Sky introduces USDS stablecoin on Solana to boost DeFi ecosystem
Sky launches USDS on Solana to expand DeFi presence
Sky, a decentralized finance platform evolved from MakerDAO (DAI), has launched its USDS stablecoin on the Solana blockchain to expand its presence in the network’s rapidly growing DeFi ecosystem.
Sky announced the move on November 19 via a post on X, describing USDS as “the first major DeFi-native stablecoin on Solana” that will facilitate lending, borrowing, and trading across the network's leading DeFi platforms.
Loading...
“USDS opens new opportunities for lending, borrowing, and trading on top DeFi platforms within the ecosystem,” the protocol stated.
Sky also revealed plans to introduce its SkyLink cross-chain bridge for USDS and its savings-oriented sUSDS version, pending governance approval.
The USDS stablecoin is a rebranded version of DAI, pegged to the US dollar, maintaining a value of $1. Sky itself rebranded from Maker in August, though the name change sparked controversy, with co-founder Rune Christensen advocating a return to "Maker." Despite his efforts, key stakeholders voted against the proposal, solidifying the Sky brand, according to Cointelegraph.
Incentives for early adoption
Sky has introduced an incentive program to encourage Solana users to adopt USDS. Liquidity providers on platforms such as Kamino Finance can earn 200,000 USDS in weekly rewards for USDC/USDS pools, along with an additional 100,000 USDS weekly for stablecoin suppliers. Drift Protocol is also offering 100,000 USDS in weekly rewards, while Save Finance providers have the chance to earn a share of 400,000 USDS in monthly incentives.
Sky emphasized the seamless functionality of USDS on Solana, enabled by integration with Wormhole’s Native Token Transfer (NTT) technology.
DeFi growth on Solana
The deployment comes amid significant growth in Solana’s DeFi sector. Total value locked (TVL) in the network has surged by 487% year-to-date, reaching $8.34 billion, according to DefiLlama. However, much of this popularity has been driven by speculative activity, supported by Solana’s low transaction costs and tools like Pump.fun.
Challenges ahead
Despite the positive reception of the stablecoin, Sky faces challenges with its governance token, SKY, which replaced the Maker (MKR) token. SKY has yet to secure listings on major exchanges, slowing adoption. Since the rebrand, the value of the original MKR token has dropped by 30%, reflecting uncertainty among holders regarding the protocol's direction.
In conclusion, the launch of USDS on Solana aims to solidify Sky’s position in the evolving DeFi market, leveraging incentives and innovation to attract user interest and grow its ecosystem.
Separately, Ripple Labs, the company behind the cryptocurrency XRP, has recently unveiled details about its upcoming stablecoin, RLUSD, which will be pegged to the US dollar.
