Sky guts buybacks 87% after S&P rates its reserves on par with DRC bonds, Rune warns 'massive oil shock' is coming

Sky, the DeFi protocol formerly known as MakerDAO, has pushed through a governance proposal to slash daily SKY token buybacks by about 87% and redirect that cash flow into reserves backing its stablecoins USDS and DAI. The change cuts buybacks from roughly $300,000 per day to $37,600 per day for an initial three‑month period, freeing about $262,000 a day to reinforce the protocol’s “backstop” capital that supports its growing stablecoin supply. Sky governance framed the move as part of a broader capital‑scaling strategy to improve capital efficiency and strengthen the long‑term resilience of its stablecoin ecosystem. The shift comes as Sky’s liabilities have grown faster than its reserve buffer: combined USDS and DAI supply is now in the tens of billions, while the backstop capital has remained around $50 million, creating a widening gap between outstanding stablecoins and the capital explicitly set aside to defend their pegs. Founder Rune Christensen has argued the reduction in buybacks is a prudent precaution against mounting geopolitical and macroeconomic risks, including the war in Iran and what he has described as a coming “massive oil shock,” which could stress global financial markets and, by extension, stablecoin systems. Critics cited in the DL News report contend the move was overdue given the protocol’s expanding exposure, but Sky maintains it can still deploy additional tools if needed, such as issuing new SKY tokens or clawing back crypto capital from subsidiaries like Spark to protect USDS and DAI’s stability.

✨ AI-generated background, compiled from web sources — not editorial content.

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