Sky deploys USDS stablecoin on Solana in a bid to tap into the blockchain’s growing DeFi ecosystem

Sky said in a Nov. 19 X post that its USDS was “the first major DeFi-native stablecoin on Solana” and would allow new lending

Decentralized finance (DeFi) lending and borrowing protocol Sky, formerly known as Maker, has deployed its USDS stablecoin on Solana (SOL) in an effort to tap into the blockchain’s growing DeFi ecosystem.

In an X post on Nov. 19, Sky said that its USDS is “the first major DeFi-native stablecoin on Solana” and will enable new lending, borrowing and trading methods across Solana’s “top DeFi platforms.”

“Today’s launch marks the first step in Sky’s strategy to increase Solana’s DeFi liquidity and [total value locked],” it added. In the future, pending governance approval, Sky said it will roll out its SkyLink crosschain bridge for USDS and sUSDS, its “savings” version of the stablecoin.

USDS is a rebrand of the stablecoin Dai (DAI), which aims to stay at the value of $1. Sky rebranded from Maker in August, and confusion over the change led co-founder Rune Christensen to propose that it go back to its original name, which four whales squashed.

In a bid to get Solana users to take up the rebranded token, Sky is offering rewards for early adopters and stablecoin liquidity providers on various DeFi protocols.

Experience the magic of WAGMI Miami on Jan. 21-24 – The Biggest Blockchain Event in America – Get your tickets now!

Kamino Finance users will get to access 200,000 USDS in weekly rewards for USDC/USDS liquidity providers and 100,000 USDS weekly for suppliers of the stablecoin.

Those liquidity providers will also be eligible for a share of 200,000 USDS for SOL/USDS liquidity providers and 100,000 USDS for suppliers of the stablecoin.

Moreover, there will be 100,000 USDS rewards available for suppliers of the stablecoin to Drift Protocol. Those supplying the dollar-pegged asset to Save Finance will have the chance to earn a share of 400,000 USDS in monthly rewards.

The Sky team added that the protocol’s native integration via Wormhole’s Native Token Transfer (NTT) “enables seamless USDS operations on Solana.”

USDS is the third-largest stablecoin by market capitalization at $5.3 billion, giving it a 2.8% share of a market dominated by Tether (USDT) $1.00 and USD Coin (USDC) $0.9995 , which command 88% between them.

Related: Sky co-founder proposes no new emissions for core token

DeFi on Solana has seen an enormous expansion this year, with total value locked increasing 487% year-to-date to $8.34 billion, according to DefiLlama. However, Solana’s popularity has been driven by memecoin speculation, as creating them on the network with launchers such as Pump.fun is fast and cheap.

Solana DeFi growth YTD. Source: DefiLlama

The former governance token, Maker (MKR) $1,495.05 , has lost 30% since the rebrand when the protocol urged holders to convert to its new token, Sky (SKY).

The uptake has been slow since the new SKY governance token is not yet listed to trade on exchanges.

Magazine: Bitcoin dominance will fall in 2025: Benjamin Cowen, X Hall of Flame

Keep up with the latest defi news