Sky has drastically reduced its buybacks to increase its stablecoin reserves in response to potential oil price shocks.

According to ME News, on March 13th (UTC+8), the DeFi protocol Sky voted to reduce its governance token buyback program from $300,000 per day to $37,600 per day, a decrease of approximately 87%, for a period of three months. Sky founder Rune Christensen stated that this move is to address the potential for a "massive oil price shock" caused by a potential war with Iran and to enhance the security of USDS and DAI reserves. Data shows that in the past 30 days, USDS supply has increased by over 22% to approximately $7.9 billion, DAI has increased to $4.5 billion, while the protocol's "backstop capital" used to back the stablecoin has remained relatively stable at approximately $50 million. Previously, S&P Global gave Sky a B- rating, noting its low surplus buffer. After ceasing the high-amount buyback, Sky plans to prioritize replenishing its surplus buffer and retain other stablecoin measures such as issuing new SKY tokens or repurchasing assets from sub-protocols. (Source: ME)