Sky, formerly known as MakerDAO, is offering a $500,000 USDS reward to early users and liquidity providers for the stablecoin.
The Lending & Borrowing DeFi protocol Sky, formerly known as Maker, has deployed the USDS stablecoin on Solana to tap into the growing decentralized finance (DeFi) ecosystem of this blockchain.
Sky said in a post on X on November 19 that USDS is the "first major stablecoin dedicated to DeFi on Solana" and will open up new lending, borrowing, and trading opportunities on Solana's "leading DeFi platforms."
"Today's launch marks the first step in Sky's strategy to increase DeFi liquidity and total value locked (TVL) on Solana," Sky added. They also said that in the future, after community governance approval, they will deploy the cross-chain SkyLink bridge for USDS and its "savings" version sUSDS.
USDS is the new name for the Dai (DAI) stablecoin, designed to maintain a $1 US dollar value. Sky rebranded from Maker in August, and the confusion around this change led co-founder Rune Christensen to propose reverting to the old name. However, four major "whales" rejected this proposal, so the Sky name remains.
To incentivize Solana users to use the new stablecoin, Sky is providing rewards for early users and stablecoin liquidity providers across various DeFi protocols:
- Kamino Finance users: Receive 200,000 USDS per week for USDC/USDS liquidity providers and 100,000 USDS per week for USDS providers.
- Drift Protocol users: Have 100,000 USDS in rewards for stablecoin providers.
- Save Finance users: Chance to earn a share of 400,000 USDS in monthly rewards for stablecoin provision.
The Sky team further stated that the direct integration through Wormhole's Native Token Transfer (NTT) "helps make USDS operations on Solana seamless."
USDS is now the third-largest stablecoin by market capitalization, reaching $5.3 billion and a 2.8% market share, while Tether (USDT) and USD Coin (USDC) dominate with 88% market share.
DeFi on Solana has seen strong growth this year, with total value locked (TVL) increasing 487% YTD to $8.34 billion, according to defillama. However, Solana's popularity has largely been driven by meme coin speculation, thanks to the ability to quickly and cheaply create them using tools like Pump.fun.
However, the former governance token, Maker, has declined 30% since the rebrand, as the protocol encourages holders to transition to the new token, Sky (SKY).
The uptake of the new token has been slow, as SKY is not yet listed on major exchanges.
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The article Sky launches USDS stablecoin on Solana first appeared on CoinMoi.
