Solana (SOL) decentralised finance (DeFi) liquidity is up for a major boost as a new stablecoin USDS has been launched by Sky, previously known as Maker.
The move aims to capitalise the Solana's blockchain's DeFi ecosystem growth. With this launch, USDS have become the first big DeFi native stablecoin on the network.
This aims to enhance the Solana network's trading, borrowing and lending possibilities as new avenues will open up in the DeFi platforms. With this move, Solana's total value locked (TVL) and DeFi liquidity will get a major boost.
For this, Sky has launched rewards for Solana users who are willing to adopt the rebranded stablecoin. This will make liquidity providers on Kamino Finance 300,000 USDS in weekly rewards. Moreover, crypto users in Save Finance and Drift Protocol are also slated to get incentives. Save Finance will provide monthly rewards of 400,000 USDS to stablecoin suppliers.
Through Wormhole’s Native Token Transfer (NTT), these integrations will be made seamless, revealed Sky. This will make way for efficient USDS transactions as it ensures smooth operations and increases user experience along the Solana blockchain
The USDS stablecoin was earlier called Dai (DAI) which was pegged to the US dollar. After Sky’s rebranding in August, there was confusion about the stablecoin amongst users which led to this change of name. At present, USDS has a market capitalisation of $5.3 billion which accounts for 2.8% of the market share, making it the third largest stablecoin after USDT and USDC.
Tether and USDC together hold 88% of the stablecoin market share, which shows how far behind USDS is.
Sky will soon roll out the SkyLink cross-chain bridge to integrate better into the Solana network, and this bridge will use USDS savings version sUSDS along with the native stablecoin.
At present, Sky is waiting for governance approval to make this expansion happen. This is likely to improve capital deployment across SOL protocols.
Sky will also drive USDS stablecoin adoption by offering incentives like SKY tokens to liquidity providers. The incentive program aims to increase USDS/sUSDS and USDS/USDC trading pairs’ liquidity.
The company has revealed that 2 million SKY tokens will be allotted on a weekly basis in the initial phase of the project.
At the time of writing, USDS was up 0.08% to trade at $0.9975 while the market cap rose to $5.24 billion and trading volume gained 73.10% to be at $7.85 million.