sky.money USDS Flagship

Risk reportEthereum0xe15f…11e0

Risk

Depositing into sky.money USDS Flagship means underwriting risks you usually can't see: how much you could lose, whether you'd get out in time, and what would cover it.

Morpho BlueVault (aggregates across markets)

How much could be lost?

Your deposit (optional)

8%of your deposit if collateral falls 50%Only smart-contract bug reaches a total 100%, with no warning to exit.

Can I exit?

Via underlying marketsonly governance changes give a 3-day timelock to exit — every other modeled failure is no-warning

What backs it?

No committed backstopnothing committed would cover a loss

Track record

No pool-level losses recorded36 audits, latest Dec 15, 2025

Collateral and oracle exposure

Each token you're exposed to, and the market it backs. If that market breaks, this is how much the vault loses, in dollars and as a share of the vault. Open a row for the price feed, stress curve, and supply-cap detail. Below, the oracles those prices depend on and what is at stake if one is compromised.

If collateral prices dropper asset · no liquidations · stress estimate

est. bad debt up to 3% of deposit

Driven by cbBTC −30% 2% · wstETH −30% 1% · PT-sUSDS-26NOV2026 −30% <1% · other <1% · −100% 18% modeled all-to-zero bad-debt ceiling

CollateralAllocationMarket ExposureOracle Exposure

cbBTCMarketChainlink9%of vault · bad debt · $3.45mOracle exposure 1.0%

10%of vault · $3.81m9%of vault · $3.45m1.0%separate path

What it's made of

Market· Chainlink(aggregator)

cbBTC is priced via cbBTC / USD, quoted in USDS / USD — 2-hop market-rate feeds (Chainlink).

BasecbBTC / USDMarketChainlinkQuoteUSDS / USDMarketChainlink

Heartbeat 24h · Deviation 200bps

Markets this collateral backs · 1

→ USDS86% LLTV0xa5ae…33b4Chainlink

Aggregate Collateral Trust (ACT):$280.15m148 vaultsToken:0xcbb7…33bfAllocation: 10% of the vault · $3.81m

If it breaks

−30% default

At −30%:est. bad debt up to 2% of depositUses 1 market LLTV curve · capped at allocation $3.81m · drag to set this asset's drop

Oracle exposure: up to 1.0% of vault drainable if the feed is compromisedseparate path: an attacker borrows against a fake price

wstETHHybridChainlink6%of vault · bad debt · $2.33mOracle exposure 0.7%

7%of vault · $2.59m6%of vault · $2.33m0.7%separate path

What it's made of

Hybrid· Chainlink(composite)

wstETH mixes exchange-rate/NAV (wstETH/stETH exchange rate) with market-rate (STETH / USD, USDS / USD) — insulated from wstETH/stETH exchange rate market deviation, but exposed to STETH / USD, USDS / USD.

BasewstETH/stETH exchange rateExchange rateSTETH / USDMarketChainlinkQuoteUSDS / USDMarketChainlink

Heartbeat 23h · Deviation 100bps

Markets this collateral backs · 1

→ USDS86% LLTV0xc9a9…e292Chainlink

Aggregate Collateral Trust (ACT):$753.82m165 vaultsToken:0x7f39…2ca0Allocation: 7% of the vault · $2.59m

If it breaks

−30% default

At −30%:est. bad debt up to 1% of depositUses 1 market LLTV curve · capped at allocation $2.59m · drag to set this asset's drop

Oracle exposure: up to 0.7% of vault drainable if the feed is compromisedseparate path: an attacker borrows against a fake price

PT-sUSDS-26NOV2026Hybrid2%of vault · bad debt · $712,351.31

2%of vault · $712,351.312%of vault · $712,351.31—

What it's made of

Hybrid(composite)

Mixes market and exchange-rate inputs — partial depeg insulation, partial market exposure.

Markets this collateral backs · 1

→ USDS92% LLTV0xda59…4646

Aggregate Collateral Trust (ACT):—2 vaultsToken:0xdc16…6094Allocation: 2% of the vault · $712,351.31

If it breaks

−30% default

At −30%:est. bad debt up to 0.5% of depositUses 1 market LLTV curve · capped at allocation $712,351.31 · drag to set this asset's drop

WETHMarketChainlink0.6%of vault · bad debt · $235,104.3Oracle exposure 0.2%

0.8%of vault · $297,096.770.6%of vault · $235,104.30.2%separate path

What it's made of

Market· Chainlink(aggregator)

Priced off live market data — a depeg moves the price and can liquidate positions.

