- Sky launches USDS on Solana, boosting DeFi liquidity with rewards for early adopters and liquidity providers.
- Solana gains its first major DeFi-native stablecoin as Sky integrates USDS via Wormhole's token transfer system.
- Sky plans SkyLink bridge for seamless USDS operations, enhancing Solana’s DeFi ecosystem with robust incentives.
Sky, previously called Maker, has officially launched its USDS stablecoin on Solana. This strategic move is intended to capitalize on Solana’s quickly growing decentralized finance ecosystem.
Sky announced that USDS became the first major DeFi Native stablecoin on Solana. The stablecoin will open up new possibilities for lending, borrowing and trading on Solana’s top DeFi platforms. The team says this launch is key to their broader plan of increasing Solana’s DeFi liquidity and total value locked.
Incentives for Early Adoption
Sky has introduced rewards to encourage Solana users to adopt the rebranded stablecoin. Liquidity providers on Kamino Finance can earn weekly rewards totaling 300,000 USDS. Drift Protocol and Save Finance users will also receive incentives. Save Finance alone offers 400,000 USDS in monthly rewards for stablecoin suppliers.
Sky aims to make these integrations seamless through Wormhole’s Native Token Transfer (NTT). This system allows efficient USDS transactions on Solana’s blockchain. Such interoperability enhances user experience and ensures smooth operations.
Rebranding Efforts and Market Position
USDS, previously known as Dai (DAI), maintains a value pegged to the US dollar. Sky underwent a rebranding in August, which initially caused some confusion among users. Currently, USDS is the third-largest stablecoin, holding a market share of 2.8% with a market capitalization of $5.3 billion.
Sky, however, still trails behind dominant players like Tether and USD Coin, which collectively hold 88% of the stablecoin market.
SkyLink and Future Plans
Sky plans to roll out the SkyLink cross-chain bridge to strengthen its integration with Solana further. This bridge will support USDS and its savings version, sUSDS. The team is awaiting governance approval for this expansion, which could significantly enhance capital deployment on trusted Solana protocols.
To drive adoption, it will launch a temporary incentive program offering SKY tokens to liquidity providers. The program focuses on boosting liquidity for USDS/USDC and USDS/sUSDS trading pairs. the company aims to allocate up to 2 million SKY tokens weekly during the initial phase.
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