Sky cuts savings rate to 3.60% as Frontier Foundation drops first transparency report

Sky Savings Rate Falls to 3.60%

@SkyEcosystem has cut its Sky Savings Rate (SSR) to 3.60%, down from 4.75% in late April. Sky Governance framed the move as part of continued surplus buffer strengthening, prioritising institutional-grade robustness over rate competition. The decision is consistent with a broader trend of SSR adjustments tied to macroeconomic conditions. BA Labs had previously recommended lowering the SSR, citing a low rate environment across large, highly liquid markets, including funding rates and SOFR, while keeping the SSR competitive relative to comparable DeFi rates.

The SSR is set by Sky governance and draws yield from the collateral backing USDS, including real-world assets and crypto-collateralised vaults. When collateral earnings exceed the rate paid to depositors, the surplus flows to Sky's protocol buffer. A cut of this scale signals that governance is prioritising balance sheet resilience over headline yield, at least in the near term.

SFF Publishes Inaugural Transparency Report, SDEV Investment in Focus

On the same day, Sky Frontier Foundation (@SkyEcoInsights) published its inaugural transparency report, covering June 2025 through Q1 2026. The report confirmed a $16M USDS investment in Stablecoin Development Corporation (NYSE American: $SDEV), made alongside co-investors including Tether Investments. The SFF treasury currently holds 2.67 billion SKY locked, with $37.1M in USDS borrowings against it. H2 2025 staking rewards came in at $4.68 million.

$SDEV, formerly NovaBay Pharmaceuticals, completed its pivot to an onchain holding company in March 2026. According to its Q1 2026 financial results, the company held approximately 2.15 billion SKY tokens as of March 31, 2026, representing roughly 9.15% of total supply, with all tokens actively staked. SKY is currently the only digital asset held under SDEV's operating framework, drawing comparisons to Strategy's approach with Bitcoin. The company reported staking revenue of $2.5 million for Q1 2026 and operating income of $22.3 million for the same period.

Sky Frontier Foundation, founded in August 2025, describes itself as an independent foundation supporting innovation and development across the Sky Ecosystem. The inaugural transparency report marks the first time the foundation has disclosed consolidated financial and operational metrics to the public, a move the protocol has positioned as raising the bar for accountability in decentralised finance.

Sources:
Stablecoin Development Corporation Q1 2026 Financial Results (GlobeNewswire)
Sky Frontier Foundation Insights Hub
BA Labs: Risk Month in Review, April 2026 (Sky Forum)