Sky cuts buybacks by 87% to bolster stablecoin reserves

The community of Sky (SKY), formerly MakerDAO, is reducing its daily buybacks by 87% from $300,000 to $37,600, DL News reported. The measure will be in effect for three months. Sky founder Rune Christensen said the move is a precautionary measure due to the war in Iran. In a post on X, Sky explained the governance proposal is part of a strategy to increase the backstop capital used to maintain the price stability of its USDS and DAI stablecoins. Over the past 30 days, the supply of USDS has grown by more than 22% to approximately $7.9 billion, while DAI's supply has increased by about 2% to $4.5 billion. However, the backstop capital available to defend the prices of these tokens has remained at around $50 million.