Sky Launches USDS Stablecoin on Solana to Enhance Network’s DeFi Liquidity and TVL

Sky, formerly known as Maker, has launched its USDS stablecoin on Solana to introduce the network’s “first major Defi-native stablecoin.”

Cryptocurrency infrastructure firm Sky, previously known as Maker, has introduced its USDS stablecoin on Solana (SOL) in a bid to integrate the network’s “first major Defi-native stablecoin.”

According to a Nov. 19 announcement, USDS is set to bolster lending, borrowing, and trading on the network’s leading DeFi platforms, with the launch serving as the first step in Sky’s strategy to “increase Solana’s DeFi liquidity and TVL.”

With USDS, Sky aims to capture a share of the burgeoning decentralized finance market on Solana, which has seen a surge in daily trading volumes and total value locked (TVL) since the start of the year.

Solana’s TVL had grown from $1.4 billion on Jan. 1 to over $8.3 billion at press time, while its daily trading volume recently hit an all-time high of $7.14 billion, data from DefiLlama shows.

“Sky’s vision is aligning with Solana’s strong ecosystem of consumer apps, composability, and high-performance technology,” the announcement adds.

The integration of USDS on Solana is powered by Wormhole’s Native Token Transfer, which enables the stablecoin to become natively multichain, available on both Solana and Ethereum (ETH) without the need for wrapped tokens, ensuring a unified supply across both chain ecosystems.

The NTT also allows Sky to bridge its governance token, SKY, to the Solana network.

As part of the launch, Sky is offering incentives to encourage early adoption, including rewards for users and liquidity providers engaging with USDS across four Solana DeFi protocols.

Users of Kamino Finance will receive 200,000 USDS weekly for providing liquidity to USDC/USDS pairs, along with an additional 100,000 USDS for stablecoin suppliers.

Meanwhile, Drift Protocol users will be able to earn a portion of 100,000 USDS in weekly rewards for supplying USDS, while Save Finance participants can earn a share of 400,000 USDS, which will be distributed monthly for their contributions to stablecoin liquidity.

Sky also plans to introduce SkyLink, a cross-chain bridge that will connect USDS and sUSDS, its savings-focused version of the stablecoin.

This rollout, which is subject to governance approval, is set to expand cross-chain operability for USDS holders.

Launched in September, USDS is a dollar-pegged stablecoin that was created as a rebrand of the Dai stablecoin. It is currently the third-largest stablecoin by market capitalization, valued at $5.23 billion, putting it in competition with major players like Tether’s USDT and Circle’s USDC.

Together, the two stablecoins account for more than 90% of the overall stablecoin market, which stands at $184.7 billion, according to DefiLlama.

In other related news, Sky recently attempted to revert to the Maker branding following confusion around its rebranding, but the proposal was ultimately rejected.