Sky tokens have been under pressure recently, falling approximately 25% since hitting $0.087 in April. The price is currently hovering around $0.065, and the market is watching to see if this level can hold. If selling pressure continues, the next downside target could be around $0.060.
Vault management changed to rule-based allocation
At the protocol level, Sky is moving forward with internal fund management adjustments. The Sky Protocol has completed the "Genesis Capitalization" phase and launched a simplified vault management feature called Alchemist.
The change in this mechanism lies in the fact that protocol spending no longer relies primarily on discretionary spending, but is instead allocated according to a certain percentage of revenue and automatically invested in security spending, reserve reserves, staking rewards, and the Smart Burn Engine. The article argues that this approach makes revenue flow clearer and the long-term buyback mechanism more predictable.
Savings interest rates have been lowered to 3.60%.
However, the adjustment came at a cost. On May 26, the Sky Savings Rate was lowered to 3.60%. This change may dampen the participation of some users chasing high stablecoin yields, especially in a highly competitive market environment.
In the short term, this also explains why the expansion of the protocol's fundamentals has not directly translated into support for the token price. The market is more focused on short-term momentum than on medium- to long-term structural optimization.
USDS and collateralized lending continue to grow.
Despite the token price pullback, core data within the Sky ecosystem continues to expand. Over the past 90 days, USDS circulating supply has fluctuated between approximately $9.3 billion and $11.8 billion, while Sky reserves have risen from approximately $37 million to over $81 million.
Meanwhile, sUSDS deposits reached $6.38 billion, and SKY staking exceeded $1.16 billion. These figures indicate that the protocol's fund accumulation and user engagement continue to increase.
- The circulating supply of USDS is approximately $9.3 billion to $11.8 billion.
- Sky's reserves rose from approximately $37 million to over $81 million.
- sUSDS deposits reached $6.38 billion.
The article also mentions that Sky is shifting its growth focus more towards institutional funding, emphasizing risk-adjusted returns, rather than primarily relying on high-yield strategies driven by retail users. At the current stage, Sky's price remains caught between ecosystem expansion and short-term weakness.
