Sky Protocol, formerly Maker, continues to expand USDS offering, reflecting growing demand for passive yield. The protocol retains some of the legacy supply of DAI, which is also actively used in decentralized trading and lending.
Sky protocol stablecoin USDS hit a new supply peak above 1.8 billion, following accelerated DAI exchanges. Both the new and legacy stablecoins have a total supply of over 5.8 billion and are used in active and passive DeFi activities. The USDS is still in the process of being minted, as the DAI exchange mechanism is still open.
The main driver of the growing supply of USDS is the token’s 12.5% ​​annualized return. A total of 2.1 million USD and DAI have been locked for staking in exchange for performance.
The new supply milestone came after USDS surpassed 1.5 billion tokens on January 3. The token expanded in the early days of the new year, reaching peak supply with rapid growth on Ethereum and smaller additions on Solana.
Total USD supply exceeds 1.8 billion and reaches a new all-time high. pic.twitter.com/GpWaUNIsvo
– Sky (@SkyEcosystem) January 10, 2025
The asset is in its initial stages of expansion to other networks. So far, around 1.53 billion tokens are on Ethereum.
The Solana version, with over 102,000 tokens, is a test for the later stage of the full launch of the Sky Protocol. The main goal is to offer the same DeFi services and performance but on the much more scalable Solana network.
USDS also prepared for its expansion on Base, offering huge returns for early liquidity providers on Aerodrome. In the coming weeks, USDS will continue its inflows into Base, which already holds over $3.5 billion in other stablecoins.
Sky Protocol and legacy Maker vaults remain some of the top DeFi applications for passive income. Some of the partnerships are achieved through the largest subDAO, Spark Protocol, which has launched its own set of Aave vaults. Over time, Sky Protocol will aim to regain Maker’s former position as one of the leading stablecoin issuers and passive income providers.
USDS changes its commercial profile with representation in Solana
The growth of the USDS is also accompanied by greater activity and turnover in Solana. The change came in November, when Sky strategically moved to the new chain, displacing volumes on Ethereum.
The highly active USDS on Solana points to a trend towards adopting some of Ethereum’s legacy protocols. Recent months have seen an increase in Solana activity, with potential demand for passive returns to secure profits.
Total value locked in Solana increased to $8.54 billionexpanding more rapidly in the last three months. The TVL increased not only due to the higher nominal price of SOL but also due to inflows of tokens and stablecoins.
Solana stablecoins have already reached $5.79 billion, with USDC predominating. USDS market share has risen to around 1% of the entire offering, still ahead of other niche stablecoins.
At this early stage, the use of USDS on Solana is more limited. On Ethereum, transactions in USDS exceed $30,000, while the Solana version carries an average of proceedings of around $3,000 as the asset is still developing adoption.
Solana’s USDS is still spread across a handful of whale wallets. one of the leaders addresses He owns $1.5 million and is one of the top performance recipients. Solana’s top 4 addresses hold over 50% of the USDS supply as retail wallets are still catching up with the whales. The USDS expansion began from November 19, with a rapid increase in activity.
USDS is also listed on Raydium and Aerodrome, although with a caveat of being a mintable and freezable asset. This means that some of the holders may have to consider the possibility of locked tokens if they do not comply with the terms and conditions of the Sky Protocol.
The Raydium USDS/USDC pair has over $69 million in liquidity, while Aerodrome has 1.2 million dollars. The token is primarily intended for staking and passive performance and is not part of the meme token ecosystem.
From Zero to Web3 Pro: Your 90-Day Professional Launch Plan
Fountain:
