The Daily Peg
The cycle never stops: The conscious recoupling of credit float from payment float is coming in the shape of yield-generating stablecoins.
Editorial hello
The stablecoin market is innovating more quickly than even a dedicated stablecoin publication can keep up with.
The latest trend to be aware of is the rise of leverage-exposed yield stablecoins. What’s fascinating about this is what it says about the so-called business cycle.
On that front we talked about CUSHY yesterday. Today, we turn our attention to SKY.
SKY is the rebranded name for MakerDAO’s DeFi system, which recently drew $134 million in support from a consortium including Framework Ventures, R01 Fund LP, and Tether Investments.
Tether participated via the publicly listed Stablecoin Development Corporation (SDEV), formerly the small-cap biotech NovaBay Pharmaceuticals, which pivoted entirely in early 2026 to become an on-chain holding company now owning roughly 9% of SKY governance tokens.
Amazingly, as you will see below, Sky’s USDS stablecoin has already surpassed Ethena’s USDe in market capitalization. It is now roughly twice the size at over $12 billion, positioning Sky as the third-biggest stablecoin issuer behind only Tether and Circle.
