In summary
- Sky launched the USDS stablecoin as DeFi native on Solana, replacing DAI in September.
- USDS seeks to power lending, borrowing and trading on Solana DeFi platforms.
- The expansion to Solana was enabled by Wormhole, connecting multiple blockchains.
The decentralized Solana (DeFi) ecosystem is growing: Sky—formerly known as MakerDAO—has launched its new stablecoin on the Cryptocurrency network.
According to Sky, the token, USDS, will be the native DeFi stablecoin on Solana.
Sky’s USDS stablecoin was launched in September. Sky runs on Ethereum and is one of the oldest DeFi projects in the space. USDS replaced DAI, the long-lived Ethereum stablecoin; DAI holders were able to upgrade to USDS starting in September.
“As the first major native DeFi stablecoin on Solana, USDS unlocks new opportunities for lending, borrowing, and trading on the ecosystem’s leading DeFi platforms,” the project said on X (formerly Twitter).
Rune Christensen, co-founder of Sky, told Decrypt that the move “marks the beginning of a new multi-chain era for USDS.”
“Solana’s broad consumer adoption and highly active community align perfectly with Sky’s mission to make DeFi accessible to more people,” he said.
Solana’s expansion was enabled by Wormhole, a cross-chain protocol that allows movement between compatible blockchains.
Solana is a rapidly growing crypto ecosystem, especially in the DeFi space: DeFiLlama data shows it has $8.2 billion locked in its DeFi applications, the second-largest amount of value of all major blockchains, after Ethereum.
Solana competes with Ethereum by being a faster and cheaper network for token transactions and interaction with decentralized applications (dapps).
Decentralized finance, or DeFi, refers to projects in the crypto space that want to replace traditional financial services such as loans and credits. However, apps released in this space are often experimental and therefore prone to hacks and exploits, as well as price drops.
MakerDAO changed its name to Sky in September and allows users to borrow and lend cryptocurrencies. Stablecoins are a digital asset that is pegged to another asset, usually the US dollar. Traders in this space can use them to quickly enter and exit cryptocurrency trades without using banks.
Edited by Andrew Hayward
Editor’s note: This story was updated after publication to include details about Wormhole.
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