Sky Ecosystem: June Financial & Operational Update

Welcome to the Monthly Financial & Operational Update. Each month, this briefing covers the protocol data, capital markets activity, and governance developments that matter to ecosystem participants.

Executive Summary

June 2026 reinforced Sky Ecosystem's position as one of the largest capital allocators in onchain finance, with $5.5B+ deployed by Sky Prime Agents, cumulative sUSDS yield distributions surpassing $250M since inception, Grove, one of the network's leading Prime Agents, announcing its native GROVE governance token and Spark coordinating the capital behind Robinhood’s Earn product for USDG, with USDS providing the underlying liquidity.

At the protocol level, Sky Protocol enters the second half of 2026 with a track record that few onchain protocols can match. USDS supply has grown 96.9% year-over-year to $10.04B. Additionally, collateral and revenue continue to grow year-over-year, while monthly Net Protocol Surplus grew from $9.71M in May to $10.81M in June. Year-over-year, sUSDS deposits grew 85% from $3.4B in June 2025.

Additionally, Sky Frontier Foundation will be leading initiatives for an ecosystem-wide cyber security hardening effort, the formal wind-down of the Genesis Capital model for funding Sky Prime Agents, and reducing ongoing operational costs; as well as separately executing a scheduled Core Council funding draw in line with the Treasury Management Function scope. More information regarding these actions is discussed below.

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Key Highlights:

• Protocol Revenue at Record Run Rate: Annualized gross revenue run-rate of $419.08M (based on the last three Monthly Settlement Cycles), making Sky Protocol one of the highest-revenue generating onchain applications. 
• $250M in Cumulative sUSDS Yield: Over $250M in yield has accrued to sUSDS holders since inception, through the Sky Savings Rate. 
• Sky Frontier Foundation Funding Draw and Organizational Consolidation: The Foundation has initiated a scheduled $14M Core Council draw and announced an ecosystem-wide consolidation of its operations.
• Sky Reserves at $82.5M in the month of June: 55% of the $150M Sky Reserves target. $33.7M accumulated since March's governance decision to redirect protocol surplus toward the solvency buffer.
• Grove launches the GROVE governance token: Grove, one of the Sky Prime Agents launched its governance token.
• Q2 2026 Surplus to Sky Reserves Swings Positive: Preliminary Q2 2026 results show $29.87M in Net Protocol Surplus remitted to Sky Reserves, up from a negative $8.15M in Q2 2025, on Gross Protocol Revenue of $107.35M (up 10.5% year-over-year). The full Q2 2026 Report is due at the end of July.

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Sky Protocol Financials & Onchain Metrics

Total Protocol Collateral grew 45.2% year-over-year. Total USDS Supply declined month-over-month from $11.14B in May to $10.04B in June, driven mainly by a decrease in total stablecoin supply across all stablecoins in June.

The revenue picture shows strong operating leverage. Gross Protocol Revenue grew 28.1% year-over-year, while Net Protocol Revenue grew 117.5% and Net Protocol Surplus 58%. The driver is a sharp reduction in Operating Expenses, which fell from $9.89M in June 2025 to $161K in June 2026, consistent with the organizational consolidation announced this month.

Direct Expenses (primarily Sky Savings Rate obligations) grew in absolute terms as the USDS supply scaled 96.9% YoY, but the total expense base remained essentially flat at $21.2M versus $22.28M one year prior.

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Sky Protocol Capital Buffers and the Execution of a Scheduled Sky Frontier Operational Funding

Sky Frontier Foundation is leading four significant ecosystem-wide operational adjustments, all in service of the protocol’s long-term stability and security. These will cover multi-month restructures of the way operations are run across all participants.

