MakerDAO/Sky Surplus Buffer sitting under $10m for the first time since February 2021. The SB backstops $7.8b of DAI/USDS and pays for operational expenses
Sky needs to either reduce the buyback, lower sUSDS yield, raise borrowing costs, or claw back capital from other buckets
My prediction is they’ll eventually claw back money from Spark, whose own Surplus Buffer has $32m in it — mostly airdropped from Sky.
They could also try claw back funds from the two brand new Cayman foundations, but those are not directly controlled by governance.
Were it me, I’d probably just inch down the sUSDS rate and SKY staking rewards. The latter are used by Rune to off-ramp money every month, so probably won’t see that yield go down.
Former are the biggest expense so modest drop would right the ship for now.
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