SP-BEAM: New Core Tech for Sky Governance

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 **Coverage Areas:** - Quarterly and annual ecosystem performance reports - Financial metrics and onchain data analysis - Scenario-based projections (not guarantees) The inaugural report analyzes Sky Protocol's full-year 2025 performance and provides outlook for 2026. The main Sky Ecosystem account will continue covering product launches and updates separately. [Read the full report](https://insights.skyeco.com/insights/sky-ecosystem-q4-update-and-2026-outlook-summary)

Sky Protocol continues to operate its decentralized buyback mechanism according to parameters established in the Sky Atlas. **Key Details:** - The buyback mechanism and its parameters remain defined in the Sky Atlas documentation - These parameters were approved through Sky Ecosystem Governance processes - The framework provides transparency for how the protocol manages token buybacks For complete technical specifications and governance details, see the [Sky Atlas documentation](https://sky-atlas.io/#A.2.4.1.4.2.1). This represents an ongoing operational update rather than a new policy change, as the same mechanism has been in place throughout January 2026.

Sky Protocol purchased 29.5 million SKY tokens last week using 1.9 million USDS, maintaining its consistent weekly buyback pace. The protocol has now spent over **104 million USDS** on token buybacks since the program launched. This marks steady growth from the 100 million milestone reached in mid-January. **Recent buyback activity:** - Week of Jan 26: 29.5M SKY for 1.9M USDS - Week of Jan 19: 31.57M SKY for 1.9M USDS - Week of Jan 12: 32M SKY for 1.9M USDS The program continues to remove SKY tokens from circulation at a rate of approximately 1.9 million USDS per week, demonstrating consistent execution of the protocol's token economics strategy.

The newly launched Morpho V2 Vault has attracted over **18 million USDS** in just one day. **Key Features:** - Enables leveraged stUSDS positions through the stUSDS/USDS market - Built on Morpho's lending infrastructure - Powered by Sky Protocol's yield-generating stablecoins (stUSDS and USDS) **How It Works:** Users can supply stUSDS, borrow USDS, and loop back into stUSDS to increase their exposure to Sky Protocol's yield-generating stablecoin. **Launch Incentives:** 30,000 USDS allocated for USDS suppliers during the first week. The integration follows Sky Protocol's team joining Morpho as a vault Curator, strengthening liquidity conditions for DeFi strategies built around Sky's stablecoins. **Access the Vault:** - [USDS Vault](https://app.morpho.org/ethereum/vault/0xf42bca228D9bd3e2F8EE65Fec3d21De1063882d4/skymoney-usds-risk-capital) - [stUSDS/USDS Market](https://app.morpho.org/ethereum/market/0x77e624dd9dd980810c2b804249e88f3598d9c7ec91f16aa5fbf6e3fdf6087f82/stusds-usds?subTab=activity)

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.