CandleFocus

Juiced USDS Yields Woo Solana Traders to Sky's Stablecoin

Author: Content Editor
Solana traders are quickly adopting the newest stablecoin on the platform, USDS, which is issued by Sky. Within its first day of launch, USDS has already surpassed $89 million in circulating supply, making it Solana's fastest-growing stablecoin. Sky is spending $2 million per month to incentivize traders to swap into USDS and use it, attracting yield-chasing stable farmers who are seeking yields in excess of 20%. This growth is not unexpected as new token issuers often boost initial adoption through incentive payouts. However, the free money won't last forever, and when incentives dry out, users may swap back into other stablecoins. Sky is also incentivizing traders to move their money into Solana via Wormhole, further increasing USDS's circulating supply. The focus is on building brand recognition and integrations while the incentives are active.

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