Stablecoin rates are correlated with tradfi related metrics of risk and stress (term struct and/or spreads) because the systemic risk shocks liquidity on both markets and not because defi is tracking cefi or whatever https://t.co/S74YEsCSGd
Stablecoin rates are correlated with tradfi related metrics of risk and stress (term struct and/or spreads) because the systemic risk shocks liquidity on both markets and not because defi is tracking cefi or whatever https://t.co/S74YEsCSGd
Ser how else you explain USDS/PEPE rates spiking during market crashes.
Tldr it’s just correlation from market stress on an isolated level. Not sure how do you robustly prove this from a premia pov
Arguably the best onchain business that has ever been built, projected to double in size in 2026. Extremely bullish on Sky's continued diversification into private credit to maintain a more stable savings rate for USDS long term.
Diversifying yield away from crypto native borrowing and lending has and continues to be the most important mission in crypto. There is no other mission that will more predictably deliver long term growth and stability for the industry.
Sky Frontier Foundation has published its Sky Ecosystem Q4 Update and 2026 Outlook report.
2025 Financial Highlights:
→ USDS Supply: $9.2 billion (+74% YoY)
→ Gross Protocol Revenue: $338 million (+10% YoY)
→ Q4 Operational Expenses: $8.8 million (-63% YoY)
→ Total 2025 Buybacks: $96.8 million
Full report & Sky Frontier Foundation’s 2026 Outlook ⤵️