Sky Protocol has significantly outperformed Ethena in terms of revenue over the past year, despite both generating similar fee incomes. Analyst Stacy Muur highlighted that Sky generated approximately $413 million in fees compared to Ethena's $362 million. However, Sky's protocol revenue reached about $240 million, vastly surpassing Ethena's $12.4 million.
The disparity is attributed to their differing business models. Sky profits from borrower fees and stablecoin collateral yields, retaining most revenue at the protocol level. In contrast, Ethena earns from hedging collateral, with most profits distributed to sUSDe holders. This model makes Ethena more vulnerable to declining funding rates. Over the past month, Ethena's Total Value Locked (TVL) dropped by 16%, while Sky's TVL increased by 0.5%.
Sky Protocol Outperforms Ethena with 19x Higher Revenue
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