Sky, formerly known as Maker, has launched its USDS stablecoin on Solana, positioning it as the network's first major DeFi-native stablecoin. This move aims to increase Solana's DeFi liquidity and total value locked (TVL).
Introduction of USDS on Solana
Sky hopes to capture a share of the growing DeFi market on Solana, which has shown growth since the start of the year. According to DefiLlama, Solana's TVL has risen from $1.4 billion in January to over $8.3 billion at the time of writing, with its daily trading volume recently hitting an all-time high of $7.14 billion.
Platforms and Rewards
Sky is incentivizing early adopters by offering rewards for engaging with USDS across four Solana DeFi protocols. Kamino Finance users will receive 200,000 USDS weekly for providing liquidity to USDC/USDS pairs, along with an additional 100,000 USDS for stablecoin suppliers. Drift Protocol users supplying USDS will be eligible for 100,000 USDS in weekly rewards, while Save Finance participants can earn a share of 400,000 USDS distributed monthly for their contributions to stablecoin liquidity.
The Future of USDS and SkyLink
Sky plans to introduce SkyLink, a cross-chain bridge connecting USDS and sUSDS, its savings-focused version of the stablecoin. This rollout, subject to governance approval, is expected to expand cross-chain operability for USDS holders. As a dollar-pegged stablecoin, USDS was launched in September and is a rebrand of the Dai stablecoin. It is currently the third-largest stablecoin by market capitalization, valued at $5.23 billion, competing with major players like Tether’s USDT and Circle’s USDC.
The launch of the USDS stablecoin on Solana by Sky represents a significant step in advancing the DeFi ecosystem on the platform, offering stimulating opportunities for users and liquidity providers. The future cross-chain operability through SkyLink promises to expand the usability of the stablecoin across various platforms and networks.
