Sky's USDS stablecoin, launched to great success on Solana, has quickly gained traction, with its circulating supply surpassing $89 million within a day. This rapid growth positions USDS as the fastest-growing stablecoin on Solana, outpacing recently introduced options like PayPal's PYUSD. Sky, formerly MakerDAO, is incentivizing adoption by spending $2 million monthly to reward traders who switch to USDS. Lenders on platforms like Save, Drift, and Kamino pursue yields above 20% due to these incentives, making USDS competitive with existing popular stablecoins. The strategy of boosting initial adoption through financial incentives reflects a trend in the DeFi space, seen previously with PayPal's stablecoin. Experts suggest that while initial adoption looks promising due to incentives, the longevity of USDS's popularity may depend on ongoing financial support. As incentives diminish, users may revert to other stablecoins, showcasing the fickle nature of yield-chasing in decentralized finance.

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