Morpho V2 Vault Attracts $18M in USDS Within 24 Hours of Launch

Sky Protocol has established its decentralized buyback mechanism through the Sky Atlas, following approval by Sky Ecosystem Governance. **Key Details:** - The buyback parameters are formally documented in the Sky Atlas governance framework - Implementation follows community governance approval process - Full technical specifications available in the official documentation For complete details on the buyback mechanism and parameters, visit: [Sky Atlas Section A.2.4.1.4.2.1](https://sky-atlas.io/#A.2.4.1.4.2.1)

Sky Protocol purchased 130 million SKY tokens in January using 8.5 million USDS. The buyback program has now spent over 106 million USDS total since launching in February 2025. **Key figures:** - January buyback: 130M SKY tokens - Cost: 8.5M USDS - Total program spending: 106M+ USDS The protocol has been consistently buying back tokens, with previous weeks showing purchases of approximately 30M SKY tokens for around 1.9M USDS each week.

Over $300 billion in stablecoins currently earn no yield for holders, representing a significant opportunity cost in an environment where traditional savings accounts offer 4-5% returns. **USDS has emerged as the world's largest yield-generating stablecoin**, addressing this gap by providing returns directly to holders through non-custodial savings. The conversation at the New York Stock Exchange highlighted this market inefficiency and the growing demand for yield-bearing alternatives to traditional stablecoins. **Key Points:** - Traditional stablecoins offer no yield despite substantial market cap - USDS leads the yield-generating stablecoin category - Growing recognition that yield-bearing options are becoming essential for stablecoin competitiveness This development reflects a broader shift toward "yieldcoins" that combine stablecoin convenience with Treasury-backed returns, offering users better alternatives to both bank accounts and non-yielding stablecoins.

The Sky Frontier Foundation has launched **Sky Ecosystem Insights**, a new research platform providing independent analysis of the Sky Ecosystem. **What's New:** - Dedicated account (@SkyEcoInsights) for research-style analysis - First report released: Sky Ecosystem Q4 Update and 2026 Outlook - Analysis based solely on publicly available information **Report Coverage:** - Full-year 2025 performance review - Financial metrics and ecosystem fundamentals - Onchain data analysis - 2026 outlook and scenario-based projections The foundation emphasizes that projections are assumptions-based, not guarantees. The main @SkyEcosystem account will continue its regular coverage of ecosystem updates and product launches. [Read the full report](https://insights.skyeco.com/insights/sky-ecosystem-q4-update-and-2026-outlook-summary)

Morpho has launched two new products for Sky's USDS ecosystem: **USDS Vault** - Now live on Ethereum - Accessible at [app.morpho.org](https://app.morpho.org/ethereum/vault/0xf42bca228D9bd3e2F8EE65Fec3d21De1063882d4/skymoney-usds-risk-capital) **stUSDS/USDS Market** - Enables leveraged stUSDS positions - Users can supply stUSDS, borrow USDS, and loop back into stUSDS - Increases exposure to stUSDS yields - Available at [app.morpho.org](https://app.morpho.org/ethereum/market/0x77e624dd9dd980810c2b804249e88f3598d9c7ec91f16aa5fbf6e3fdf6087f82/stusds-usds?subTab=activity) **Launch Incentives** - 30,000 USDS allocated for USDS suppliers during launch week The integration allows stUSDS holders to amplify their positions through borrowing and re-staking strategies.