Sky Protocol continues to grow the USDS supply, reaching a new peak of 1.8 billion. The protocol actively uses both new and legacy stablecoins in various DeFi activities.
New USDS Achievements
The stablecoin USDS from Sky Protocol reached a new supply peak of 1.8 billion after accelerated swaps from DAI. Both stablecoins are used in active and passive DeFi activities, with the swap mechanism from DAI still open. The key driver of growth is the 12.5% annualized yield for the token. In January, the supply level exceeded 1.5 billion tokens, continuing to grow on Ethereum and partially on Solana.
Adaptation on Solana
In its initial stages of spreading on Solana, USDS reached a volume of 102K tokens as a test for the full launch of Sky Protocol. The main goal is to offer the same DeFi services and yield but on Solana's more scalable network. Recently, the total value locked (TVL) on Solana has increased to $8.54 billion, with the predominance of USDC tokens and USDS share reaching about 1%. The transaction metrics on Solana are still modest, but activity has been rapidly growing since November.
Prospects and Strategies
Sky Protocol continues to be one of the leading DeFi applications for passive income. Some partnerships are achieved through the largest subDAO, Spark Protocol, which has launched its own set of Aave vaults. In the future, Sky Protocol aims to regain Maker's former position as one of the top stablecoin issuers and providers of passive income.
Sky Protocol is investing efforts in expanding the introduction of USDS, preparing for increased influence on Solana and Base. This indicates Sky's strategic aim to enhance the scalability and accessibility of its DeFi services.
