Sky Ecosystem, formerly MakerDAO, is developing a proposal for launching on Solana. The chain, which is undergoing a rebranding and restructuring of its assets, aims to use bridging to create Solana-based lending.
Sky is attempting to go multi-chain after years of relying on Ethereum as a staple. One of the lead Sky Ecosystem developers presented the proposal to extend the lending pools to Solana.
Its newly launched USDS token will become the bridgehead into the Solana ecosystem. USDS, which replaces DAI, aims to be a safe collateralized asset that will offer stability on DeFi apps and pools.
Sky developer 0xretro proposed the inclusion of USDS on Solana through the Wormhole bridge. The Solana version of Sky Ecosystem will also carry the SKY token and staked USDS (sUSDS).
The proposal arrives just two days after MakerDAO finalized its rebranding. The new tokens are still going through the swap process. USDS is swapped 1:1 with the old DAI asset. MKR, the formerly high-priced token, will undergo a split and be swapped at 1MKR for 24,000 SKY.
SkyLink is the final stage before Solana launch
One of Sky’s goals is to launch as a Solana-based network, possibly using L2 technology. Solana still allows most apps to run and scale on Layer 1. Maker was also formerly an L1 app on Ethereum, with no attempts to run on other networks.
The endgame for Sky is the SkyLink protocol, first to be built on Ethereum. For Sky developers, the challenge is to build a double protocol, since Solana is not EVM-compatible. Using Wormhole is the possible short-term solution to bring another decentralized application to Solana.
Solana already carries relatively smaller DeFi protocols, and Sky will compete with the likes of Solend. The entire Solana ecosystem locks in $5.36B in value, with most of the funds distributed across DEXs. Currently, Solana carries mostly decentralized swaps for meme tokens, with other forms of DeFi activity smaller compared to EVM networks.
Adding Sky versions of tokens or even SkyLink can significantly boost Solana value locked. Sky itself reports more than $12B in value locked, inherited from Maker’s vaults. Spark Lend alone locks in $3.05B in liquidity, with $635M in loans.
The launch on Solana could give Sky a distinct advantage over Ethereum’s Aave, which is spread across 12 EVM-compatible chains and has no plans to grow into Solana. For now, Solana’s DeFi tasks are concentrated on JitoSOL, a multi-role entity with outsized influence.
USDS supply exceeds $400M
Just days after going live, USDS now carries $400M in value, waiting for the full restructuring from DAI.
Over 400 million USDS in total supply! pic.twitter.com/ZpIjsO0Hpe
— Sky (@SkyEcosystem) September 20, 2024
USDS will inherit DAI’s latest collateral structure, which combines crypto with legacy reserves, cash, and reserves from the Spark sub-DAO. USDS inherited the initial supply of DAI at 5.3B tokens, with new mints after the August low of 4.5B. The beta period swap bonuses will translate into a new mint for USDS.
The swapping process has so far minted 23% more USDS compared to the DAI deposited, creating conditions for sufficient liquidity.
In addition to swapping its main assets, Sky is in the process of unwinding its WBTC collaterals. The vote ended on September 16, with several large-weight delegates voting 97% in favor. Holders of WBTC in lending pools will have to withdraw their holdings, or receive the same value in the new wrapped asset, cbBTC.
The Sky brand will also face a new challenge, after BitGet announced its own stablecoin, also carrying the USDS ticker. BitGet is the main issuer and custodian of WBTC, which sparked worries among DeFi app builders for attempting to launch the same wrapped asset on TRON.
The Sky Ecosystem token will go as Sky Dollar and gain more activity after swapping the legacy token supply. The Sky Dollar tokens are available through a dedicated upgrade portal, requiring a wallet connection.
Cryptopolitan reporting by Hristina Vasileva.
