Emperor Osmo
DeFi Research, Blockchain Metrics, Ex-Osmosis/Artemis
SKY looks undervalued at a $1.5B market cap, just 0.22x the $6.71B of USDS stablecoin supply it backs. Sky holds $5.6B in TVL, 3.7 times its token market cap, and USDS is about 2.2% of the $311B stablecoin market. Sky Ecosystem has completed its first burn of 2.86M SKY bought with 5% of monthly net protocol surplus, linking protocol performance to supply reduction. x.comÂ
Sky is not getting credit for USDS's growth and should reprice in time. USDS has grown from $1.3 billion in January 2025 to $8.14 billion, the third-largest stablecoin. Sky trades at 11.7x sales on $171 million annualized revenue and 8x trailing, its cheapest since the rebrand, though recent revenue fell as supply grew. Unless governance extends the reduced rate, buybacks should return to $300,000 a day by mid-June. Circle's recent conduct shows the need for another stablecoin, which USDS fills. x.com x.comÂ
Sky Ecosystem's financial growth through a difficult year for crypto makes SKY stand out against other DeFi protocols, including Uniswap and Aave. Gross protocol revenue rose about 50% year over year in September, and surplus remitted to reserves swung from a $17m shortfall to $7m. Sky reports its first Stage 2 burn of 2.86m SKY; a crypto bull market could bring more growth. SKY trades around its price last September. x.comÂ
Sky is still badly overlooked given about $90M of annual revenue and USDS supply on a fast track to $20B outstanding. Investors who like Hyperliquid should like Sky too. x.comÂ
Sky deserves more credit as a DeFi lender that survives crashes without socializing losses onto depositors. It has had zero lifetime bad debt since 2019, through Terra, 3AC, FTX and every ETH crash. Its Dutch auction liquidations find true market prices rather than paying a flat bonus and rebuild after failure, with SKY minting as a never-triggered last-resort backstop. RWA integration keeps revenue from vanishing when crypto dumps, a structurally different model from pool-based protocols. x.comÂ
Sky, formerly MakerDAO, is ready to break out of a W pattern that ranged for years, helped by improving fundamentals, buybacks on the way and a bullish DeFi season. A break above 0.1 would send it flying without a ceiling. Its redenomination also makes the coins mentally easier to buy. x.comÂ
Sky Protocol's SKY is undervalued because the market still has not caught up with its rebrand from Maker. It ranks 9th in revenue across all protocols, yet is not worth far more than Aave or Morpho. It buys back over 300K a day, 3x Aave, while Morpho returns nothing to holders. It will take time for people to realize how big and important it is. A vote just cut buybacks 10x for three months to focus on the protocol, a good decision. x.com x.comÂ
Tokens that fund buybacks from revenue gained another reason to catch a bid after SEC staff said buybacks alone don't make an otherwise non-security token a security once its protocol is live. More usage can mean more fees for buybacks: Hyperliquid fees buy HYPE, Raydium swap fees buy RAY, and Pump, Jupiter, PancakeSwap, Aster, NEAR, Pendle, Maple and Sky do similar. Uniswap burns UNI from pool fees; Lido's DAO buys LDO by accumulation. Buybacks must be big relative to market cap and new supply. … Show more
Sui's growing native stablecoin circulation can fund further ecosystem growth. USDsui, issued by Stripe's Bridge, reached a record $80 million in circulation, up 20.5%; revenue flowing to SUI is reinvested into the ecosystem, so more adoption means more resources for growth. x.comÂ
Circle faces pricing pressure because stablecoin infrastructure has low barriers to entry, which is why it stays an underweight with only small exposure. The risk showed when Circle fell 13% as Stripe, Coinbase and BlackRock backed a rival stablecoin, Open USD. x.com x.comÂ
Spark could become one of the stablecoin industry's giants if it builds a shared liquidity layer for all stablecoins, yet SPK sits at only a $50M market cap. Per Spark, its new Stablecoin FX Layer on Uniswap v4 lets stablecoins tap shared liquidity instead of isolated pools, starting with about $150M across USDS/PYUSD and USDS/USDT pools, and issuers can benefit from Spark's capital allocation. Success won't be easy, but if anyone can do it, it is Spark. x.comÂ
Mastercard benefits as cash payments keep moving to cards worldwide, making it a five-year buy at today's valuation. It keeps about 60 cents of each revenue dollar as operating profit; revenue grew 14% and EPS 21% last quarter. Stablecoins and bank-to-bank apps could bypass the network, but stablecoins might instead drive growth. x.comÂ
