Sky, the decentralized finance protocol formerly known as MakerDAO, has announced the first native implementation of its native stablecoin, USDS, and its yield-bearing version, Savings USDS (sUSDS), on Avalanche.
The rollout runs on Skylink, the Sky ecosystem’s crosschain bridge protocol, built on the LayerZero infrastructure. Unlike traditional bridge implementations, Skylink operates on a burn-and-mint framework that requires no bridge liquidity, according to Sky’s X announcement.
Grove Finance initiated the bridge of Sky’s USDS and sUSDS to Avalanche via Skylink, becoming the first entity to transfer the assets directly from the Ethereum mainnet to Avalanche. “This is the first native implementation of USDS and sUSDS on Avalanche,” Sky highlighted about X, clarifying:
“Every previous stablecoin expansion to a new network required third-party bridges, but Skylink removes that dependency completely.”
Sky explained the phased rollout, writing that the Avalanche Bridge went live on April 13 with a daily transfer limit of 5 million in both directions set by Sky’s board. The limits will be increased to their final capacity on April 27, with native USDS-to-sUSDS conversions directly on Avalanche expected later in the second quarter of 2026, according to Sky’s X-thread.
Avalanche currently has just over $756 million in total value locked in DeFi, according to data from DefiLlama, making it the 12th largest chain according to DeFi TVL. Ethereum is the largest with over $58 billion.
In a separate collaboration between Grove and Sky, Grove announced yesterday that it had received $25 million from the Sky ecosystem as part of its Agent Network allocations. “Each allocation increases the Sky Agent Network’s ability to generate diversified revenues,” Sky wrote on X.
Sky is the updated version of MakerDAO, one of DeFi’s oldest and most influential protocols. As The Defiant reported in August 2024, the rebrand introduced USDS as the successor to DAI, the protocol’s long-running decentralized stablecoin, as part of the protocol’s major “Endgame” overhaul.
The Avalanche news adds to a busy week for the network. Yesterday, April 15, Bitwise launched its Avalanche ETF (BAVA) on NYSE Arca, offering investors regulated AVAX exposure with in-house staking.
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