sUSDS Project Update

Currently Interesting

Get Caught Up

Biggest Stories of 2025

• Annual State of Sky Ecosystem 2025 report released: The Sky Frontier Foundation published its inaugural annual report, disclosing that USDS/DAI supply grew 86% to $9.86 billion, annualized operational profits rose 24.4% to $168 million, and annualized SKY buybacks reached $102.2 million (roughly 7.63% of Sky's market cap). The report also flagged plans for four additional Sky Agents in 2026 and a Grove token launch in H1 2026 (December 17, 2025).
• Sky Agent Framework protocol roadmap shared: Rune Christensen outlined a multi-year roadmap including SkyLink (a standardized crosschain bridge), srUSDS (a senior risk capital token), SkyLink SSR Infrastructure (standardizing native sUSDS access across connected chains for instant, fee-free USDS-to-sUSDS conversions), a Hyperliquid buyback system, and a full rewrite of the stablecoin system called the Generator System, with delivery expected "over the course of 2026 and beyond" (November 13, 2025).
• Executive Proposal (Nov. 13, 2025): A governance vote covered the first stage of the Solana Bridge Migration, a 2.5 billion USDS debt ceiling increase for ALLOCATOR-OBEX-A, 21 million USDS in Genesis Capital to Launch Agent 4, and the deprecation of sUSDS and sDAI as SparkLend collateral by dropping supply caps to 1 unit and setting Max LTV to 0 (November 13, 2025).
• Executive Proposal (Nov. 27, 2025): This proposal launched StarGuard modules for Grove, Keel, and Obex, executed the October 2025 Monthly Settlement Cycle, and prepared Keel's Solana launch, including sUSDS 4626 deposit/withdrawal rate-limit updates and onboarding of Kamino and Drift vault integrations (November 27, 2025).
• Executive Proposal (Dec. 11, 2025): This proposal normalized the USDS-to-SKY Farm so SKY rewards to USDS holders match the Sky Savings Rate, raised the MKR-to-SKY Delayed Upgrade Penalty from 1% to 2%, and adjusted stUSDS risk parameters by lowering the Liquidation Ratio from 145% to 120% and reducing the SKY-backed OSM cap from 0.04 to 0.025 USDS (December 11, 2025).
• stUSDS launch (formerly yUSDS): The Sky team announced stUSDS, a risk capital token letting users earn a greater share of protocol rewards in exchange for higher system-risk exposure by providing segregated capital for SKY staking leverage. The rate was set at a temporary 40% APY during bootstrapping, with a planned reduction to 20% once utilization dropped below 100% (October 14, 2025).
• stUSDS deposits exceed debt ceiling: Rune Christensen confirmed that stUSDS deposits surpassed the debt ceiling for the Staking Engine (LSEV2-SKY-A), enabling additional borrowing capacity for SKY stakers and allowing the SKY staker borrowing rate to begin fluctuating based on demand (October 14, 2025).
• LSEV2-SKY-A Liquidation Ratio increase: An Executive Proposal raised the LSEV2-SKY-A Liquidation Ratio by 20 percentage points, from 125% to 145%, in preparation for the stUSDS launch. The same proposal set the Delayed Upgrade Penalty to 1% and executed the first monthly settlement cycle for Spark and Grove allocations (September 18, 2025).
• Executive Proposal (Aug. 7, 2025): This proposal was approved and made available for execution on August 11, 2025, covering onboarding and expansion actions across the Sky Protocol (August 7, 2025).
• Executive Proposal (Jun. 26, 2025): This proposal initialized SPK token farming, completed portions of the Phase 3 MKR-to-SKY migration, updated Smart Burn Engine parameters (reducing the Surplus Buffer threshold from 70 million to 50 million USDS), and increased the ALLOCATOR-BLOOM-A maximum debt ceiling from 100 million to 2.5 billion USDS (June 26, 2025).
• Executive Proposal (Feb. 6, 2025): A governance vote proposed reducing the Sky Savings Rate from 12.50% to 8.75% and the Dai Savings Rate from 11.25% to 7.25%, sweeping 406,451 DAI into the Surplus Buffer, and onboarding Fluid sUSDS to the Spark Liquidity Layer on Ethereum and Base (February 6, 2025).