Markets this collateral backs · 1

→ USDS86% LLTV0x76b2…af4dChainlink

Aggregate Collateral Trust (ACT):$1.526b96 vaultsToken:0xc02a…6cc2Allocation: 0.8% of the vault · $297,096.77

If it breaks

−30% default

At −30%:est. bad debt up to 0.1% of depositUses 1 market LLTV curve · capped at allocation $297,096.77 · drag to set this asset's drop

Oracle exposure: up to 0.2% of vault drainable if the feed is compromisedseparate path: an attacker borrows against a fake price

Unallocated (incl. $29.63m idle)not lent into any market — no collateral exposure80% · $29.62m

80%of vault · $29.62m——

+1 market with no current position

Oracle dependencies

1 feed · 1 control point

Up to2%of vault drainable if these feeds are mispriced · $677,603.87

Each price traces to a feed and the on-chain admin that can move it. Compromise either to misprice the collateral and borrow against it. Per-row amounts overlap and are not summed.

Chainlink·a 4/9 Safe multisigprices cbBTC, wstETH, WETH0x21f7…73ca2% of vault · $677,603.87drainable if it is compromised

Loss scenarios

Each row is a distinct failure, and every loss is a share of your deposit — the same percentage whatever you deposited. Loss is that share at a −30% collateral crash, the standard stress; Worst case is the ceiling if everything goes wrong, a conditional loss if it happens rather than a likelihood. Open a row for the loss at every crash depth, the dollar amounts, conditions, and the math.

11 scenarios · 9 with no time to exit · loss as % of deposit


Full-deposit & protocol-level(2)
	100%	Full deposit	Instant
	3%	up to 18%	Instant
Price-driven collateral stress(1)
	3%	up to 18%	Instant
Oracle & liquidation failures(5)
	3%	up to 18%	Instant
	3%	up to 18%	Instant
	<1%	up to 7%	Instant
	1%	up to 6%	Instant
	—	up to 2%	Instant
Vault role & allocator(3)
	—	Full deposit	3 days
	—	Full deposit	Instant
	—	up to 50%	3 days

Trust and control

The people and processes that can change this protocol under you.

Track record · no pool-level losses recorded · 5 protocol incidents · 36 audits

Vault operators

The roles that can actually move your deposit — the real principal-loss path.

Reaches deposit, no delayReaches deposit, timelockedCan't reach deposit

Role timelock 3 days to exit before owner/curator actions land

Owner2-of-3 multisig0x3f32…1bba

Curator2-of-3 multisig0x3f32…1bba

Sentinels1 · 1 multisigSafety role · veto only

Safety role, not an attack role: can revoke ANY pending timelocked curator change, instantly cut caps, and pull funds from adapters back to idle. Strictly risk-reducing — a captured sentinel cannot introduce new risk.

2-of-3 multisig0x3f32…1bba

Allocators1 · 1 multisigReaches deposit · instant

Moves funds between markets the curator has ALREADY approved — instantly, with NO timelock and no exit window. Cannot reach a brand-new market, but can concentrate you into an approved-but-stressed market or order withdrawals so you hit weak liquidity first.

1-of-3 multisig0xe4d5…2649

Audits

361 critical, 13 high findings logged

Certora· Dec 15, 2025report
Blackthorn· Dec 4, 2025report
Spearbit· Dec 4, 2025report
Blackthorn· Sep 15, 2025report

+32 more audits

Governance & control

Protocol-wide governance: bounded context, not the path to your deposit.

Governance owner5-of-912 chains0xcba2…9afa

Rewards owner3-of-70xf057…b2e9

Rewards updater3-of-50x5eb9…3297

Snapshot proposer3-of-80x6abf…f6a2

Governance contract0xcBa2…9AFa

Top-10 voter concentration100.0%

Quorum to pass500,000 MORPHO· top 10 hold 254,036.33

Voting token

MORPHO0x58D9…c2B2

Dependencies that can affect your deposit

7 things this pool relies on but doesn't control. Select one for its story.

Morpho Blue

oracles

Market Specific oracle

Every Morpho Blue market chooses an immutable oracle contract at creation; implementations can be Chainlink-like, exchange-rate, fixed-price, or custom. Failure modes: attacker-favourable price feed (covered in market-oracle-compromise) or price() revert / staleness blocking liquidations (covered in oracle-liveness-or-malfunction).

No quantified loss scenario references this dependency directly.

Updated Jul 30, 2026Sources:on-chain reads via @defillama/sdkhttps://hub.snapshot.org/graphqlhttps://api.morpho.org/graphql