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Sky Protocol grows USDS supply to new record as demand for yield remains strong

Author: Content Editor
Sky Protocol, formerly known as Maker, has seen an increase in the supply of its stablecoin USDS, reflecting a growing demand for passive yield. The total supply of USDS has surpassed 1.8 billion, with both the new and legacy stablecoins being actively used in decentralized trades and lending. The chief driver of this supply growth is the 12.5% annualized yield for the token, leading to 2.1 million USDS and DAI being locked for staking. USDS is also expanding to other networks, with a test version on Solana. The goal is to offer the same DeFi services and yield on Solana's more scalable network. Additionally, USDS is preparing for expansion on Base by offering outsized yield for liquidity providers on Aerodrome. Sky Protocol aims to regain its position as one of the top stablecoin issuers and providers of passive income. With the growth of USDS, Solana has seen increased activity and turnover, with the total value locked on the network increasing to $8.54 billion. However, USDS usage on Solana is still limited compared to Ethereum. The token is trading on Raydium and Aerodrome, but holders need to be aware of the possibility of locked tokens if they fail to comply with the terms and conditions of the Sky Protocol.

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