Sky, formerly known as MakerDAO, is planning to launch its decentralized stablecoin, USDS, on the Solana blockchain using the Wormhole interoperability protocol. Rune Christensen, Sky’s founder, made the announcement during the Solana Breakpoint conference. Sky is currently the sixth-largest DeFi protocol, with $5.5 billion in assets locked on the platform.
Christensen explained that integrating with Solana will allow for rapid expansion and deep integration of Sky on the blockchain. The protocol’s tokens — SKY, USDS, and sUSDS — will be bridged to Solana using Wormhole. While Solana is not as large as Ethereum, it has significant growth potential, with established DeFi primitives providing a foundation for expansion. Sky aims to bring decentralized stablecoin features, such as native savings rates and token rewards, to Solana.
Despite the challenges of integrating with Solana due to differences in infrastructure, using Wormhole as a short-term solution will allow Sky to build momentum ahead of the full Solana SkyLink deployment. Sky also plans to launch a short-term liquidity incentive program, offering SKY tokens to DeFi integrators and liquidity providers on Solana to create early network effects. The program will be managed by Accessibility Facilitators and will incentivize key liquidity areas for the stablecoin to operate smoothly on Solana.
The incentive program will offer up to 2 million SKY tokens per week, with plans to gradually reduce rewards once the initial phase is complete. These temporary rewards will end with the launch of Solana SkyLink and be replaced by Sky’s native token rewards — SKY, CLE, and SPK tokens. Input from both the Sky and Solana DeFi communities will guide the program, ensuring its effectiveness and sustainability.
In summary, Sky’s integration with Solana through Wormhole and the launch of a liquidity incentive program aim to bring decentralized stablecoin features and network effects to the Solana blockchain. This move will not only expand Sky’s reach but also contribute to the growth of the DeFi ecosystem on Solana. With the potential for significant growth on Solana, Sky’s presence on the blockchain could pave the way for further innovation in decentralized finance.
