Kamino Finance

Solana

DeFi

USDS

Decentralized finance lending and borrowing protocol Sky, formerly known as Maker, has deployed its USDS stablecoin on Solana in an effort to tap into the blockchain’s growing decentralized finance (DeFi) ecosystem.&nbsp;
Sky said in a Nov. 19 X <a data-ct-non-breakable="null" href="https://x.com/SkyEcosystem/status/1858873704236683635" rel="null" target="null" text="null" title="null">post</a> that its USDS was “the first major DeFi-native stablecoin on Solana” and would allow new lending, borrowing and trading methods across Solana’s “top DeFi platforms.”
“Today’s launch marks the first step in Sky’s strategy to increase Solana’s DeFi liquidity and [total value locked],” it added. Sky said in the future, pending governance approval, it would roll out its SkyLink crosschain bridge for USDS and sUSDS, its “savings” version of the stablecoin.&nbsp;
USDS is a rebrand of the stablecoin Dai (DAI), which aims to stay at the value of 1 US dollar. Sky <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/maker-rebrands-sky-launches-usds-sky-token" rel="null" target="null" text="null" title="null">rebranded from</a> Maker in August, and confusion over the change led co-founder Rune Christensen to propose that it <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sky-endgame-community-push-to-rebrand-back-to-maker" rel="null" target="null" text="null" title="null">go back</a> to its original name, which <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sky-whales-kill-plan-rebrand-defi-protocol-maker" rel="null" target="null" text="null" title="null">four whales</a> squashed, so Sky stayed.&nbsp;
In a bid to get Solana users to take up the rebranded token, Sky is offering rewards for early adopters and stablecoin liquidity providers on various <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/decentralized-finance-a-beginners-guide-to-earning-passive-income-with-defi" rel="null" target="null" text="null" title="null">DeFi</a> protocols.&nbsp;
Kamino Finance users will get to access 200,000 USDS in weekly rewards for USDC/USDS liquidity providers and 100,000 USDS weekly for suppliers of the stablecoin.
Meanwhile, there will be 100,000 USDS rewards available for suppliers of the stablecoin to Drift Protocol. Those supplying the dollar-pegged asset to Save Finance will have the chance to earn a share of 400,000 USDS in monthly rewards.&nbsp;
The Sky team added that the protocol’s native integration via Wormhole’s Native Token Transfer (NTT) “enables seamless USDS operations on Solana.”
USDS is the third-largest stablecoin by market capitalization at $5.3 billion, giving it a 2.8% share of a market dominated by Tether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/tether-price-index" rel="null" target="null" text="null" title="null">USDT</a>) and USD Coin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/usdc-price-index" rel="null" target="null" text="null" title="null">USDC</a>), which command 88% between them.&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/strictly-deflationary-tokenomics-sky-proposal-mkr" rel="null" target="null" text="null" title="null">Sky co-founder proposes no new emissions for core token</a>
DeFi on Solana has seen an enormous expansion this year, with total value locked increasing 487% year-to-date to $8.34 billion, <a data-ct-non-breakable="null" href="https://defillama.com/chain/Solana?groupBy=cumulative" rel="null" target="null" text="null" title="null">according</a> to DefiLlama. However, Solana’s popularity has been driven by <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/memecoin-frenzy-sees-solana-based-dapps-rake-in-record-fees" rel="null" target="null" text="null" title="null">memecoin speculation</a>, as creating them on the network with launchers such as Pump.fun is fast and cheap.
<figure>
 <img alt="ウォールストリート, Stablecoin" src="https://s3.cointelegraph.com/uploads/2024-11/01934807-6490-7008-bcd7-8d6e1a84baf1" title="">
 <figcaption style="text-align: center;">
 Solana DeFi growth YTD. Source: DefiLlama
 </figcaption>
</figure>
The former governance token, Maker (<a data-ct-non-breakable="null" href="https://cointelegraph.com/maker-price-index" rel="null" target="null" text="null" title="null">MKR</a>), has lost 30% since the rebrand when the protocol urged holders to convert to its new token, Sky (SKY).&nbsp;
The uptake has been slow since the new SKY governance token is not yet listed to trade on exchanges.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-dominance-crypto-predictions-bull-run-benjamin-cowen-hall-of-flame/" rel="null" target="null" text="null" title="null">Bitcoin dominance will fall in 2025: Benjamin Cowen, X Hall of Flame</a>

Sky, formerly Maker, launches USDS stablecoin on Solana

Cointelegraph

Other articles published on Nov 20, 2024

FTX’s Gary Wang spared prison time in fraud case

Charles Hoskinson says Coinbase CEO is the “only one candidate” for Crypto-Czar at the White House

Coinbase Delists WBTC Amid Concerns Over Justin Sun's Protocol Influence

10x Potential! The Best Cryptos to Buy Before the November Rally Ends

Leading Forbes Analyst Says High Dogecoin And Cardano Price Are A Hindrance To High Returns, Here...

MicroStrategy’s Bitcoin Holdings Reach $24B with Latest Acquisition

Join our free newsletter for daily crypto updates!