Sky Ecosystem Q1 2026 Quarterly Report

Summary

The Sky Ecosystem Q1 2026 Quarterly Report, published by Sky Frontier Foundation, details the strongest quarter on record for Sky Protocol. Gross Protocol Revenue reached $123.79M, up 28.9% YoY and 56.8% QoQ, the highest in protocol history. Net Protocol Surplus of $46.04M reached 92.4% of full-year 2025 Net Protocol Surplus in a single quarter, while Protocol Collateral grew 49.1% YoY to $13.03B and USDS supply expanded 67.9% YoY to $11.70B. sUSDS, now the largest yield-generating stablecoin by supply, crossed the $5B milestone in February and ended the quarter at $6.49B.

Q1 results exceeded SFF's 2026 base case across every key metric, validating the thesis that institutional demand for risk-adjusted yield onchain is accelerating. Net Protocol Revenue margin expanded to 49.06% from 30.24% in Q4 2025. On March 14, Sky Governance approved a capital restructuring that prioritizes building a $150M solvency reserve, the Sky Reserves, over near-term buybacks and distributions, reinforcing the protocol's capital buffer for institutional-scale capital inflows. Looking ahead, Sky Frontier Foundation maintains its 2026 outlook unchanged. The Q1 outperformance, combined with the new capital framework and continued expansion of the Sky Agent Network into diversified collateral sources, positions Sky Protocol to enter the next phase of growth as a leading institutional destination for risk-adjusted yield on USD capital.

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Submit a Question for the Q1 Insights Call

‍Sky Frontier Foundation is hosting a call on May 12 to answer questions on the Q1 2026 results. Submissions close May 10.

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