Latest Sky (SKY) News Update

Deep Dive

1. $500M Mortgage Credit Line (24 February 2026)

Overview: Sky Protocol's stablecoin ecosystem has extended a $500 million credit facility to digital mortgage lender Better.com. The capital will fund conforming mortgages, with repayments coming from mortgage cash flows. A planned "Home Token" will package these assets on-chain for Sky, aiming to channel DeFi liquidity into traditional lending. Better.com expects this to lower its cost of capital by over 100 basis points and potentially double its monthly originations to over $1 billion in 2026.

What this means: This is bullish for SKY because it represents a massive, real-world use case for its stablecoin USDS, directly linking protocol revenue to a growing, institutional-scale asset class. It demonstrates Sky's pivot beyond pure-crypto collateral into regulated, yield-generating real-world assets (RWAs), which could significantly boost protocol fees and demand for SKY governance. (Kanalcoin)

2. Framework Ventures Strategic Stake (24 February 2026)

Overview: Crypto venture firm Framework Ventures has taken a 10% equity stake in Better.com for approximately $45 million. As part of the deal, Framework will help Better launch its DeFi tokenization initiative through the Sky protocol. This partnership provides both capital and expertise to structure the tokenized mortgage assets that will back the $500M credit line.

What this means: This is bullish for SKY because it brings deep-pocketed, specialized crypto-native investors directly into its ecosystem's expansion. Framework's involvement validates the model and provides crucial infrastructure support, de-risking the execution of Sky's ambitious RWA strategy and increasing the likelihood of its success and further institutional adoption. (Cointelegraph)

Conclusion

Sky is aggressively executing its vision to become the backbone of institutional DeFi, with two major announcements on the same day cementing a landmark move into tokenized mortgages. The protocol's trajectory is now tightly coupled with scaling real-world finance. Will this $500M facility be the template for a wave of similar RWA expansions?

Deep Dive

1. @marilyn100x: Sky's $116M buyback and revenue fundamentals bullish

"Why is $SKY up 21% in 3 months, while most tokens are down? Look deeper: > In the last one year, @MakerDAO has bought back $116M worth of $SKY tokens(~1.7B tokens) > $USDs supply is close to ATH($10.1B)... > $600M in projected annual gross revenue this year." – @marilyn100x (9.8K followers · 2026-02-12 11:07 UTC) View original post What this means: This is bullish for SKY because it frames its recent outperformance as a result of tangible, revenue-driven tokenomics—specifically aggressive buybacks and growing stablecoin adoption—rather than speculative hype.

2. @KyleReidhead: Sky's 57% monthly gain and valuation call bullish

"$SKY is now up 57% in the last 30 days... PE is still <9 and based on its 2025 growth, it should be >20. Which means even w/o earnings growth Sky should be 2x from here." – @KyleReidhead (15.4K followers · 2025-12-24 13:51 UTC) View original post What this means: This is bullish for SKY as it argues the token is fundamentally undervalued based on traditional metrics like P/E ratio, suggesting significant upside potential purely from valuation expansion.

3. @The_NewsCrypto: 2026 price target predictions for SKY mixed

"TODAY'S PRIME FOCUS: The future targets for⬇️ $SKY | Sky [@SkyEcosystem] Find out the predicted price target for $SKY in 2026 according to our analysts." – @The_NewsCrypto (29.7K followers · 2026-02-11 04:02 UTC) View original post What this means: This is neutral for SKY, reflecting speculative interest in long-term price trajectories. While it generates attention, the focus on future predictions can divert from current on-chain fundamentals and revenue metrics.

Conclusion

The consensus on SKY is bullish, centered on its unique deflationary mechanism funded by protocol revenue and its apparent decoupling from broader altcoin weakness. The narrative has shifted from pure speculation to a focus on cash flows, buybacks, and traditional valuation. Watch the weekly USDS amount allocated to SKY buybacks as a key indicator of ongoing fundamental support.

Deep Dive

1. Staking Rewards Overhaul (31 October 2025)

Overview: This governance vote changed the core staking mechanism. Instead of earning USDS, stakers now earn SKY tokens directly, and the protocol increased its daily token buyback budget.

The executive vote, which passed, introduced a new SKY→SKY staking rewards system. This required users to manually migrate their existing positions. Concurrently, the daily buyback amount was raised to 300,000 USDS, and 500 million SKY was allocated from the treasury to fund the new rewards. This shift aims to better align staker incentives with the long-term health of the protocol by directly distributing the native token.

