Decentralized finance (DeFi) protocol Sky has introduced its USDS stablecoin to the Solana blockchain. The move is part of its strategy to capitalize on Solana’s expanding DeFi ecosystem. In a post on X on Nov. 19, Sky described USDS as “the first major DeFi-native stablecoin on Solana.”
The company highlighted that USDS would open up new lending, borrowing, and trading opportunities on some of Solana’s leading DeFi platforms.
USDS is the new name for the stablecoin Dai (DAI), designed to maintain a value of $1. Similarly, Sky was rebranded from Maker back in August. However, the name change caused some confusion, prompting co-founder Rune Christensen to suggest reverting to the original name. Despite his proposal, four major stakeholders opposed it, and the name Sky remained unchanged.
Earn big with Sky’s USDS on Solana
Sky is offering enticing rewards to encourage Solana users to embrace its rebranded token. These incentives can benefit early adopters and stablecoin liquidity providers on DeFi platforms. Kamino Finance users, in particular, can earn weekly rewards, with 200,000 USDS available for USDC/USDS liquidity providers and 100,000 USDS set aside for stablecoin suppliers.
Drift Protocol has set aside 100,000 USDS as rewards for stablecoin suppliers. Meanwhile, Save Finance is offering a chance to earn a share of 400,000 USDS in monthly rewards for those supplying the dollar-pegged asset. According to the Sky team, the protocol’s integration with Wormhole’s Native Token Transfer (NTT) allows smooth and efficient USDS operations on Solana.
DeFi on Solana has experienced significant growth this year, with the total value locked surging 487% year-to-date, reaching $8.34 billion, according to DefiLlama. However, much of Solana’s recent popularity comes from the hype around memecoins. The network’s speed and low costs make it an ideal choice for creating and launching these tokens through platforms like Pump.fun.
The former governance token Maker (MKR) has dropped 30% in value since its rebranding. The protocol encouraged holders to switch to its new token, Sky (SKY), but adoption has been sluggish. A key reason is that SKY isn’t yet available for trading on exchanges, limiting its accessibility.
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