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Decentralized lending protocol Sky (formerly Maker) has deployed its USDS stablecoin on Solana, marking a strategic expansion into the blockchain’s growing decentralized finance (DeFi) ecosystem.
USDS: Solana’s First Major Native DeFi Stablecoin
In a November 19 announcement, Sky described USDS as “Solana’s first major native DeFi stablecoin”, enabling new avenues for lending, borrowing, and trading across Solana’s leading DeFi platforms.
“This launch is the first step in Sky’s strategy to increase Solana’s DeFi liquidity and Total Value Locked (TVL).”
Future plans include the introduction of SkyLink, a cross-chain bridge for USDS and its savings variant, sUSDS, pending governance approval.
Key Features of USDS
- 1:1 USD peg: A rebranded version of Maker’s DAI, designed for stability.
- Incentives for early adopters: Rewards for liquidity providers and DeFi users.
- Native integration via Wormhole: Ensures seamless transactions on Solana.
👉 Discover how USDS enhances DeFi liquidity
Incentive Programs for Solana Users
To drive adoption, Sky is offering:
| Protocol | Reward (Weekly/Monthly) | Eligibility |
|---|---|---|
| Kamino Finance | 200,000 USDC/USDS | Liquidity providers |
| Drift Protocol | 100,000 USDS | Stablecoin suppliers |
| Save Finance | 400,000 USDS (monthly) | USD-pegged asset depositors |
Market Position and Solana’s DeFi Growth
USDS ranks as the third-largest stablecoin by market cap ($5.3 billion), holding a 2.8% share in a market dominated by Tether (USDT) and USD Coin (USDC).
Solana’s DeFi ecosystem has surged 487% year-to-date, reaching $8.34 billion TVL (DefiLlama data). However, memecoin speculation—fueled by platforms like Pump.fun—has been a primary growth driver.
Challenges Post-Rebranding
- Governance token (SKY): Down 30% since the Maker rebrand, with slow adoption due to limited exchange listings.
👉 Explore Solana’s DeFi opportunities
FAQ Section
1. What is USDS?
USDS is a USD-pegged stablecoin launched by Sky, originally part of Maker’s DAI ecosystem.
2. How does USDS benefit Solana users?
It offers lower fees, faster transactions, and incentives for liquidity providers.
3. What is SkyLink?
A proposed cross-chain bridge to transfer USDS across blockchains.
4. Why did Sky rebrand from Maker?
To align with its expanded vision, though the transition faced initial community resistance.
5. How does USDS compete with USDT/USDC?
By focusing on DeFi-native utility and Solana’s scalability.
6. Are there risks in adopting USDS?
As with any stablecoin, maintaining the peg and governance decisions are critical factors.