Sky, formerly known as Maker, has strategically launched its USDS stablecoin on Solana, marking a major milestone for decentralized finance (DeFi) on the blockchain. Announced via an X post on November 19, Sky declared USDS as the “first major DeFi-native stablecoin on Solana,” promising to enhance lending, borrowing, and trading across the platform’s thriving DeFi ecosystem.
This deployment aligns with Sky’s broader vision of increasing Solana’s DeFi liquidity and total value locked (TVL). To further strengthen its foothold, Sky plans to introduce SkyLink, a cross-chain bridge enabling seamless transfers of USDS and its savings-focused counterpart, sUSDS, pending governance approval.
The USDS stablecoin, formerly known as DAI, is pegged to the US dollar and rebranded following Maker’s transformation into Sky in August. Despite initial confusion surrounding the name change, the decision to retain “Sky” was solidified after a governance vote.
Sky Launches Attractive Rewards
To encourage adoption among Solana users, Sky has rolled out attractive rewards for early adopters and liquidity providers on prominent DeFi platforms.
Kamino Finance users providing liquidity for the USDC/USDS pair can earn 200,000 USDS weekly, while stablecoin suppliers on the same platform are eligible for an additional 100,000 USDS per week. Drift Protocol participants supplying USDS will share 100,000 weekly rewards, while Save Finance users stand to benefit from a monthly pool of 400,000 USDS.
Sky emphasized the seamless integration of its USDS stablecoin on Solana via Wormhole’s Native Token Transfer (NTT) technology, ensuring effortless transactions within the ecosystem.
A Competitive Edge
Currently ranked as the third-largest stablecoin by market capitalization at $5.3 billion, USDS holds a modest 2.8% market share in a stablecoin sector dominated by Tether (USDT) and USD Coin (USDC), which jointly account for 88% of the market.
Meanwhile, Solana’s DeFi landscape is witnessing exponential growth, with its TVL surging 487% year-to-date to $8.34 billion, according to DefiLlama. While much of this growth is attributed to speculative activity in memecoins, the introduction of a robust DeFi-native stablecoin like USDS could signal a shift toward more sustainable financial activities on the platform.
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