The Sky protocol announced the native deployment of its USDS stablecoin and its yield-bearing version, sUSDS, on the Avalanche network. The integration, which took place this past April 13, utilizes Skylink infrastructure and the LayerZero interoperability protocol. According to Sky governance, the operation was initiated through Grove Finance, allowing direct transfers from the Ethereum mainnet under a “burn-and-mint” model that eliminates dependency on third-party bridges.
This is a significant advancement in Sky’s multichain strategy, as Skylink enables expansion without the need for fragmented liquidity in bridges. Currently, the bridge operates with a daily limit of $5 million, a figure that will be expanded to its full capacity on April 27. With Avalanche ranking 12th in TVL within the DeFi sector, the arrival of USDS seeks to capture market share in an ecosystem that recently received the Bitwise Avalanche ETF, consolidating the network’s institutional relevance.
The native integration of USDS strengthens Avalanche’s liquidity and reduces security risks associated with external bridges. The next key step will be the launch of direct conversions between USDS and sUSDS within the Avalanche network, scheduled for the end of the second quarter of 2026.
Source: https://x.com/SkyEcosystem/status/2044762897901895990
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