Sky Deploys USDS Stablecoin on Solana: $2 Million Incentives for DeFi Pools

Decentralized finance ecosystem Sky (formerly known as MakerDAO) has announced the official launch of its flagship stablecoin USDS and governance token SKY on the Solana mainnet. The transfer of assets is implemented based on the cross-chain standard Wormhole Native Token Transfers (NTT), which eliminates the use of classic insecure wrappers (wrapped tokens). To celebrate the launch, the project has allocated a $2 million weekly liquidity incentive program for key protocols in the Solana ecosystem.

How is native-USDS transfer implemented without vulnerable-bridge-lockers?

Instead of the traditional “lock in an Ethereum smart contract and issue a wrapped token on Solana” model, Wormhole NTT technology provides a burn-and-mint mechanism. When sending USDS from the Ethereum network, tokens are burned on the original chain and minted natively on Solana while maintaining the same contract address and functionality. This eliminates the systemic risk of breaches of bridge locking pools, where attackers have historically stolen billions of dollars, and guarantees 100% parity with Sky’s treasury reserves.

What kind of profitability-and-conditions do users receive on Solana-platforms?

USDS integration started simultaneously on leading platforms: Kamino and Drift landing protocols, as well as the automated market maker Orca. Users can deposit USDS into the Sky Savings Rate (SSR) directly through Phantom and Solflare wallets, receiving a base risk-free rate of up to 6% per annum in USD without having to pay gas on the Ethereum network. An additional $2 million in weekly grants in SKY tokens are being distributed to liquidity providers in USDC and SOL trading pairs.

How does Sky’s cross-chain expansion threaten the dominance of the USDT stablecoin?

Scaling USDS on Solana is a direct blow to the monopoly of USDT and USDC in high-speed blockchains. Until now, Solana users have been missing a scalable, decentralized, institutional-grade stablecoin that delivers passive income directly to their wallet balance. Sky’s successful liquidity transfer combines MakerDAO’s trillion-dollar collateral asset base with the instant transaction speeds and penny fees of Solana, increasing competition among stablecoin issuers ahead of a new bull cycle.

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Author / Crypto Analyst at 

Crypto market analyst with seven years of experience in blockchain technologies and digital asset investing. Active in the cryptocurrency space since 2017, having navigated multiple bull runs and bear market cycles. Specializes in blockchain project analysis, crypto exchanges, DeFi, and investment strategies. Dedicated to helping readers navigate and understand the digital asset economy.

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