Sky recently reduced its buybacks and staking rewards significantly --> buybacks from 75% of profits to 7.5% --> staking rewards from 12% APY to ~4% even though they just had their best quarter in history retail hates this, institutions love this here's why this is bullish Sky governance released multiple statements saying that they have decided to prioritize capital retention over capital distribution meaning, they want to focus on using protocol profits to build a more robust protocol and a better product over distributing profits to investors what is the product Sky is building? Trust and in financial services, trust is everything look what happened 2 weeks ago with $AAVE. Billions of capital flowed out of AAVE because their customers lost trust the same with Ethena in October this happened with silicon valley bank in 2023, it happened with FTX in 2022 and has happened many many times with financial companies before it the best financial products are the products that don't lose customer funds and so far in Defi, no one has done this better than @SkyEcosystem this is why Sky has continued to grow $USDS during a risk-off environment to almost a $12 Billion supply, now the 3rd largest stablecoin and largest yield generating stablecoin in the world Sky is moving its profits into building their capital reserves from $50m to $150m all with the sole purpose of protecting users funds as institutions enter the market and use stablecoins, they don't care about the highest yields on their dollars. They just care about not losing their money (which is wayyy too common defi) they want to allocate capital into places where they can feel confident their money is safe, and that's the product Sky has build with USDS by prioritizing capital retention over capital distribution, Sky is building an even bigger moat in their product and setting the stage for more growth ahead this will drive more revenue, more profits and thus overtime, more buybacks and distributions for $SKY holders Sky was the leader in buybacks the last few years in this space, now everyone is following suit Now Sky is going the other way and prioritizing risk management. Time and time again Sky remains ahead of the entire industry