Sky, formerly MakerDAO, has launched its new USDS stablecoin on the Solana network, positioning it as Solana’s DeFi-native stablecoin.
The Solana decentralized ecosystem (DeFi) is expanding, as Sky—formerly known as MakerDAO—has implemented its latest stablecoin on the crypto network.
Sky has stated that the USDS token will serve as the DeFi-native stablecoin on Solana.
Transitioning to Solana Network
In September, Sky introduced its USDS stablecoin. Sky is one of the oldest DeFi initiatives in the space and is powered by Ethereum. DAI, the Ethereum stablecoin that had been in existence for an extended period, was superseded by USDS. As of September, holders of DAI were permitted to upgrade to USDS.
“As the first major DeFi-native stablecoin on Solana, USDS unlocks new opportunities for lending, borrowing and trading across the ecosystem’s top DeFi platforms,” the project said on X (formerly Twitter).
Rune Christensen, co-founder of Sky, told Decrypt that the move “marks the beginning of a new multi-chain era for USDS.”
“Solana’s broad consumer adoption and highly active community align perfectly with Sky’s mission to make DeFi accessible to more people,” he said.
Solana is a rapidly expanding crypto ecosystem, particularly in the DeFi sector. According to DeFiLlama data, its DeFi applications contain $8.2 billion in value, the second-largest amount of value among all main blockchains, following Ethereum.
By functioning as a more efficient and cost-effective network for the exchange of tokens and the interaction with decentralized applications (dapps), Solana competes with Ethereum.
Decentralized finance, or DeFi, is a term used to describe initiatives in the crypto space that aim to replace conventional financial services, such as lending and borrowing. However, the applications that are released in the sphere are generally experimental and, as a result, are susceptible to price collapses, hacks, and exploits.
In September, Sky underwent a rebranding process from MakerDAO and now enables users to borrow and lend cryptocurrencies. Stablecoins are digital assets that are typically linked to the U.S. currency. Traders in the industry can utilize them to swiftly enter and exit crypto trades without the need to rely on banks.