Or it could be a terrible way to lose money if USDS drops below $1, in fact the consequences would be catastrophic for SKY governance tokens which would be sold off in an attempt to reclaim the $1 peg. In other words, after what happened with LUNA it is hard to trust any new stablecoin pair.
this is valid reason to worry about trusting any stablecoin that's not purely backed by real reserve and stop at just that.
so many stables in the market right now actually just minted from USDC or USDT 1:1, so basically we are having one more point of failure just for the sake of additional little yield.
I don't think it's worth it. that's why I also won't trust any stablecoin easily except the one that's already reliable for trading and so on.