Standard Chartered Sets SKY Price Target at $0.325
Standard Chartered has initiated coverage of SKY, the token of Sky Protocol, formerly MakerDAO, and set a year-end 2028 price target of $0.325. That is roughly five times SKY’s current price of about $0.065. Analyst Geoffrey Kendrick describes Sky Protocol as the “Federal Reserve of DeFi”. USDS and DAI function as on-chain money, while Spark, Grove and Obex allocate capital across the ecosystem.
USDS circulation grew 74% in 2025 to about $9.2 billion. Combined USDS and DAI supply exceeds $12 billion, while yield-bearing stablecoin sUSDS has about $5.5 billion in supply. The three agents currently borrow approximately $5.9 billion against combined limits of $17.5 billion, equal to about 34% utilisation.
Sky reported around $338 million in protocol revenue in 2025 and approximately $168 million in annualised profit. The Smart Burn Engine repurchased about $96.8 million of SKY in 2025, while SKY staking yield is around 4.2%. Revenue is mainly returned through sUSDS rewards, SKY buybacks and token burns.
The valuation relies on two potential growth stages. First, reserve backstop capital could rise from about $90 million to $150 million, potentially increasing the share of revenue directed to SKY rewards and buybacks. Second, agent borrowing could expand towards the $17.5 billion ceiling. If lending spreads remain stable, this could increase protocol revenue by two to three times.
The outlook for SKY is bullish but assumption-driven. The Smart Burn Engine can be suspended by governance, as occurred in March 2026, and the model depends on stable interest spreads, higher agent utilisation and continued USDS growth. Traders should monitor USDS supply, agent borrowing, protocol revenue, the 3.8% base rate, sUSDS yields, reserve capital and SKY buybacks. Competition, interest-rate changes, credit risk and governance centralisation remain major risks.
Bullish
The report is bullish for SKY because Standard Chartered’s $0.325 target implies substantial long-term upside from current levels. The investment case is supported by rapid USDS growth, more than $12 billion in combined USDS and DAI supply, strong protocol revenue, staking rewards and ongoing SKY buybacks and burns. Low agent-loan utilisation also leaves room for additional borrowing and potential revenue growth.
In the short term, the target could improve sentiment and attract speculative buying. However, traders may respond cautiously because the valuation is based on 2028 assumptions rather than immediate cash flows. SKY could remain sensitive to changes in stablecoin yields, the 3.8% base rate, governance decisions and buyback activity.
Over the longer term, higher agent utilisation, larger reserves and continued USDS adoption could support SKY demand and reduce circulating supply through buybacks and burns. Conversely, narrower lending spreads, credit losses, stronger DeFi competition or another suspension of the Smart Burn Engine could weaken the thesis. Therefore, the direct price impact is bullish, but volatility and drawdown risks remain significant.