Osero, a startup developing stablecoin yield infrastructure spun out from Stablewatch, raised $13.5 million in a funding round led by Sky Ecosystem (formerly MakerDAO) to expand the adoption of Sky’s stablecoin products.
Plasma A Layer 1 blockchain developer and founder of Osero and Stablewatch, Piotr Saczuk, told The Block that this funding round was co-led by RedStone, The Rollup, Kairos Research, Maple co-founder Joe Flanagan, and USDT0 co-founder Lorenzo Romagnoli.
Sazuk said the fundraising process began in December last year and was completed in March this year. He noted that this round of funding was conducted entirely through Simple Agreement for Future Tokens (SAFTs). Sazuk declined to disclose the valuation.
Osero was incubated for a year by Stablewatch, a stablecoin yield data and risk advisory platform and one of the contributors to the Sky ecosystem. Stablewatch collaborates with Soter Labs, the provider of governance and operational management for the Sky ecosystem. Saczuk stated that Stablewatch itself has not pursued external funding and continues to operate on its own capital.
What is Osero?
Osero was established to provide infrastructure focused on stablecoin savings. Sky Ecosystem Stablecoin USDS (formerly DAI) and sUSDS, Sky’s yield-bearing stablecoin.
Sazuk said: "The platforms that will succeed over the next five years are those that can provide users with sustainable, transparent returns on their idle stablecoins without assuming asset management risk. Osero’s infrastructure makes this possible, and Sky’s balance sheet lends it credibility."
Osero is developing three products: Earn, App, and Foundry.
The Osero App is designed for retail and institutional users to access Sky Savings Rates. Through a simple and user-friendly web interface, Osero Earn enables platforms such as wallets, neobanks, custodians, and exchanges to offer users competitive Sky rates without directly managing stablecoin strategies or underlying assets.
The third product, Osero Foundry, focuses on helping asset managers, fund issuers, and structured product providers tokenize their products, among other methods. Saczuk declined to disclose the specific release timeline for these products.
Notably, $10 million of the $13.5 million raised by Osero has been allocated to meet reserve requirements.
Saczuk said: “Simply put, Osero’s $10 million in capital will serve as a buffer to protect users and Sky Protocol from potential losses.” He also noted that each deployment must undergo Sky Protocol’s risk assessment framework, which is inspired by Basel III banking regulations.
When asked why users would choose Osero instead of going directly through Sky, Saczuk said that Sky operates like a central bank, with distributors or sub-DAOs such as Osero handling distribution.
Saczuk said: "Each agent is optimized for a specific niche and marketing strategy, collectively expanding the total target user base for Sky ecosystem products without competing for the same users. Osero is the only Sky agent focused on extending the ecosystem into new areas through integrations with wallets, neobanks, exchanges, and more."
Regarding Osero’s business model, Saczuk stated that it will have two primary revenue streams: first, earning a share of revenue from each (USDS) and (sUSDS) balance through Osero Earn integrations and app distribution; second, capturing the spread between the yield generated from institutional asset allocations and the Sky benchmark rate paid on borrowed capital.
Saczuk said that Stablewatch, the development company behind Osero, currently has 13 employees and plans to hire personnel in credit strategy and business development over the coming months.
Sazuk added that no investors in this funding round have taken board, advisory, or observer seats.
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