Sky, Formerly Maker, Brings First Major DeFi-Native Stablecoin to Solana With USDS

• Sky’s USDS stablecoin has launched on Solana.
• The launch marks the first step in Sky’s strategy “to increase Solana’s DeFi liquidity and TVL.”
• Sky is offering rewards for early adopters of the token.

Decentralized finance lending protocol Sky, formerly Maker, has launched its USDS stablecoin on Solana.

The news comes as Sky looks to capitalize on the growing popularity of Solana’s decentralized finance (DeFi) ecosystem and hopefully move away from the confusion of its recent rebrand.

USDS on Solana

Sky launched its USDS rebranded stablecoin in September, taking over from DAI. Holders of DAI were able to upgrade to USDS upon its launch.

The decentralized organization, built on the Ethereum blockchain, is one of the earliest and most prominent DeFi platforms.

USDS will now operate as the DeFi-native stablecoin on Solana, according to Sky.

In a post on X, Sky said: “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 launch marks the first step in Sky’s strategy “to increase Solana’s DeFi liquidity and TVL.”

“Sky’s vision is aligning with Solana’s strong ecosystem of consumer apps, composability, and high-performance technology,” the firm wrote.

Rewards for Early Adopters

Sky is offering rewards for early adopters of the token in order to attract Solana users to the new coin.

Drift Protocol users will receive 100,000 USDS in weekly rewards, while Kamino Finance users will receive 200,000 USDS.

There will be an extra 100,000 USDS in weekly rewards for users who use the protocol’s native integration via Wormhole’s Native Token Transfer to bridge USDS to the network.

Freeze Function Controversy

The news comes after Sky found itself in hot water shortly after the launch of its rebranded USDS stablecoin.

Sky faced backlash when an X post alleged that DAI, Sky’s flagship stablecoin, was introducing a freeze function.

Many critics quickly slammed the firm, claiming it was shady to have a decentralized stablecoin with a censorship tool.

However, co-founder Rune Christensen called the claims misleading, urging users that DAI would continue functioning as before.

Christensen clarified that only the new stablecoin USDS has the freeze function, while DAI will remain immutable. He also added that the DAI holders can upgrade to USDS, but it’s not mandatory.