Concerns have been raised regarding the stability of Sky's stUSDS vault, where a single borrower reportedly controls approximately $62 million of the $93 million total borrowed funds. This high concentration has resulted in 100% utilization of the vault, effectively pausing withdrawals for depositors. The borrower is paying a 28% APR, but funds remain inaccessible. Governance discussions have suggested discounted exits via Curve pools, which could value assets at roughly 70-80 cents on the dollar. [Update 1] Broader scrutiny has emerged regarding the Sky protocol's infrastructure alongside the liquidity issues. Market participants are specifically questioning the integrity of the Sky collateral oracle and the risk profile of lending pools where USDS is lent against Sky assets. These technical concerns regarding the oracle's reliability are adding to the growing caution among traders.