How to Spot sUSDS Risks with Signals
Identify and monitor risk factors in your SUSDS holdings with health signals.
sUSDS Risk Overview
sUSDS is the new version of sDAI, offered by Sky which offers a higher yield. sUSDS represents USDS deposited into and earning the Sky Savings Rate. The Sky Protocol is a decentralised protocol developed around the USDS stablecoin. It is managed by Sky ecosystem governance. The Sky Protocol features Sky tokens (USDS, SKY, DAI, MKR), the Sky Savings Rate, Sky Token Rewards and, soon, Activation Token Rewards and SkyLink.
Understanding sUSDS Risk Signals
Fundamentally provides 7 types of risk signals to help you monitor your sUSDS (SUSDS) position. These signals combine your Focus score, market timing (CBBI), and position sizing to alert you when conditions warrant attention.
Risk Signals for sUSDS
- Concentration Risk: Your SUSDS position exceeds your bet size range
- Liquidity Risk: Your position is large relative to daily trading volume
- Volatility Risk: Large price swings combined with meaningful position size
- Focus-Timing Mismatch: High Focus but unfavorable market timing
- FOMO Risk: Good timing but low Focus score
- Cleanup Candidate: Very small position with low Focus
- Overweight Poor Timing: Above bet size range during unfavorable conditions
Volatility Context
sUSDS currently exhibits stable price action with a 24-hour volatility of 0%. As a stablecoin, SUSDS is designed to maintain price stability, but this doesn't eliminate all risks such as de-pegging events or protocol vulnerabilities.
How Fundamentally Monitors sUSDS Risks
View Your Signals
7 Risk SignalsOpen the Signals page to see which risk signals are active for sUSDS. Each signal tells you specifically what risk is present in your SUSDS position.
Understand Each Signal
Clear ExplanationsConcentration Risk triggers when SUSDS exceeds your bet size range. Volatility Risk signals you to large price swings. Focus-Timing Mismatch warns when market conditions don't favor your position.
Take Informed Action
You DecideUse the Investment Calculator to determine how much sUSDS to rebalance if needed. Signals are informational—you decide what action to take based on your strategy.
Concentration Risk
Signals when your SUSDS position exceeds the bet size range based on your Focus score.
Liquidity Risk
Monitors when your sUSDS position is large relative to daily trading volume.
Volatility Risk
Tracks SUSDS price swings and signals when volatility affects your position.
Timing Signals
Combines your Focus for sUSDS with CBBI market timing to identify mismatches.
Frequently Asked Questions
Fundamentally monitors 7 risk signals for sUSDS: Concentration Risk, Liquidity Risk, Volatility Risk, Focus-Timing Mismatch, FOMO Risk, Cleanup Candidate, and Overweight Poor Timing. These combine your SUSDS Focus score, position size, and market conditions.
Stablecoins like sUSDS can lose their peg during market stress or reserve issues. Monitor SUSDS reserve composition, redemption mechanisms, and historical peg stability when evaluating concentration risk.
Stablecoins like sUSDS face de-peg risk rather than typical volatility. Monitor SUSDS reserve health, audit reports, and any deviation from the $1 peg. Concentration Risk still applies if you hold too much in a single stablecoin.
Monitor sUSDS Risk Signals
Stay informed about risks in your portfolio with Fundamentally's signal system.