Sky Protocol Posts ₱7.59 billion ($124 million) Revenue as Token Slides
Sky Protocol, the DeFi lender that launched as MakerDAO in 2017, swung to a ₱2.81 billion ($46 million) protocol surplus in Q1 2026 after posting a ₱825.93 million ($13.5 million) net loss in the same quarter last year. The governance token fell 2.4% after the results dropped Wednesday despite beating nonprofit estimates by ₱795.34 million ($13 million).
Key Takeaway
Sky posted record revenue but token holders wait as protocol builds a $150 million safety buffer first.
Sky Protocol posted $124 million in gross revenue for Q1 2026, the highest quarterly result since launching as MakerDAO in 2017.
Net revenue hit $61 million with a protocol surplus of $46 million, a sharp turnaround from the $13.5 million net loss Sky recorded in Q1 2025. The $13 billion lender's gross revenue exceeded a nonprofit estimate by $13 million.
The governance token fell 2.4% after the Sky Frontier Foundation released the results Wednesday. Sky trades at a $2 billion market cap according to CoinGecko, but investors seem focused on the capital restructuring that's limiting token distributions.
Sky Governance approved a capital restructuring on March 14 aimed at building a $150 million solvency reserve fund. The foundation said Sky is prioritizing long-term resilience over short-term distributions, with reserves currently at $50.90 million. Buyback and distribution rates will scale back up as the reserve fund approaches its target.
The foundation credited growing institutional demand for risk-adjusted yield onchain as the driver behind higher-than-expected growth in USDS, Sky's successor stablecoin to DAI. Feedback from the Sky Agent Network showed allocators conducting more rigorous due diligence than in previous quarters.
Sky engaged S&P Global Ratings and Fitch as part of the institutional push. USDS remains a decentralized stablecoin without a central issuer that can freeze individual tokens, distinguishing it from centralized alternatives like USDT or USDC, with the protocol building toward the $150 million solvency target set on March 14.
This article was written based on reporting from Dlnews.
