Sky’s $75M Buyback Sends SKY Token Soaring 8% in 6 Months

Sky, the decentralized finance (DeFi) protocol formerly known as MakerDAO, has propelled its SKY token up 8% over the past six months through a strategic $75 million buyback program launched in February 2025. The initiative, funded by Sky’s USDS stablecoin, aims to reduce the circulating supply of SKY, enhancing scarcity and supporting price stability. Since starting, Sky has repurchased 1.17 billion SKY tokens, with a peak spend of $18.31 million in March, per its dashboard data.

The buyback, executed via the Smart Burn Engine, has bolstered investor confidence, with SKY rising from 6.3 cents to 6.85 cents by September 2025, according to CoinGecko. This move aligns with Sky’s governance-focused approach, managing a $378.3 million treasury and $8.1 billion in total value locked (TVL). The protocol’s savings product, Spark, alone holds $2.45 billion, attracting nearly 200,000 users.

Unlike competitors Uniswap (UNI) and Aave (AAVE), which saw 6% and 25.8% gains respectively, SKY’s steady climb reflects disciplined capital allocation. Analysts highlight that the buyback, coupled with staking rewards offering 12.65% APY, positions Sky as a leader in sustainable DeFi tokenomics. However, challenges like regulatory uncertainties and volatile market sentiment persist, with SKY’s RSI at 39.7 signaling neutral momentum.

As Sky continues its rebrand from MakerDAO and expands to Solana via Wormhole, the buyback underscores its commitment to long-term value. Traders eye potential growth, but a “sell-the-news” risk looms post-rebrand. For now, Sky’s strategy sets a benchmark for DeFi projects aiming for stability in a turbulent crypto market.