The Solana blockchain is currently home to Sky Protocol’s decentralised finance (DeFi) native stablecoin, USDS, which was previously known as Maker.
The launch is a strategic move to tap into Solana’s growing DeFi ecosystem, aiming to enhance liquidity and expand opportunities for lending, borrowing, and trading across its platforms.
Announcing the development on November 19th, 2024, via its official X (Twitter) account, Sky Protocol highlighted the significance of USDS as the first major DeFi-native stablecoin on Solana.
In the post, Sky stated, “USDS unlocks new opportunities for lending, borrowing, and trading across the ecosystem’s top DeFi platforms. Early adopters can access over 500,000 USDS in weekly rewards.”
Seamless Integration via Wormhole
The integration of USDS into Solana’s ecosystem is powered by Wormhole’s Native Token Transfer (NTT) technology. This enables smooth operations of USDS on Solana, making it easier for users to interact with the stablecoin across the blockchain. As an added incentive, Sky Protocol is offering an additional 100,000 USDS in weekly rewards to users who bridge the stablecoin to Solana.
Sky has also partnered with several key platforms to expand the accessibility of USDS within the Solana ecosystem. These integrations include popular decentralized exchanges and wallets such as Jupiter Exchange, Raydium Protocol, Orca, and Solflare Wallet, among others. By collaborating with these platforms, Sky aims to increase adoption and utility for USDS across Solana’s DeFi infrastructure.
A Vision for DeFi Growth
The launch of USDS on Solana marks the first phase of Sky Protocol’s broader strategy to enhance Solana’s total value locked (TVL) and liquidity within its DeFi ecosystem. According to DefiLlama, Solana’s DeFi sector has grown significantly this year, with TVL surging 487% year-to-date, reaching $8.34 billion.
While much of this growth has been driven by speculative activity in memecoins, Sky aims to provide a stable, DeFi-focused foundation for sustained expansion.
Sky Protocol also revealed its plans to roll out SkyLink, a feature pending governance approval. SkyLink aims to enhance native cross-chain support for both USDS and sUSDS, paving the way for seamless interactions across multiple blockchains. This initiative underscores Sky’s commitment to improving interoperability within the DeFi space.
Solana’s Growing Ecosystem
Solana’s rapid growth in the DeFi space is underpinned by its high-performance technology, low transaction costs, and strong ecosystem of consumer applications. These features have made it a preferred blockchain for developers and investors alike.
However, the network’s popularity has also been fueled by speculative activities, particularly in memecoins. Tools like Pump.fun, which enable the fast and inexpensive creation of tokens, have attracted significant attention.
Sky’s introduction of USDS seeks to shift this focus toward a more robust and stable DeFi infrastructure. As a DeFi-native stablecoin, USDS is designed to provide stability and reliability, essential for long-term growth within Solana’s ecosystem.
To encourage adoption, Sky Protocol is offering substantial rewards to early USDS users. These incentives, totalling over 500,000 USDS weekly, are aimed at attracting both retail and institutional participants to the Solana network.
Sky Protocol’s deployment of USDS on Solana represents a pivotal moment for both the protocol and the blockchain. By aligning its vision with Solana’s strengths, consumer applications, composability, and performance, Sky aims to create a more sustainable and interconnected DeFi ecosystem.