies"}],"tags":[{"id":"Stablecoins"},{"id":"Ethereum"},{"id":"Protocols"}],"media":[{"id":"QmRmQ6sHT3CYDBPSTwEzCeXDCpHk424iMwxyG5ZqbE19Ni","name":"Group_70_(1).webp","caption":"","thumbnail":"QmRmQ6sHT3CYDBPSTwEzCeXDCpHk424iMwxyG5ZqbE19Ni","source":"IPFS_IMG"},{"id":"QmYBSsJA2EkLeSiZdVpsCf79oBg1WJ6BGeq1eNTieNrpNT","name":"Design sem nome.png","caption":"","thumbnail":"QmYBSsJA2EkLeSiZdVpsCf79oBg1WJ6BGeq1eNTieNrpNT","source":"IPFS_IMG"},{"id":"https://www.youtube.com/watch?v=kPWzexZC8Yo","name":"kPWzexZC8Yo","caption":"","thumbnail":"https://www.youtube.com/watch?v=kPWzexZC8Yo","source":"YOUTUBE"},{"id":"https://www.youtube.com/watch?v=94ycY_sfFmI","name":"94ycY_sfFmI","caption":"","thumbnail":"https://www.youtube.com/watch?v=94ycY_sfFmI","source":"YOUTUBE"},{"id":"https://www.youtube.com/watch?v=YEYIJ7v3Y04","name":"YEYIJ7v3Y04","caption":"","thumbnail":"https://www.youtube.com/watch?v=YEYIJ7v3Y04","source":"YOUTUBE"}],"metadata":[{"id":"references","value":"[{\"id\":\"8k9V0bwkLi\",\"url\":\"https://www.coingecko.com/en/coins/susds\",\"description\":\"Citation 1\",\"timestamp\":1742082205605},{\"id\":\"BDM94hbVGd\",\"url\":\"https://docs.spark.fi/dev/savings/susds-token\",\"description\":\"sUSDS Token – Spark DocsChevron RightChevron RightChevron RightChevron RightChevron RightChevron RightChevron RightChevron RightChevron RightChevron RightXGitHubDiscordSunMoonXGitHubDiscordMenuChevron Right\",\"timestamp\":1742082205599},{\"id\":\"ofmsIBzCEO\",\"url\":\"https://sky.money/features#upgrade\",\"description\":\"Citation 3\",\"timestamp\":1742082205592},{\"id\":\"RmNUKKlymJ\",\"url\":\"https://sky.money/faq\",\"description\":\"Citation 4\",\"timestamp\":1742082205601},{\"id\":\"0V7iZ9mMJR\",\"url\":\"https://ipfs.io/ipfs/Qmex5coqQPXqo4FvCkPqvKfH2ibBgACTsUV3YrTGaC86LQ\",\"description\":\"Citation 5\",\"timestamp\":1742082205575},{\"id\":\"Iqf5ucuSuZ\",\"url\":\"https://en.thebigwhale.io/article-en/susds-tutorial-how-to-generate-passive-returns-with-sky\",\"description\":\"With MakerDAO's rebranding to Sky in 2024, the protocol has launched a new range of products, including the USDS stablecoin and its yield-generating version, sUSDS. Find out how to use it.\",\"timestamp\":1742082205693},{\"id\":\"WSZqeBjhyT\",\"url\":\"https://www.meria.com/en/price/SUSDS\",\"description\":\"Citation 7\",\"timestamp\":1742082205628},{\"id\":\"d8Yjb4El0l\",\"description\":\"sUSDS · susds\\n\",\"timestamp\":1742083481956,\"url\":\"https://messari.io/project/susds\"},{\"id\":\"b3l0UPe8e6\",\"description\":\"Website: Sky Money\",\"timestamp\":1742083526462,\"url\":\"https://sky.money/\"}]"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/susds"},{"id":"website","value":"https://sky.money/"},{"id":"etherscan","value":"https://etherscan.io/token/0xa3931d71877C0E7a3148CB7Eb4463524FEc27fbD"},{"id":"arbiscan","value":"https://arbiscan.io/token/0xddb46999f8891663a8f2828d25298f70416d7610"},{"id":"twitter_profile","value":"https://twitter.com/SkyEcosystem"},{"id":"discord_profile","value":"https://discord.com/invite/skyecosystem"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/Qmc83NrAkYztdLt2Bv7RbAq3MvvqXPcdxDfZpV2G97aRvt\""},{"id":"commit-message","value":"\"Refactor timeline: Replaced specific RWA market news (Oct 2024) with generic 'Launch Date' (Dec 2024).\""},{"id":"previous_cid","value":"Qmc83NrAkYztdLt2Bv7RbAq3MvvqXPcdxDfZpV2G97aRvt"}],"events":[{"id":"4dc90fa7-ca0f-4a54-a54f-536003ba20ed","date":"2024-12","title":"Launch Date","type":"CREATED","description":"Launch Date","link":"","multiDateStart":null,"multiDateEnd":null}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"language":"en","version":1,"linkedWikis":{"blockchains":["ethereum","arbitrum"],"founders":["rune-christensen"],"speakers":[]}}