What this means: This is bullish for SKY because it directly increases demand for the token through buybacks and ties staker rewards to the protocol's success. For users, it means potentially higher rewards paid in SKY, but they must actively move their staked tokens to the new system to benefit.

(Sky)

2. Delayed Upgrade Penalty Kick-Off (18 September 2025)

Overview: This update enforced a penalty on users who had not yet upgraded their old MKR tokens to SKY, a key part of the protocol's "Endgame" transition.

A governance spell executed on this date initiated a 1% penalty on all MKR-to-SKY upgrades. This penalty is designed to increase by 1% every three months, encouraging the remaining holders to complete the migration. As of 9 September 2025, approximately 63.25% of MKR had been upgraded, leaving about 359.3K MKR unconverted.

What this means: This is neutral to bullish for SKY. It pressures remaining holders to upgrade, which simplifies governance and could reduce selling pressure from old MKR tokens. For users, it means upgrading sooner avoids paying an increasingly higher fee.

(Upgrade Timeline)

3. Vault Parameter Adjustments (November 2025)

Overview: This was a routine risk parameter update for a specific vault (LSEV2-SKY-A), effectively closing it to new debt generation.

The change, recorded about three months ago, set the vault's debt ceiling to zero, down from 50 million. Other parameters like the liquidation ratio (125%) and stability fee (20%) were confirmed. This is a standard risk management operation to manage exposure and collateral types within the ecosystem.

What this means: This is a neutral, procedural update for Sky. It doesn't affect most users directly but demonstrates active risk management by the protocol's governance. It ensures the system's lending pools remain secure and properly collateralized.

(Sky Ecosystem)

Conclusion

Sky's recent code activity shows a mature protocol fine-tuning its economic engine, shifting from migration to optimizing staking rewards and risk parameters. How will these targeted tokenomics updates influence USDS adoption and protocol revenue in 2026?

Deep Dive

1. Powerhouse Production Release (Q1 2026)

Overview: This is the final development phase for the Powerhouse Decentralized Operations Platform, integrating core products like Fusion (transparency dashboard), Connect (RWA reporting), Switchboard (API), and Renown (identity). The roadmap shows it's 92% complete, involving production deployment on Sky's domains. It aims to provide a unified, professional-grade interface for ecosystem data and Real World Asset (RWA) reporting.

What this means: This is bullish for SKY because it enhances transparency and usability for institutional participants, potentially attracting more capital to the USDS stablecoin and its RWA-backed yield products. A polished platform reduces operational friction for ecosystem contributors.

2. Atlas Rulebook Editor Launch (Q1 2026)

Overview: This milestone focuses on building the first version of an editor and viewer for the Atlas, Sky's core governance rulebook. The roadmap indicates 50% progress, with key deliverables being a Notion database integration analysis and the creation of a document model. It seeks to make governance documentation interactive and easily accessible.

What this means: This is neutral to bullish for SKY because it streamlines community governance, which is central to Sky's decentralized model. Easier access to rules could improve participation and proposal quality, though the direct price impact may be gradual as it fosters long-term protocol health.

3. Powerhouse Spin-off Activation (2026)

Overview: This involves the research, legal structuring, and business modeling to spin the Powerhouse software suite into a fully independent "Ecosystem Actor." The roadmap shows 39% progress, with tasks like legal entity setup, tokenomics design, and securing new external customers. The goal is to create a self-sustaining business that serves the broader DeFi market.

What this means: This is bullish for SKY because a successful spin-off could diversify revenue streams beyond the core protocol and validate Powerhouse's technology in the open market. However, it carries execution risk around legal structuring and finding product-market fit outside the Sky ecosystem.

4. Ecosystem PM Consultancy Expansion (2026)

Overview: This ongoing initiative provides project management and strategic advisory support to Sky's core "Endgame" transformation. The roadmap indicates 56% progress, focusing on operational coordination and supporting key projects like the integration of Pointable AI. It ensures complex, cross-team initiatives stay on track.

What this means: This is neutral for SKY as it represents an operational cost center essential for executing the long-term vision. Efficient project management is crucial for timely delivery of other roadmap items, but its impact is indirect and already factored into the protocol's cost structure.

Conclusion

Sky's immediate roadmap focuses on finalizing core infrastructure (Powerhouse, Atlas) while laying the groundwork for ecosystem expansion through a Powerhouse spin-off. This dual path aims to solidify the protocol's operational base while exploring new growth vectors. How will the completion of these integrated platforms affect the onboarding of the next major "Star" or institutional partner?