1. Sky Ecosystem projects (including Sky Frontier, Prime Agents and operational contributors) will be revamping their cybersecurity and opsec practices in line with the current standards. The Sky Frontier Foundation will be adopting a cybersecurity function into its operations to steward this revamp.
2. Sky Frontier Foundation is reducing its ongoing cost base in parallel to the above operational restructures, scaling back on external contributor resources and concentrating effort on the highest-impact workstreams.
3. Genesis capitalization for new Sky Agents was sunset, which means every remaining protocol expense will be rule-bound and capped as a fixed percentage of revenue. Every significant outflow will either be governed by the Treasury Management Function (TMF) or fall within the bounded Security and Maintenance allocation. 
4. Consistent with the Security and Maintenance allocation outlined above, Sky Frontier Foundation is executing a $14M scheduled draw of operational funding from the Core Council, in line with the previously agreed budget and the rules of the TMF. This draw does not constitute a new or additional protocol expense. For further detail on the Foundation’s operations and funding, see the Q1 2026 Transparency Report.

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Capital Markets Activity

$250M in Cumulative sUSDS Yield Distributions

As of June 29, over $250M in total yield has accrued to sUSDS holders since the Sky Savings Rate's inception, on top of a further $190M that have been distributed through the legacy Dai Savings Rate. $17.49M was accrued through sUSDS in the month of June, with sUSDS distribution growing at a rate of 22.38x over the first two quarters of 2026. This milestone and the continued delivery of yield paid to holders represents one of the most distinct measures of Sky Protocol’s capacity to deliver at scale and highlights the compounding effects of the recent growth of sUSDS supply.

Sky Agent Network: Institutional Capital Breakdown

Sky Ecosystem ranks among the largest capital allocators in onchain finance. Over $5.5B has been deployed through Sky Protocol by Sky Agents into instruments and platforms operated by some of the most recognized names in global asset management like Janus Henderson ($1.24B), BlackRock/BUIDL ($713M), Anchorage ($260M), PayPal ($236M), Securitize ($102M), and Galaxy ($27M). Each of these allocations can be monitored in real time on the Sky Protocol Financial Dashboard. The scale of these deployments throughout the ecosystem shows that Sky's institutional positioning has moved well beyond early adoption into meaningful capital deployment at scale. These figures describe protocol and ecosystem activity, not any sUSDS holder claim on specific Agents, instruments, or revenues.

Grayscale Ranks Sky Protocol Fourth by Onchain Revenue

A Grayscale analysis published in June ranked Sky Protocol fourth among the highest-revenue onchain applications globally, attributing $248M in trailing 12-month protocol revenue and assigning a 5x trailing revenue multiple to the SKY token. For context from Sky Frontier Foundation reporting: 2025 Gross Protocol Revenue was $338M; Q1 2026 Gross Protocol Revenue was $123.79M ; 2025 Net Protocol Surplus was $53M; Q1 2026 Net Protocol Surplus was $46.04M. With a potential CLARITY Act vote upcoming, Grayscale believes many high revenue-generating protocols, including Sky Protocol, stand to benefit from the expected growth in onchain activity with passage of the CLARITY Act.

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Governance & Risk Management

Sky Reserves Reach $82.5M in the month of June

Sky Reserves closed the month of June at $82.5M, representing 55% of the $150M floor target. $33.7M had accumulated since March, when governance redirected the majority of protocol surplus toward the solvency buffer rather than near-term token distributions. The full reserve breakdown is publicly accessible in real time at financial.skyeco.com/capital-management.

SKY Buyback Program Crosses $120M Cumulative

Sky Protocol's programmatic buyback mechanism purchased 18.6M SKY tokens on the open market over the trailing 30 days, deploying 1.14M USDS in the process. The program has now crossed $120M in cumulative deployments since its launch in February 2025.

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Operational Updates & Integrations

Spark Powers Robinhood’s USDG Savings Product

Spark, the largest Sky Agent by collateral, is coordinating the capital behind Robinhood’s newly launched Earn product for USDG, the stablecoin of the Global Dollar Network. In a post published July 1, Spark outlined their role: once capital is allocated to the Spark market, the Spark Liquidity Layer deploys it across governance-approved strategies within a defined risk framework. With USDS providing the underlying depth, this integration extends the Sky Agent Network into Robinhood’s retail customer base and adds to Spark’s existing work across PayPal’s PYUSD and Coinbase’s USDC.

