[ChainFundamentals AI Research] Sky Datasets Analysis – July2026

Sky Protocol — Monthly Report July 2026 For the detailed dashboard of Sky Fundamental datasets, visit Chain Fundamentals. 1. Main Metrics — July 2026 2. Sky Yield, Buybacks and Burn The yield paid for staking Sky increased during the month from 5.72% to 6.75%, coinciding with a recovery in the token price. At this new rate, there is currently ~30 days’ worth of Sky tokens funding in the Treasury to sustain these rewards. Based on the MSC-10 update, before these funds are depleted, USDS Staking Rewards will be activated, resulting in a rules-based allocation of funds to burn, buybacks, and USDS rewards. Per A.2.3.1.4 - Implementation, pending activation of the USDS Staking Rewards, the Smart Burn Engine continues to operate under the existing onchain parameters specified in A.3.5.2 - Smart Burn Engine Parameters, and SKY staking rewards continue to be funded from the Protocol Treasury via the Vesting Stream Contract specified in A.4.4.1.4.2.1.3 - Vesting Stream Contract. The USDS Staking Rewards become operational once the SKY tokens funding the Vesting Stream Contract approach depletion. — BALabs, MSC-10 Forum post 3. Sky Protocol Reserves & SFF The high Gross Cash Flow observed this month (boosted by the reconciliation of MSC-5 through MSC-9 correcting revenue for Prime agents) has not flowed through to Sky Protocol Reserves, which recorded a slight decline over the month. This is primarily attributable to the $14M Genesis Capital drawdown from the Sky Frontier Foundation. Onchain data indicates the Sky Frontier Foundation’s cash flow requirements in July were ~$7M. 4. USDS Supply & Competitive Market Total USDS supply continued to contract in July, led by outflows from sUSDS, partially offset by the newly launched USDS Grove Token Rewards, which captured deposits of ~$180M. Over the same period, Morpho and Aave stablecoin supply grew by 20.6% and 7.3% respectively, suggesting a rotation of stablecoin deposits toward these lending markets. 5. Summary Ecosystem cash generation remains healthy despite the prevailing bear market, though the balance of cash distribution across Savers, Tokenholders, Agents, Operations (including the SFF), and Protocol Reserves is likely to remain a point of discussion. The last two months in particular have seen large USDS outflows. With the SSR rate now below SOFR, and with Aave and Morpho attracting a growing share of stablecoin deposits from a shrinking market, USDS supply is likely to remain under pressure at current rates. It remains to be seen whether Sky Governance activates the rules-based allocation of Step 3 Capital from Net Revenue to Buybacks, Staking Rewards and Burn during August, which would result in a materially higher cash allocation for direct Tokenholder value accrual. Sources & methodology: Figures are drawn from ChainFundamentals onchain data and the Sky Frontier Foundation site. Published as independent research for community transparency, not as investment advice. Drafted with Claude.AI; data and queries via ChainFundamentals.io. 1 post - 1 participant Read full topic