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The Sky protocol has announced the native deployment of its USDS stablecoin and its yield-bearing version, sUSDS, on the Avalanche network. The integration was completed on April 13 and uses Skylink infrastructure alongside the LayerZero interoperability protocol.
Sky governance said the operation was initiated through Grove Finance, enabling direct transfers from the Ethereum mainnet under a burn-and-mint model. The approach is designed to remove reliance on third-party bridges.
"USDS and sUSDS are now natively available on Avalanche. @grovedotfinance has just pioneered direct transfers from @ethereum Mainnet to @avax via Skylink, Sky Ecosystem's crosschain bridge infrastructure."
Sky said the deployment leverages Skylink to expand cross-chain availability without requiring fragmented liquidity across separate bridge routes. The burn-and-mint mechanism is intended to facilitate direct transfers between Ethereum and Avalanche while reducing dependency on external bridging services.
Sky’s cross-chain bridge currently operates with a daily limit of $5 million. The protocol said this limit will be expanded to the bridge’s full capacity on April 27.
Sky also indicated that the next major step will be the launch of direct conversions between USDS and sUSDS within Avalanche. That feature is scheduled for the end of the second quarter of 2026.
Sky framed the move as a step forward in its multichain strategy, noting that Skylink can support expansion without fragmented bridge liquidity. The protocol also cited Avalanche’s position in DeFi, stating that Avalanche ranks 12th in TVL within the sector.
Sky said the arrival of USDS is aimed at capturing market share in an ecosystem that recently received the Bitwise Avalanche ETF, which it described as reinforcing Avalanche’s institutional relevance.
According to Sky, native integration of USDS on Avalanche is expected to strengthen local liquidity and reduce security risks associated with external bridges. The protocol’s stated next step—direct USDS-to-sUSDS conversions—would further deepen use of the stablecoin and its yield-bearing counterpart within the Avalanche network.
