According to Blockworks, Sky, previously known as MakerDAO, is contemplating the deployment of its native tokens on the Solana blockchain. This move was detailed by co-founder Rune Christensen in a forum post. Christensen has shown a long-standing interest in Solana, even suggesting a shift to a fork of the Solana codebase last year. The timing appears strategic as Sky aims to increase the adoption of its decentralized stablecoins amidst Solana DeFi's recent growth.
Sky, which launched as MakerDAO in 2015 and introduced the DAI stablecoin in 2017, has been a significant player in the DeFi space. DAI, now rebranded as USDS, remains the third-largest stablecoin by market capitalization, following USDT and USDC. Sky's peg stability module, which helps maintain USDS' peg by taking in USDC and issuing USDS, is its most-used product. Additionally, locking DAI in Sky’s Spark protocol to receive elevated yields via sDAI (now sUSDS) is also popular.
To expand the PSM and Spark, Sky is now looking to Solana, where it plans to launch USDS and yield-bearing sUSDS. Initially, the deployment will occur via the Wormhole bridge as Sky prepares for Solana SkyLink, a native launch of Sky on Solana. Solana is seen as a promising venue for stablecoins, with a stablecoin market capitalization that is 68% USDC, according to DeFiLlama. This dominance was previously higher before PayPal’s PYUSD stablecoin began a Solana liquidity incentive program.
Sky intends to follow a similar path to PYUSD, with Christensen mentioning a liquidity incentive program to make USDS and sUSDS liquid on decentralized exchanges. This program could resemble PYUSD’s incentives in the short term, but once SkyLink is operational, the stablecoin will offer additional features. Christensen highlighted that Solana is a growing DeFi ecosystem lacking a major decentralized stablecoin with built-in rewards.
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