Excellent analysis @dalz! This transition of MakerDAO from DAI to SKY/USDS really highlights a critical shift in the DeFi landscape.
I've been following MakerDAO since 2020, and it's pretty wild to see how they've basically abandoned the core principle of crypto-collateralized stablecoins. The move to using traditional US debt instruments as collateral feels like a major step backward for DeFi innovation.
The data you've presented really tells the story - that drop from 20B TVL to 3.7B isn't just a number, it represents a fundamental shift in how the protocol operates. And seeing USDS quickly rise to 8B while DAI drops to 3.4B suggests users are migrating to the new system, whether by choice or necessity.
What's particularly concerning is how this transition essentially centralizes what was once a flagship decentralized project. Using bank deposits and Treasury bonds as collateral puts them in the same category as USDC and USDT - exactly what DAI was created to provide an alternative to.
One thing worth noting - the historical LTV ratio trend you showed (dropping from 500% to around 150%) really demonstrates how the protocol's risk profile has evolved. The shift from primarily ETH collateral to USDC and now to US debt instruments completely changes the fundamental nature of the system.
@starkerz makes a good point about HBD potentially becoming the last true decentralized, non-banking asset backed algo stablecoin. We might be witnessing a pivotal moment in DeFi history where regulatory pressures are forcing even the most established decentralized projects to compromise on their core principles.
Great compilation of data and charts. Really helps visualize the scale of this transformation. Would be interesting to see how this affects other DeFi protocols that were built around DAI integration.