In response to the increasing demand for passive income, Sky Protocol, formerly Maker, continues to increase its supply of USDS. A portion of the heritage DAI supply, which is also actively utilized in decentralized lending and trading, is retained by the system. The USDS token’s 12.5% annualized yield is the main factor driving its increasing production. In return for the yield, 2.1 million USDS and DAI have been locked for staking.
USDS Stablecoin Hits Supply with DAI Swaps
Following faster swaps from DAI, the Sky Protocol stablecoin, USDS, hit a new supply peak above 1.8B. With a combined supply of more than 5.8 billion, both the new and historical stablecoins are utilized in both active and passive DeFi operations. As long as the DAI swap mechanism remains active, USDS will keep minting.
The USDS token’s 12.5% annualized yield is the main factor driving its increasing production. In return for the yield, 2.1 million USDS and DAI have been locked for staking. Sky Protocol By January 3, USDS had crossed 1.5 billion tokens, and the next supply milestone had arrived. The token grew rapidly on Ethereum in the first few days of the new year, hitting peak supply.
USDS Expands on Base with High Yields
By providing the initial liquidity providers on Aerodrome with an excessive yield, USDS also got ready for its development on Base. USDS will keep adding to Base, which now has over $3.5 billion in other stablecoins, in the upcoming weeks. Over the past three months, the total value locked on Solana has grown more quickly, reaching $8.54 billion. The TVL rose as a result of token and stablecoin inflows in addition to the higher nominal price.
Among the best DeFi apps for passive revenue are still Sky Protocol and Maker’s legacy vaults. A few of the collaborations are made possible by Spark Protocol, the largest subDAO, which has introduced its collection of Aave vaults. Sky Protocol will eventually seek to reclaim Maker’s place as one of the leading stablecoin issuers and passive revenue generators.
USDS Growth on Solana Driven by Whale Activity
Increased activity and turnover on Solana are likewise associated with the growth of USDS. The change occurred in November when the volumes on Ethereum were displaced by Sky’s calculated transition to the new chain. The USDS on Solana is very busy, which suggests that some of Ethereum’s older protocols are being adopted. Sky Protocol Solana activity has increased in recent months, possibly because of to demand for passive yield to lock in gains.
Early in 2025, the USDS supply increased once more in anticipation of a greater impact on Solana and Base. Dune Analytic is the source. The use of USDS on Solana is relatively restricted at this early stage. While USDS transactions on Ethereum can total over $30,000, the Solana version typically sees transactions of about $3,000 as the commodity continues to gain traction small number of whale wallets still hold a portion of the USDS on Solana.
Summary
With a 12.5% yearly yield propelling increased production, Sky Protocol defi is increasing its USDS supply in response to the growing demand for passive income. With the help of DAI swaps and staking, USDS hit a supply peak of more than 1.8 billion tokens. USDS is gaining traction on platforms like Base and Solana, where whale activity is contributing to its growth. The protocol is positioning itself to retake Maker’s place as a major stablecoin issuer and passive income producer, with continuous collaboration through Spark Protocol and other decentralized finance (DeFi) projects.
