Sky, formerly known as Maker, introduced USDS stablecoin on Solana, as the network’s “first major Defi-native stablecoin.”
A Nov. 19 announcement states that USDS is the first step in Sky’s plan to “increase Solana’s DeFi liquidity and TVL” and is anticipated to improve lending, borrowing, and trading on the network’s top DeFi platforms.
The decentralized finance market on Solana, which has seen an increase in daily trading volumes and total value locked since the year began, is one that Sky aims to control using USDS.
As of writing, Solana’s TVL has increased from $1.4 billion on January 1 to over $8.3 billion, and its daily trading volume has just reached a record-breaking $7.14 billion, according to DefiLlama. The announcement added:
Sky’s vision is aligning with Solana’s strong ecosystem of consumer apps, composability, and high-performance technology”
Wormhole’s Native Token Transfer facilitates the integration of USDS on Solana, making the stablecoin natively multichain and accessible on both Solana and Ethereum without the need for wrapped tokens, guaranteeing a consistent supply across chains.
Additionally, NTT allows Sky to connect the Solana network to its governance token, SKY. Sky is rewarding users and liquidity providers who interact with USDS across the four Solana DeFi protocols as part of the launch to encourage early adoption.
Kamino Finance users who supply liquidity to USDC/USDS pairs will receive 200,000 USDS every week, while stablecoin suppliers will receive an extra 100,000 USDS.
While Save Finance participants can receive a monthly share of 400,000 USDS for their contributions to stablecoin liquidity, Drift Protocol users who supply USDS will be eligible for weekly incentives of 100,000 USDS.
Additionally, Sky intends to launch SkyLink, a cross-chain bridge that links USDS with sUSDS, a stablecoin that focuses on savings.
This rollout is anticipated to increase cross-chain operability for USDS holders, pending governance approval.
USDS, a rebranded Dai stablecoin, was introduced in September as a dollar-pegged stablecoin. At $5.23 billion, it is currently the third-largest stablecoin by market capitalization, competing with well-known coins like Circle’s USDC and Tether’s USDT.
According to DefiLlama, the two stablecoins together represent over 90% of the stablecoin market value, which is $184.7 billion.
In similar news, Sky recently tried to return to the Maker logo after its rebranding was confused, but the plan was turned down.
