Sky Protocol, previously Maker, continues to increase its USDS choices, reflecting rising demand for passive yield. The protocol retains a part of the prevailing DAI providing, which can also be actively utilized in decentralized transactions and lending.
Sky Protocol’s stablecoin, USDS, reached a brand new provide peak above 1.8 billion, following accelerated swaps from DAI. Each the brand new and previous stablecoins have a complete provide of over 5.8 billion and are utilized in lively and passive DeFi actions. USDS remains to be mining as DAI’s swap mechanism remains to be open.
The primary driving power behind USDS’s rising provide is the 12.5% annual yield for the token. A complete of two.1 million USDS and DAI have been blocked from staking in trade for the proceeds.
The brand new supply milestone got here after USDS surpassed 1.5 billion tokens on January 3. The token expanded within the early days of the brand new 12 months, reaching peak provide with fast progress on Ethereum and smaller additions on Solana.
The whole provide of USDS exceeds 1.8 billion and reaches a brand new file. https://t.co/JW2MR3JzbG pic.twitter.com/GpWaUNIsvo
— Sky (@SkyEcosystem) January 10, 2025
The asset is within the early levels of spreading to different networks. So far, roughly 1.53 billion of the tokens are on Ethereum.
The Solana model, with over 102,000 tokens, is a take a look at for the later part of Sky Protocol’s full launch. The primary purpose is to supply the identical DeFi companies and returns, however on Solana’s extremely scalable community.
USDS additionally ready for its growth on Base, providing outsized returns to the primary liquidity suppliers on Aerodrome. Within the coming weeks, USDS will proceed its inflows into Base, which already owns greater than $3.5 billion value of different stablecoins.
Sky Protocol and Maker’s legacy vaults are nonetheless among the many finest DeFi apps for passive revenue. Some partnerships are achieved by way of the biggest subDAO, Spark Protocol, which has launched its personal set of Aave vaults. Over time, Sky Protocol will goal to regain Maker’s former place as one of many largest stablecoin issuers and passive revenue suppliers.
USDS adjustments buying and selling profile with illustration on Solana
The expansion of USDS can also be accompanied by elevated exercise and income on Solana. The shift got here in November, when Sky strategically moved to the brand new chain and displaced volumes on Ethereum.
The extremely lively USDS on Solana signifies a development to undertake a few of the older protocols on Ethereum. Latest months have seen Solana exercise rise, with potential demand for passive returns to lock in income.

USDS’s providing expanded once more in early 2025, getting ready for better affect over Solana and Base. | Supply: Dune Analytics
The whole worth locked on Solana elevated to $8.54 billionwhich has grown sooner prior to now three months. The TVL rose not solely as a result of increased nominal worth of SOL, but additionally as a result of influx of tokens and stablecoins.
The stablecoins on Solana have already reached $5.79 billion, with USDC utilization dominating. The USDS market share has elevated to approx 1% of the whole providing, and remains to be forward of different area of interest stablecoins.
At this early stage, USDS utilization on Solana is extra restricted. On Ethereum, USDS transactions attain over $30,000, whereas the Solana model has a mean worth transactions of roughly $3,000, because the asset remains to be in use.
The USDS on Solana remains to be unfold throughout a handful of whale portfolios. One of many main ones addresses owns 1.5 million USDS and is without doubt one of the largest return recipients. The highest 4 addresses on Solana personal greater than 50% of the USDS provide as retail portfolios proceed to overhaul the whales. USDS growth began from November 19, with a fast spike in exercise.
USDS additionally trades on Raydium and Aerodrome, albeit with a caveat as it’s a coinable and freezeable asset. Which means some holders may have to contemplate the choice of locked tokens if they don’t meet the phrases of the Sky Protocol.
The Raydium USDS/USDC pair has over $69 million in liquidity, whereas Aerodrome has the identical $1.2 million. The token is primarily for staking and passive yield and isn’t a part of the meme token ecosystem.
A step-by-step system to launch your Web3 profession and land high-paying crypto jobs in 90 days.