Sky launches USDS, Solana's first major DeFi-native stablecoin, aiming to boost liquidity and expand DeFi opportunities across the network.
Early adopters gain rewards, with Save Finance offering 400,000 USDS monthly and Kamino providing 300,000 USDS in weekly incentives.
Sky plans the SkyLink bridge for efficient cross-chain operations, awaiting governance approval to strengthen Solana’s DeFi ecosystem further.
Sky has launched its USDS stablecoin on Solana, marking a significant development for the blockchain's decentralized finance (DeFi) ecosystem. By leveraging Solana's infrastructure, the stablecoin aims to enhance liquidity and unlock new opportunities for borrowing, lending, and trading on Solana-based platforms.
https://twitter.com/alt_coiners/status/1859089698146361449
Strategic Integration on Solana
Sky has positioned USDS as Solana's first major DeFi-native stablecoin, designed to boost liquidity and increase total value locked (TVL) across the network. The integration utilizes Wormhole's Native Token Transfer (NTT) system to enable seamless and efficient transactions for users. Consequently, this effort supports Solana's growth as a DeFi hub while offering users a smoother experience.
Rewards to Encourage Early Adoption
To incentivize early adoption, Sky has introduced substantial rewards for liquidity providers and users across several DeFi protocols. Kamino Finance participants can earn 300,000 USDS in weekly rewards, while Save Finance offers 400,000 USDS monthly to stablecoin suppliers. Additionally, Drift Protocol users stand to gain from these incentives, further bolstering liquidity on the network.
USDS, formerly known as Dai (DAI), remains pegged to the US dollar and is currently the third-largest stablecoin by market share, holding 2.8% and a market capitalization of $5.3 billion. Sky's rebranding initiative in August initially confused but has since clarified its goals of expanding in the DeFi space. Nevertheless, USDS faces stiff competition from market leaders Tether and USD Coin, which dominate with a combined 88% share of the stablecoin sector.
SkyLink Bridge to Enhance Operations
Sky plans to roll out its SkyLink cross-chain bridge to facilitate seamless USDS operations across Solana and other networks. This upgrade will include support for sUSDS, a savings-focused variant of the stablecoin. Governance approval is awaited to launch the bridge, which is expected to drive greater adoption and improve capital efficiency on Solana’s trusted protocols.
Moreover, Sky intends to launch a temporary program offering SKY tokens to liquidity providers. With allocations of up to 2 million SKY tokens weekly, the program focuses on boosting liquidity for USDS/USDC and USDS/sUSDS trading pairs. These initiatives aim to create a sustainable and robust liquidity ecosystem for USDS on Solana.
