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

CoinFeed reported on March 13th, citing DL News, that the DeFi protocol Sky has 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 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 largely unchanged at approximately $50 million. Previously, S&P Global gave Sky a B- rating, noting its low surplus buffer.