The newly branded USDS, formerly known as DAI, is touted as the first major DeFi-native stablecoin on Solana. It introduces innovative lending, borrowing, and trading capabilities across Solana’s top DeFi platforms.

Sky’s Vision for Solana

Sky’s Nov. 19 announcement described the USDS launch as the initial phase of its broader strategy to bolster Solana’s DeFi liquidity and TVL. The team is also considering deploying SkyLink, a cross-chain bridge for USDS and its savings-focused counterpart, sUSDS, subject to governance approval.

To accelerate adoption, Sky is offering a massive $500,000 USDS reward pool for early users and liquidity providers:

• Kamino Finance: Weekly rewards of 200,000 USDS for USDC/USDS liquidity providers and 100,000 USDS for stablecoin suppliers.
• Drift Protocol: 100,000 USDS rewards for stablecoin suppliers.
• Save Finance: Monthly rewards totaling 400,000 USDS for users supplying USDS.

The protocol utilizes Wormhole’s Native Token Transfer (NTT) for seamless operations, enhancing cross-chain functionality.

The shift from Maker to Sky has not been without challenges. The rebranding caused some confusion, even prompting co-founder Rune Christensen to propose reverting to the original name. However, the idea was ultimately rejected. Additionally, the governance token transition from MKR to SKY has been slow, as SKY is yet to list on exchanges, impacting its adoption.

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With a market capitalization of $5.3 billion, USDS ranks as the third-largest stablecoin, behind Tether (USDT) and USD Coin (USDC), which dominate 88% of the market. Despite its promising potential, USDS faces stiff competition in an already crowded stablecoin arena.

While Solana’s explosive DeFi growth has been noteworthy, much of its popularity has been fueled by the speculative frenzy surrounding meme coins, thanks to platforms like Pump.fun that make token creation fast and inexpensive.

Sky’s bold move onto Solana demonstrates a commitment to advancing DeFi innovation. The success of USDS will hinge on its ability to differentiate itself in a competitive market while leveraging Solana’s scalability and speed.

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The Beginning of Rebirth of Solana

This rebirth began in 2023. 2023, a turnaround year for SOL, saw the price rise by 600% by the end of the year to $130. SOL token, which began to regain market confidence, became popular again among investors and users.

Independent Growth

The real exciting developments took place in 2024. This year began as a year full of technological innovations for Solana. In particular, the development of Runtime v2 and the integration of the Move programming language strengthened Solana’s position as a blockchain development platform. These developments helped Solana to become a faster, more efficient, and more reliable platform.

Technical analysis also shows that SOL’s price movement is in a stable upward trend. It is stated that the price is moving at important Fibonacci levels, especially the 69.59, 107.74, and 138.57 dollar levels. These analyses increase the interest of investors and analysts in Solana.

Solana’s transaction speed and low fee advantages will be further improved with the development of Firedancer. This new development will improve Solana’s scalability by increasing the network’s processing capacity.

Applications such as Phantom Wallet and Kamino Finance are contributing to the growth of the SOL ecosystem and are attracting attention in 2024 with potential airdrops. These applications help to expand Solana’s user base and further enrich the ecosystem.

The Summit Owner

SOL is solidifying its place as a major player in the blockchain space by overcoming the challenges it faced after the collapse of FTX. 2024 may be just the beginning of this recovery process. Solana’s future points to great potential in the blockchain space, and the innovations to be followed in this area will continue to shape the crypto world.

The post The Phoenix: Solana ‘s Story of Rebirth from the Ashes appeared first on Coin Engineer.

Kamino Finance is a decentralized finance protocol that operates on the Solana ecosystem, enabling debt issuance, borrowing, and trading.

Kamino Finance incorporates a host of financial applications, including debt issuance, borrowing, liquidity provision, beta-phase multiply, and leveraged transactions.

Borrowing: By providing liquidity on the platform (which is used as collateral), users can borrow in accordance with the dollar equivalent at that time. This loan is repaid at an annual interest rate.

Lending: By providing liquidity on the platform, users can earn interest returns at the annual percentage rate offered.

Multiply (Beta): Users set a multiplier on the platform and invest sol or liquid-staked assets. They are then provided a loan through JitoSol and earn APY returns at your multiplier rate. The application also includes various tools, such as a risk simulator.

K-Lend:

Kamino lends or K-lend is a dApp that combines the advanced liquidity provider features of high-infrastructure liquidity lending platforms like Aave, Curve, and Uni. It forms the basis of Kamino 2.0.

K-lend aims to combine various features such as an advanced risk management mechanism (benefiting from Oracle), eMode technology used in Aave v3 (customized leverage mechanism), a single pool liquidity system, and protected collateral in the K-lend dApp.

Airdrop and Token Allocation

As of the writing of this article, Kamino has a TVL of 135 million dollars and is the fifth largest in the Solana network. Kamino, which came to the agenda with an airdrop and stirred up the Solana ecosystem with its partnership with Jito and having no circulating tokens, has brought up airdrop questions.

On November 28th, Kamino announced a scoring system on their Medium page and will soon disclose the details and requirements of this system. Assuming that this scoring will be like other lending platforms (Marginfi and JTO);

1. Staking SOL or another supported asset on the platform
2. The amount of time and stake amount on the platform
3. Borrowing and lending
4. Generating TX at different times
5. Referral points

These conditions can be set, and after these conditions, your rank is determined, and if there will be an airdrop, the amount of token that will be given to you can be given under these conditions.

It is hard to predict this amount at this stage but JTO distributed 10% of the supply. Generally, projects distribute 5% to 10% of supply through airdrops. Presuming a token market cap of approximately 350M dollars, we could consider a 35M dollar airdrop.

Kamino Finance Team

While there isn’t sufficient information about the team, we can see that there are 13 employees on LinkedIn and only four profiles are open. Although the team is not often on camera, they are active on Discord and have made various posts regarding the project.

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