Wave 8: Hyperdrive Deploys Savings USDS as a New Yield Source
Hyperdrive has deployed Savings USDS, the tokenized version of USDS deposited into Sky Savings Rate, and it’s now available for users.
Last week, lots of eyes were on our deployment to Base, and now we’ve got even more news to share. Today, we’re excited to announce that the Hyperdrive Protocol (developed by DELV; this instance operated and managed by the Element DAO) has deployed Savings USDS, the tokenized version of USDS deposited into Sky Savings Rate, and it’s now available for users.
“We’re thrilled to be launching this sUSDS market and delivering even more yield opportunities for the Hyperdrive community,” said Charles St. Louis, CEO of DELV. “Now that MakerDAO has officially become Sky, we’re looking forward to contributing to the ecosystem and seeing other bold new ideas and innovations come out from Sky and Endgame.”
What is Sky Protocol?
Sky Protocol (formerly known as the Maker Protocol) is a DeFi liquidity protocol developed around the USDS stablecoin and managed by Sky ecosystem governance. The Sky Protocol features Sky tokens (USDS, SKY, DAI, MKR), the Sky Savings Rate, and Sky Token Rewards.
Users can directly trade tokens for Sky ecosystem tokens using permissionless, non-custodial pools, and they can deposit USDS into the Sky Savings Rate (SSR) module to grow their USDS savings.
What is Savings USDS?
Savings USDS (sUSDS) is the tokenized version of USDS that is deposited in the Sky Savings Rate (SSR). USDS is designed to maintain a soft peg to the U.S. dollar and it’s governed by a community of Sky governance token holders who participate in decentralized onchain voting.
The sUSDS token allows users to receive returns on their SSR deposits while still being able to transfer, stake, and lend the asset. Each sUSDS token is fungible and can be redeemed for USDS, and deposited USDS is never locked so it can be withdrawn at any time.
With Hyperdrive’s integration, USDS holders can access the Sky Savings Rate (SSR). That means Hyperdrive users will have an initial fixed APR of 6.25% for sUSDS.
How to Get Started with Savings USDS on a Hyperdrive pool
If you want to provide liquidity, here’s how it works:
- Acquire sUSDS through Sky.money by depositing USDS (or other stablecoins) into the Sky Savings Rate.
- Access the Hyperdrive app.
- Deposit sUSDS on Hyperdrive by navigating to the LP tab.
- Participate in Hyperdrive’s optimized liquidity pools. You’ll gain access to returns from staking and trading fees.
And if you’re a trader, here’s what you can do:
- Acquire sUSDS through Sky.money by depositing USDS (or other stablecoins) into the Sky Savings Rate.
- Access the Hyperdrive app.
- Deposit sUSDS on Hyperdrive.
- Open a long position at a fixed rate or a short position at a variable rate.
We’ll have many more YieldFest integrations and deployments to share in the coming weeks, so stay tuned to hear about the latest updates.
Missed our earlier posts? Check out Part 1, Part 2, Part 3, Part 4, Part 5, Part 6, and Part 7 to learn about our other integrations. Plus, take a look at YieldFest’s kickoff announcement for more details (including our role as a non-exclusive service provider to the Element DAO).
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Note: This blog post is general in nature and for informational purposes only. It is not legal, tax, investment, financial or other advice, nor is it a comprehensive or complete statement of the matters discussed. It is not a recommendation of an investment strategy and should not be used as the basis of any investment decision.
All transactions and investments involve risk, and past performance does not guarantee future results. Certain complex strategies carry additional risk and are not appropriate for all users. As with any DeFi or crypto position, you may incur losses. You alone are responsible for evaluating the benefits and risks associated with any decision to use Hyperdrive and the risks or concerns with any underlying yield source.
Hyperdrive is not currently available in certain jurisdictions, such as the USA and the UK.