Cheap and growing, with the buyback deliberately turned down.
Sky, formerly MakerDAO, is a rare DeFi blue-chip that is both growing fast and cheap. Revenue jumped 29% year over year and it trades around 6 times surplus. The reason it is cheap is a choice: the buyback was throttled to build a solvency reserve, and it restores toward normal once that reserve fills.
What it is
Sky is the protocol formerly known as MakerDAO and the issuer of the USDS stablecoin, now at $11.7B and growing 68% year over year. It earns by lending against collateral and holding real-world assets, and it is one of the oldest and most battle-tested businesses in DeFi.
The money
First-quarter gross revenue was $123.8M, up 29% year over year and 57% quarter over quarter, annualizing to roughly $435M with 2026 projected near $611M. Protocol surplus was $46M in the quarter, about $184M annualized. That puts it around 6 times surplus and 2.4 times gross revenue, cheap for a franchise still growing this fast.
The throttled catalyst
The Smart Burn Engine, Sky's buyback, was cut from 75% of surplus to 7.5% in March 2026 to build a $150M solvency reserve. The reserve was about $51M and on track for roughly $75M by mid-year. Once it reaches $125M, the buyback restores toward 25% and above. That restoration is the dated catalyst: the cash is being earned now, it is just being retained for a while.
Fig 1 · Growing fast, priced cheap.
EXPECTED VALUE ~= 1.73x, THE RE-RATE IS THE BUYBACK COMING BACK
Revenue is real and growing: Q1 gross revenue $123.8M, up 29% year over year, with USDS supply up 68% year over year.
The buyback is intentionally cut to 7.5% of surplus while the reserve fills. It restores toward 25% or more once the reserve hits $125M, expected around 2027.
Two top holders control about 41% and 29%, though these read as protocol and treasury contracts. Stablecoin competition and any real-world-asset credit scare are the real bear.
The call
Grade BBB, an investment-grade blue-chip. Cheap on a growing surplus, with a clean, dated catalyst: the buyback restoring once the solvency reserve fills. The risk is that the reserve build drags, USDS growth stalls, or a real-world-asset credit issue hits the balance sheet. Watch USDS supply and the reserve balance approaching $125M.
Confidence and what we could not verify
Moderate to high. Revenue, surplus and supply figures are foundation-reported and consistent. The main judgment is the timing of the reserve build and the durability of USDS growth.