By Philip Maina

2 weeks agoThu Nov 21 2024 11:28:30

Reading Time: 2 minutes

  • DeFi platform Sky has launched its own stablecoin known as USDS
  • Sky intends to use the coin to venture deeper into the DeFi world
  • USDS is a rebrand of the DAI stablecoin and is powered by the Solana blockchain

DeFi platform Sky, formerly Maker, has launched a Solana-based stablecoin known as USDS to venture deeper into the DeFi world. Sky described the stablecoin as the first on Solana to focus on the blockchain ’s DeFi ecosystem, adding that USDS supports trading, borrowing, and lending functionalities. Sky disclosed that it’s planning to create a bridge to make the token available on other blockchains, something that may increase its usage and adoption.

USDS Replaces DAI

In an x post, Sky revealed that the new token is on several Solana DeFi protocols like Kamino Finance, Drift Protocol, Save Finance, and Jito. The platform will also offer “an extra 100,000 USDS in weekly rewards to users who bridge” the token to the network.

Sky said that the token’s launch aligns with Solana’s ecosystem of “consumer apps […] and high-performance technology.” The stablecoin comes to take over from DAI which was associated with Maker. USDS will have a 1:1 peg to the US dollar.

USDS holds less than 3% of the stablecoin market share which USDC and USDT dominate. The token’s arrival on Solana comes when the blockchain is recording an uptick in DeFi activities with the total value locked on the network reaching more than $8 billion.

Sky Community To Return to Maker?

It also comes a month after Sky’s community was reported to be contemplating returning to the Maker brand arguing that the rebrand created confusion leading to a drop in usage. Sky’s co-founder Rune Christensen said at the time that the protocol can choose to retain the Sky brand, “recenter the Maker brand with a refreshed brand identity,” or return the previous brand name.

With the community undecided on whether to return to Maker or popularize the Sky brand, it’s to be seen whether the DeFi community will embrace the new token.