Sky Governance is proposing two structural upgrades to strengthen the protocol's capital protection framework, according to an announcement on April 7, 2026. The proposals include implementing a stronger solvency buffer and adopting a more sustainable staking rewards model. The measures are designed to solidify Sky Protocol's long-term stability while prioritizing trustworthiness over short-term yield-seeking.

Sky Protocol cited sUSDS, its yield-generating stablecoin, as the largest in its category, attributing its success to the protocol's distinctive risk posture compared to competitors in the space. The governance updates reflect Sky Protocol's commitment to capital protection and long-term sustainability.

Sources: Sky Ecosystem

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