Decentralized stablecoin protocol Sky Protocol delivered outstanding results in the first quarter of 2026. According to its latest financial report, the protocol generated a record $123.79 million in revenue, representing a 28.9% increase year-over-year and a 56.8% rise from the previous quarter. The strong performance was driven by robust lending activity and rapid expansion of stablecoin supply.
Net Surplus Near Full-Year 2025 Level
The net surplus for the quarter reached $460.4 million, almost matching 92.4% of the entire net surplus recorded in 2025. Total collateral backing the protocol grew to $13.03 billion, further cementing its dominance in the decentralized finance (DeFi) space.
Skyrocketing USDS and sUSDS Supplies
The supply of Sky's core stablecoin USDS surged 67.9% year-over-year to $11.7 billion, reflecting strong market demand for decentralized stablecoins. Meanwhile, the yield-bearing stablecoin sUSDS reached a supply of $6.49 billion, making it the largest yield-bearing stablecoin globally. Both stablecoins have maintained stable prices, with USDS edging up 0.02% and sUSDS flat.
Capital Restructuring Plan Approved
To further enhance protocol safety, Sky governance approved a capital restructuring plan on March 14 to create a $150 million solvency reserve. This initiative aims to mitigate liquidity risks under extreme market conditions and boost user confidence. Analysts note that Sky Protocol's robust growth reflects a broad DeFi recovery from the 2025 downturn, with the stablecoin sector attracting increasing institutional interest.