Multi-Chain USDS Powers Ethereum and Solana DeFi

• Sky launches USDS on Solana, enabling seamless Ethereum-Solana interoperability and enhancing DeFi liquidity management.
• Spark Liquidity Layer automates multi-chain USDS liquidity, offering slippage-free swaps and stable borrowing for DeFi users.

Sky, formerly known as MakerDAO, has made a huge step forward by introducing its stablecoin USDS on the Solana network as an SPL token. Originally identified as DAI, USDS has already had a significant influence; as of November 15, 2024, USDS and DAI issued across several blockchains valued over $4.7 billion.

This addition to Solana enhances its stablecoin ecosystem, which now comprises USDT, USDC, PYUSD, and USDP, therefore aggregating a total issuance by November 1, 2024 of $3.8 billion.

Sky (formerly MakerDAO) now issues their USDS stablecoin on Solana as an SPL token.

USDS was previously issued as DAI. Over $4.7 billion USDS and DAI have already been issued across other blockchains as of Nov. 15th, according to @artemis_xyz.

USDS joins USDt (@Tether_to), USDC… pic.twitter.com/1OhNSvqfSv

— Solana (@solana) November 19, 2024

Solana’s Role in Expanding USDS Liquidity and Adoption

Between Ethereum and Solana, the integration ensures flawless interoperability for the governance token SKY and stablecoin USDS, therefore promoting more liquidity and strengthening Sky’s rising hegemony in the DeFi market.

For DeFi users, especially in multi-chain contexts, such developments are essential in improving accessibility and utility.

Sky has announced a short-term liquidity incentive program to help hasten adoption. Weekly distribution of up to two million SKY tokens will go to DeFi integrators and liquidity providers on Solana. Sky wants to increase the use and stability of USDS inside the ecosystem by rewarding these players, therefore promoting wider interaction with its stablecoin.

Furthermore, automating multi-chain USDS and sUSDS liquidity management depends much on the Spark Liquidity Layer, which CNF previously highlighted.

This invention will improve DeFi efficiency and scalability, allowing cross-chain swaps with zero slippage and steady borrowing rates, redefining the functionality of multi-chain stablecoins.

Beside that, as we previously noted, SparkLend provides USDS borrowing at competitive rates of 6.5%, therefore benefiting Sky’s ecosystem as well. Further increasing its appeal are customizable collateral options and a customized loan-to-value ratio.

Complementing these initiatives, Spark has committed $25 million in liquidity to the Lido market of Aave, aiming at $100 million to increase lending capability and assist more varied DeFi projects.