Grand Cayman, Cayman Islands, January 29th, 2026 - The Sky Frontier Foundation (SFF) released its Sky Ecosystem Q4 Update and 2026 Outlook, presenting a financial and operational roadmap for the Sky Protocol heading into the upcoming fiscal year.
The foundation frames 2026 as a year of scaling and activation. Citing historical on-chain metrics, SFF has produced a series of estimates it says reflect both the protocol's recent momentum and the expected outcomes of a set of planned operational changes. The numbers SFF published include a projection of $611.5 million in gross protocol revenue for 2026 and $157.8 million in Protocol Profits - figures the foundation says are derived from its analysis of publicly available on-chain data.
SFF emphasizes the scale-up in USDS supply as a central factor underpinning its outlook. According to the report, USDS supply climbed 74% in the prior year to reach $9.2 billion. Based on that trajectory, the foundation expects circulating USDS supply to approach $20.6 billion in 2026 - an increase that SFF presents as nearly doubling the existing supply and an important input to its revenue projections.
Rune Christensen, Director of SFF, is quoted in the report: "2026 is about turning it on at full capacity." SFF says this approach combines a streamlined cost structure with a diversified pipeline of real-world yield, positioning Sky as what Christensen described as "one of the definitive destinations for institutional-grade, highly competitive risk-adjusted return on USD-denominated capital."
The 2026 outlook released by SFF lays out several headline expectations and tactical initiatives:
- Revenue and profit estimates: SFF projects $611.5 million in Gross Protocol Revenue for 2026, representing an 81% year-over-year increase, and $157.8 million in Protocol Profits, a 198% year-over-year rise.
- USDS market scaling: Circulating USDS supply is estimated to reach approximately $20.6 billion in 2026, with a notable strategic increase in USDT liquidity allocation planned for Q1.
- Sky Agent network expansion: The foundation forecasts the strategic onboarding of up to 10 new Sky Agents, with a potential Q1 deployment of a new Sky Agent offering structured credit solutions backed by stablecoin liquidity.
In SFF's analysis, the protocol's near-term financial trajectory balances a stabilization of foundational costs with a widening revenue base. That dynamic is the basis for the steep profit growth SFF forecasts, with Protocol Profits expected to rise 198% year-over-year.
Beyond the headline financials, the report highlights SFF's intent to operationalize financial reporting within the Sky Ecosystem. Christensen is quoted again on the foundation's transparency goals: "By operationalizing our financial reporting, we have proven that decentralized protocols can exceed the transparency standards of traditional capital markets. I invite our community and the broader financial industry to join us as we detail how we are scaling this infrastructure to become the premier global destination for yield on the dollar."
On the stablecoin itself, SFF's update reiterates USDS's positioning as the largest yield-generating stablecoin and the third-largest stablecoin by supply. The report describes USDS as an upgraded version of DAI and notes collective supply figures exceeding $9.2 billion at the time of the update.
SFF's document also clarifies operational boundaries and governance relationships. While SFF supports research, education, and ecosystem development for Sky, issuance, redemption, governance, reserve management, and parameter adjustments for USDS are executed by decentralized smart contracts and community governance processes that the foundation says are independent of SFF. The foundation additionally states that it does not issue, custody, redeem, manage reserves for, or guarantee USDS, nor does it have authority to bind the Sky Protocol or its governance.
The report references a diversified yield pipeline as a strategic focus for 2026, along with a growth engine for partnerships. Those elements are presented as complementary levers for revenue generation and as means to attract institutional capital seeking dollar-denominated yield solutions.
SFF's outlook includes operational timing and sequencing. It signals an expected strategic increase in USDT liquidity allocation early in the year and the potential for a new Sky Agent deployment in Q1 that would expand the protocol's structured credit capabilities. The broader plan of up to 10 new Sky Agents suggests a deliberate push to broaden the protocol's market-facing infrastructure and liquidity conduits.
The foundation's release is accompanied by a legal notice and a set of forward-looking disclaimers. In its statement, SFF notes the analyses, characterizations, and views in the report are judgment-based, reflect its interpretation of publicly available on-chain and market data, and may change without notice. The foundation says the content does not constitute legal opinions, regulatory determinations, or guarantees of outcome, and it disclaims liability for direct or indirect losses arising from reliance on the report.
For media and analyst inquiries, SFF directs contacts to [email protected].
About Sky Frontier Foundation - Sky Frontier Foundation is described in the report as an independent organization that serves as the innovation and acceleration arm of the Sky Ecosystem. SFF supports new Sky Agents and funds technologies it says will drive the next generation of decentralized finance.