Grove launches the GROVE governance token

Grove, one of the leading Prime Agents with $2.66B+ TVL, announced its native governance token, GROVE. A portion of GROVE supply will be allocated to the Sky Ecosystem and accessible through the Sky.money Ecosystem Rewards module. Grove's token launch marks a meaningful step in the maturation of the Sky Agent Network, as Prime Agents begin establishing independent governance structures while remaining anchored to the Sky Ecosystem.

Spark Launches Shared FX Liquidity Layer on Uniswap v4

Spark launched a shared liquidity network on Uniswap v4, seeding it with $150M in stablecoin liquidity. The infrastructure provides a common pool for stablecoin issuers rather than requiring each issuer to build its own liquidity independently. USDS is positioned at the center of routing, with growth across the shared network designed to compound demand for USDS. This is the first step towards building the necessary infrastructure for a multi-issuer stablecoin economy. By seeding $150M across USDS/PYUSD and USDS/USDT pools, Spark is building the liquidity rails before the demand from banks and fintech arrives. In its first 3 days live, the Stablecoin FX Layer has processed over $70M in volume (as of June 30). 

Fixed Yield on sUSDS Launched via Pendle Finance

The Sky Protocol interface provider Sky.Money and Pendle Finance introduced access to Pendle FInance’s fixed-yield product for sUSDS, with a maturity date on November 26, 2026. Users supply USDS, USDC, or sUSDS into the Pendle market and lock in a fixed rate at entry, receiving that rate upon holding to maturity. $44.1M in TVL in the product's first month signals early institutional demand for fixed-rate, crypto-native yield instruments benchmarked to the Sky Savings Rate.

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Q2 2026 Report Preview

Ahead of the full Q2 2026 Report at the end of July, preliminary results point to another quarter of surplus generation. Net Protocol Surplus remitted to Sky Reserves reached $29.87M in Q2 2026, a swing to positive from a negative $8.15M in Q2 2025, when revenue distributions exceeded net revenue. The improvement reflects both higher revenue and a lighter distribution load during the quarter.

Gross Protocol Revenue was $107.35M, up 10.5% year-over-year from $97.15M, and Net Protocol Revenue grew to $40.09M from $32.04M, a 25% increase. The net margin expanded to 37.3% from 33.0%, and Protocol Collateral stood at $12.32B at quarter-end, up from $8.47B a year earlier. Across the first half of 2026, the protocol generated $231.66M in Gross Protocol Revenue and remitted $55.18M to Sky Reserves at a 43.5% net margin.

The quarter shows operating leverage taking hold. Revenue rose while distributions eased, so more of each dollar reached the bottom line. With collateral up sharply over the same period, Q2 reflects a protocol expanding its balance sheet and funding its reserves from operations.

Figures are preliminary and unaudited pending the final Q2 2026 Report. Data sourced from financial.skyeco.com.

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Looking Ahead

Q2 2026 Report and Quarterly Insights Call Scheduled for End of July

The Sky Frontier Foundation will publish the full Sky Ecosystem Q2 2026 Report at the end of July, presenting the complete quarterly financial and operational results. Alongside it, the Foundation will host its second Quarterly Insights Call to walk ecosystem participants through those results. The call will be live, and participants can pre-submit their questions through the  form here. Submissions close July 25.

In the next update we will discuss the Q2 2026 Quarterly Report due to be published in July, track the continued early growth of Fixed Yield on sUSDS in partnership with Pendle Finance, monitor Sky Reserves as they approach the Protocol's floor target, and cover any further capital markets or Sky Agent Network activity through July.

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Contact

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The content provided in this newsletter is for informational and educational purposes only and does not constitute legal, financial, investment, tax, or other advice. No part of this document 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, nor to form the basis of any investment or other decision. Views expressed are as of the issue date, based on the information available at that time, and may change based on market or other conditions. The content does not purport to be a complete description of the markets or developments referenced herein. The information has been obtained from sources considered to be reliable, but we do not guarantee its accuracy or completeness. All protocol data sourced from financial.skyeco.com unless otherwise noted.