USDS

USDS is a decentralized stablecoin introduced by Sky Protocol, formerly known as MakerDAO. Launched in August 2024, USDS serves as an upgraded version of the original DAI stablecoin, maintaining a 1:1 peg to the U.S. dollar. This rebranding effort aims to enhance accessibility and scalability within the decentralized finance (DeFi) ecosystem.

In November 2024, Sky Protocol expanded USDS to the Solana blockchain, marking it as the first major DeFi-native stablecoin on Solana. This deployment seeks to boost Solana's DeFi liquidity and total value locked (TVL), offering users new opportunities for lending, borrowing, and trading. The integration utilizes Wormhole's Native Token Transfer (NTT) technology, ensuring seamless USDS operations across both Solana and Ethereum without the need for wrapped tokens.

To encourage early adoption, Sky Protocol has implemented several incentive programs. For instance, Kamino Finance users can earn up to 200,000 USDS weekly by providing liquidity to USDC/USDS pairs, with an additional 100,000 USDS weekly for stablecoin suppliers. Similar rewards are available on platforms like Drift Protocol and Save Finance, aiming to foster active participation and enhance liquidity within the ecosystem.

Overall, USDS stands as a cornerstone of the Sky Protocol, providing a stable and efficient financial tool designed to meet the evolving needs of a multi-chain DeFi ecosystem.