Sky Protocol Approves 70 Million USDS Initiative to Build Agent Capital Allocation Network

Sky Protocol (formerly MakerDAO) announced on March 15 that the Sky Governance Committee has approved the distribution of approximately 70 million USDS from Genesis Capital to support the remaining launch phase of Sky Agent, a significant milestone in building an independent capital allocator network and supporting the Sky Savings Rate.

Complete Plan for the 70 Million USDS Distribution

This Genesis Capital distribution involves four different Sky Agents:

Keel: Allocated 10 million USDS

Amatsu (New Executive Agent): Allocated 25 million USDS

Ozone (New Executive Agent): Allocated 25 million USDS

Unpublicized Sky Agent: Allocated 10 million USDS

All fund transfers will be completed through an execution vote by March 26. Notably, after this distribution, Genesis Capital’s overall fund allocation will only have one final transfer remaining. Before the tokens are officially launched, these funds remain under protocol control, stored in an independent sub-account managed by SKY Governance; once each Agent launches its own tokens, the funds will be transferred into the respective Agent’s operational treasury.

Sky describes this distribution as “the next major step in building an independent capital allocator network to support the Sky Savings Rate,” based on the logic of managing the protocol’s funds in a decentralized manner through multiple Agents with different strategies.

Buyback Reductions and the Iran War: Rune’s Macro Perspective

Concurrent with the Agent funding, there was a starkly opposite move—significantly reducing the protocol’s own market buyback efforts. According to reports, Sky Digital Cooperative voted on March 12 to cut the daily buyback amount from $300,000 to $37,600, an 87% reduction, for a period of three months.

Founder Rune Christensen expressed deep concern about macroeconomic conditions on Discord: “The world is facing a large-scale oil crisis, and most financial infrastructure will collapse.” This statement directly links the escalation of the Iran conflict to Sky’s financial decision-making.

Critics responded. Some believe the decision is too late—Sky continued its buyback program despite shrinking additional resources supporting its stablecoins USDS and DAI, which are now at a relatively low reserve of about $50 million.

Sky’s Strong Supply Growth Momentum

Despite the buyback reduction, Sky’s stablecoin market performance shows strong demand. Over the past 30 days, USDS supply has grown by over 22%, reaching approximately $7.9 billion; DAI supply increased by 2%, reaching about $4.5 billion. Combined, they form a stablecoin market cap of over $12 billion, reflecting ongoing market demand for Sky’s ecosystem.

Frequently Asked Questions

Q: What is the Agent architecture of Sky Protocol? Why is Genesis Capital needed?
Sky Agents are independent capital allocators within the Sky Protocol ecosystem, responsible for deploying protocol funds into different yield strategies to support the Sky Savings Rate (USDS deposit yield). Genesis Capital is the initial funding provided at the start of each Agent’s lifecycle, offering liquidity before the Agent establishes its own tokens and operational treasury. The goal of this architecture is to create a decentralized, multi-Agent managed capital allocation network, rather than relying on a single centralized strategy.

Q: Does an 87% reduction in buybacks mean Sky is in financial trouble?
Based on current information, this reduction appears to be a proactive risk management measure rather than a sign of financial distress—Rune Christensen explicitly described it as a conservative response to macroeconomic uncertainty. However, critics’ concerns are valid: with stablecoin reserves supporting USDS and DAI at only about $50 million, continued reduction in protective buybacks could lower the protocol’s buffer against market shocks. Ultimately, safety depends on the quality and diversification of the underlying collateral assets backing USDS and DAI.

Q: What is the relationship between Sky Protocol and MakerDAO?
Sky Protocol is the new name for MakerDAO after its rebranding in 2024; both refer to the same protocol. MakerDAO is one of the earliest and largest decentralized stablecoin protocols in DeFi, with a long history of issuing DAI; USDS is a newly launched stablecoin following the rebranding. The governance token was renamed from MKR to SKY, but the core protocol logic remains consistent.