Sky Deployed the USDS stablecoin on Solana

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Sky's USDS Takes Flight: Solana's First DeFi-Native Stablecoin Arrives

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 21, 2024

Key Takeaways

Sky launched USDS to strengthen Solana's DeFi liquidity and unlock new lending and trading opportunities;
Generous rewards aim to drive early adoption and build liquidity across Solana’s DeFi platforms;
SkyLink cross-chain bridge and seamless integration with Wormhole.

Sky's USDS Takes Flight: Solana's First DeFi-Native Stablecoin Arrives

Sky, previously recognized as Maker, has introduced its USDS stablecoin to the Solana SOL $199.11 blockchain, targeting the expansion of decentralized finance (DeFi) activities within Solana’s growing ecosystem.

On November 19, Sky announced that USDS is the first stablecoin native to DeFi on Solana. The team emphasized that the launch aims to enhance liquidity and total value locked (TVL) on Solana’s DeFi platforms.

A key component of this initiative is the planned introduction of SkyLink, a cross-chain bridging solution for USDS and its “savings” variant, sUSDS. This rollout is designed to ensure interoperability and expand the utility of Sky’s stablecoins across multiple blockchains.

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USDS itself is an evolution of the stablecoin Dai DAI $0.9993 , rebranded as part of Sky’s August transformation from Maker. However, this rebranding faced some backlash. Co-founder Rune Christensen suggested reverting to the Maker name, but four major token holders overruled the idea.

To drive the adoption of USDS among Solana users, Sky has launched an incentive program that rewards early adopters and liquidity providers on various DeFi platforms.

For instance, Kamino Finance participants can earn weekly rewards of 200,000 USDS for providing liquidity in USDC USDC $0.9996 /USDS pairs and an additional 100,000 USDS weekly for supplying USDS.

Sky’s native integration with Solana is powered by Wormhole’s Native Token Transfer (NTT), which ensures smooth and efficient operations for USDS on the network. This functionality reinforces the stablecoin’s usability across Solana’s ecosystem, providing users seamless access to DeFi tools.

While Sky expands DeFi with its USDS stablecoin on Solana, Binance is in the spotlight for BFUSD. Why is it stirring debate? It's because some people think it might end up like the infamous TerraClassicUSD.