Quick take:
- USDS has been exclusive to the Ethereum blockchain since its launch in 2014.
- Sky has entered into liquidity incentive agreements with Solana-based DeFi platforms Jupiter, Orca, Kamino, and Drift.
- The projects are set to distribute over 300,000 USDS in weekly liquidity incentives.
Sky, formerly Maker has deployed its USDS stablecoin on Solana. Formerly known as DAI, USDS is the third-largest stablecoin by market capitalisation with about $5.37 billion. Teher’s USDT maintains the top spot with over $128 billion, with Circle’s USDC a distance second with $37.28 billion.
Launched in 2014, the USDS stablecoin has remained exclusive on the Ethereum blockchain, before deciding to go multi-chain in its latest announcement. Sky has already entered into incentivised liquidity agreements with some of the leading DeFi platforms on Solana to accelerate adoption.
According to the announcement on Tuesday, Solana-based DeFi platforms Jupiter, Orca, Kamino, and Drift will distribute over 300,000 USDS in weekly liquidity incentives.
The USDS stablecoin is not the only one expanding to Solana. Earlier this year, PayPal’s PYUSD also made the same move. Stablecoin issuers are expanding to Solana and have highlighted the layer-1 blockchain’s processing speed, low transaction costs and the ability to support mass adoptions among the reasons for their decisions.
The stablecoin segment is one of the fattest growing in the crypto industry with cumulative transaction volume crossing $22 trillion globally at the end of September, as per Coinbase’s Q3 earnings report.
Last month, Athena Labs revealed Sky’s USDS stablecoin was among the tokens selected for its $46 million real-world asset (RWA) reserve fund. The company invested $13 million, approximately 29% of the fund USDS.
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