Solana Traders Flock to New Stablecoin USDS by Sky
Sky's recent stablecoin, USDS, rapidly gains traction on the Solana network, outpacing competitors in its early adoption.
Solana traders are quickly adopting the latest stablecoin in their decentralized finance (DeFi) arsenal: USDS, issued by Sky (formerly MakerDAO).
Less than 24 hours after its launch, USDS's circulating supply on Solana surpassed $89 million. This rapid growth positions it as the fastest-growing stablecoin on Solana, outpacing recent competition such as PayPal's PYUSD.
Sky is incentivizing this growth, investing $2 million monthly to attract traders to swap into USDS. Rooter, the leader of borrowing and lending protocol Save, mentioned that they are also distributing 400,000 USDS monthly to contributors of this new stablecoin.
“With Sky heavily incentivizing it's no surprise that USDS is growing so fast.”
“Avec Sky qui incite énormément, il n’est pas surprenant que USDS croisse si vite.”
Currently, USDS lenders are enjoying yields exceeding 20%, making it appealing against USDC, which has maintained popularity on Solana. New token issuers typically utilize incentive payouts to foster initial adoption, a strategy observed with PayPal’s stablecoin, which spent approximately $10 million in incentives.
Sky’s approach includes encouraging traders to transition funds into Solana via Wormhole, a bridging service, which further amplifies the circulating supply. While incentives boost participation, the flow of free liquidity may not last indefinitely. When rewards taper off, USDS users may revert to USDC or other stablecoins, as seen previously with PYUSD.
“It’s all about making inroads while the incentives are live, getting brand recognition or integrations,” Rooter added.
