Grand Cayman, Cayman Islnads, January 29th, 2026, Chainwire

Following a landmark year of 74% supply growth in USDS, Sky Ecosystem’s stablecoin is now the third-largest stablecoin and the largest yield-generating stablecoin. The SFF is estimating Protocol Profits to grow 198% YoY to $158M in 2026, based on its calculations leveraging historic onchain data.

Sky Frontier Foundation (“SFF”), an independent organization that supports research, education and ecosystem development for the Sky Ecosystem, today published its Sky Ecosystem Q4 Update and 2026 Outlook regarding the Sky Protocol.

“2026 is about turning it on at full capacity,” said Rune Christensen, Director of SFF. “With a streamlined cost structure and a diversified pipeline of real-world yield, we believe Sky is one of the definitive destinations for institutional-grade, highly competitive risk-adjusted return on USD-denominated capital.”

The Sky Stablecoin Engine: Scaling Onchain Credit and Yield

The 2026 fiscal year marks Sky’s deliberate and comprehensive transformation into a robust economic powerhouse. The ambitious 2026 projections are anchored by the previous year, when USDS supply reportedly surged 74% to $9.2 billion.

In 2026, contributors to the Sky Ecosystem are expected to focus on expansion. With a dedicated growth engine for partnerships and a diversified yield pipeline, the SFF believes Sky Protocol is positioned to capitalize on the rising prominence of stablecoins across global policy and capital markets.

Sky Frontier Foundation 2026 Outlook

• Revenue and Profitability Estimates: $611.5 million in Gross Protocol Revenue (81% YoY growth) and $157.8 million in Protocol Profits (198% YoY) expected for 2026.
• USDS Market Scaling: Circulating supply is estimated to nearly double to $20.6 billion with a substantial strategic increase in USDT liquidity allocation coming in Q1.
• Sky Agent Network Expansion: The projected strategic launch of up to 10 new Sky Agents, beginning in Q1 with the potential deployment of a new Sky Agent providing highly efficient structured credit solutions backed by stablecoin liquidity.

Sky Protocol’s current financial trajectory, as analyzed by SFF in the Sky Ecosystem report, is characterized by the stabilization of foundational costs against an expanding revenue base.

“By operationalizing our financial reporting, we have proven that decentralized protocols can exceed the transparency standards of traditional capital markets,” said Christensen. “I invite our community and the broader financial industry to join us as we detail how we are scaling this infrastructure to become the premier global destination for yield on the dollar.”

About USDS 

Issued by the Sky Ecosystem, USDS is the largest yield-generating stablecoin, designed to provide a risk-adjusted return on USD-denominated capital through diversified onchain and real-world asset yield. USDS is the upgraded version of DAI and with over $9.2 billion in supply collectively, it is the third-largest stablecoin and the largest yield-generating stablecoin globally. Issuance, redemption, governance, reserve management, and parameter changes are executed by decentralized smart contracts and community governance processes that are independent of SFF.

About Sky Frontier Foundation

Sky Frontier Foundation is an independent organization that serves as the innovation and acceleration arm of Sky Ecosystem. SFF supports new Sky Agents and funds breakthrough technologies to drive the next generation of decentralized finance.

Legal Notice and Forward-Looking Statements

This press release summarizes information from the Sky Ecosystem Q4 Update and 2026 Outlook report, which contains additional information, disclosures and disclaimers which are expressly incorporated by reference. The analyses, characterizations, and views reflected in this press release and the referenced report are those of Sky Frontier Foundation (“SFF” or “the Foundation”) as of the date of publication, are judgment-based, reflect SFF’s interpretation of publicly available on-chain and market data, and may change without notice. They do not constitute legal opinions, regulatory determinations, or guarantees of outcome, and should not be relied upon as a substitute for independent analysis or professional advice.

This press release is provided for general informational purposes only and does not constitute legal, financial, investment, tax, or other advice. Nothing in this press release is intended as, or should be construed as, an offer, solicitation, or recommendation to buy or sell any token, security, or other financial instrument, or to engage in any transaction or strategy. SFF is an independent entity and does not control the Sky Protocol or its DAO governance processes; decentralized governance decisions and protocol outcomes are outside SFF’s control, and no statement in this press release should be interpreted as a commitment by the protocol’s community or governance. SFF does not issue, custody, redeem, manage reserves for, or guarantee USDS and has no authority to bind the Sky Protocol or its governance.

Certain information in this press release and the referenced report may be derived from third‑party sources (including publicly available blockchain and market data). SFF has not independently audited or verified such information and makes no representation or warranty as to its accuracy, completeness, timeliness, or reliability. Discussion of legal or regulatory matters (including references to any pending or proposed legislation) reflects SFF’s interpretation as of the publication date and should not be relied upon as legal guidance; the regulatory treatment of digital assets remains uncertain and subject to change.

This press release contains forward‑looking statements (including statements regarding future plans, expectations, or anticipated outcomes) that are inherently uncertain and not guarantees of future performance. Actual results and events may differ materially due to risks and factors outside SFF’s control, including market volatility, regulatory developments, and decisions made through decentralized governance. Readers are cautioned not to place undue reliance on forward‑looking statements, and SFF undertakes no obligation to update them. All estimates and projections reflect SFF’s subjective analysis and methodological judgments on which reasonable analysts may differ; readers are encouraged to conduct their own independent analysis of publicly available data.

All information is provided “as is” without warranty of any kind, and to the maximum extent permitted by law, SFF disclaims liability for direct or indirect losses arising from the use of, or reliance on, this press release or the referenced report. No fiduciary duties are owed to any person by virtue of this communication.

Media & Analyst Inquiries

Members of the press and research community can contact the Sky Frontier Foundation at [email protected]

Sky Frontier Foundation

Contact

Sky Frontier Foundation
[email protected]