Announcing the sky.money USDT Savings Vault & USDS Flagship Vault
We’re excited to announce the launch of the sky.money USDT Savings Vault, expanding sky.money’s curator presence on Morpho with a new vault designed to attract deep USDT liquidity and enable efficient USDS/USDT lending. We are also announcing the USDS Flagship Vault, a new vault offering USDS depositors a risk/reward profile above vanilla sUSDS — combining the Sky Savings Rate yield with targeted exposure to blue-chip lending markets.
sky.money USDT Savings Vault
This vault accepts USDT deposits and deploys them into the existing sUSDS / USDT Morpho market — a deep, battle-tested market with over $133M in liquidity.
Rather than launching a new market, the USDT Savings Vault plugs directly into an established sUSDS/USDT market (LLTV: 96.5%), providing immediate access to existing liquidity and utilization. This approach allows depositors to earn yield from day one while preserving conservative operational risk management.
Vault yield is driven by market utilization and borrowing demand, with additional USDS rewards distributed to depositors during the launch phase via Merkl.
sUSDS / USDT Market
The sUSDS / USDT market allows users to:
- Deposit sUSDS as collateral
- Borrow USDT against it at an LLTV of 96.5%
- Enable looping strategies that increase demand for sUSDS and deepen USDT liquidity
The market uses Morpho’s adaptive interest rate model and already benefits from established liquidity at launch.
Rewards & Incentives
At launch, Sky is providing USDT incentives via Merkl to bootstrap liquidity and reward early depositors. Incentives are continuously distributed, with amounts set on a weekly basis:
- Week 1: 50,000 USDT
- Week 2: 50,000 USDT
- Week 3: 25,000 USDT
- Week 4: 25,000 USDT
sky.money USDS Flagship Vault
This vault accepts USDS deposits and applies a structured allocation strategy: 80% of deposits earn the Sky Savings Rate (SSR), distributed via Merkl, while 20% is actively allocated across a curated set of Morpho lending markets.
The vault is managed by an allocator bot under on-chain constraints — capping total market exposure at 20% of vault assets and limiting any single market to 5% — ensuring withdrawal liquidity is preserved at all times.
Vault yield is driven by a combination of SSR rewards and market lending returns, with additional incentives distributed during the initial launch phase via Merkl.
stUSDS / USDS Market
The stUSDS / USDS market allows users to:
- Deposit stUSDS as collateral
- Borrow USDS against it under an LLTV of 86%
- Benefit from a deep, existing market reused from the USDS Risk Capital deployment
wstETH / USDS Market
The wstETH / USDS market allows users to:
- Deposit wstETH as collateral
- Borrow USDS against it under an LLTV of 86%
- Access ETH-backed leverage while contributing to USDS lending depth
WETH / USDS Market
The WETH / USDS market allows users to:
- Deposit WETH as collateral
- Borrow USDS against it under an LLTV of 86%
- Participate in ETH-collateralized borrowing against USDS
cbBTC / USDS Market
The cbBTC / USDS market allows users to:
- Deposit cbBTC as collateral
- Borrow USDS against it under an LLTV of 86%
- Access Bitcoin-backed leverage within the Sky ecosystem
All markets use Morpho’s adaptive interest rate model and are seeded to ensure healthy utilization at launch.
Rewards & Incentives
At launch, Sky is providing USDS incentives via Merkl across the vault. 80% of deposits earn the SSR passively, while active market allocations generate additional lending yield. Incentives are continuously distributed, with amounts set on a weekly basis:
- Week 1: 50,000 USDS
- Week 2: 50,000 USDS
- Week 3: 25,000 USDS
- Week 4: 25,000 USDS
