Sky’s Keel to Supercharge Solana DeFi with $2.5B Capital Engine

The Solana ecosystem is about to receive its biggest-ever stimulus check, with OG DeFi powerhouse Sky, formerly MakerDAO, announcing Keel, a $2.5B capital engine designed to grow the onchain economy.

Aiming to supercharge Solana DeFi, Keel is bringing $2.5B in fresh liquidity to amplify and stimulate organic and creative onchain wealth strategies across the network.

The announcement comes amidst calls for the Solana ecosystem to question its reliance on centralized stablecoins and consider how decentralized, ecosystem-aligned alternatives could expedite network growth.

New Capital Layer to Inject $2.5B into Solana DeFi

On September 30, Sky announced the launch of Keel, a new capital engine designed to stimulate the growth and expansion of Solana’s native DeFi economy. With $2.5B set aside to deploy across the ecosystem, Keel’s arrival represents one of the network’s biggest influxes of capital since launching over five years ago. 

Keel joins Sky’s other autonomous units, or ‘Stars’, like the Spark Liquidity Layer, an Ethereum equivalent with over $8B in TVL, and Grove, a similar initiative focused on collateralized loan obligations.

Powered by $USDS, Sky’s native decentralized stablecoin, Keel serves as an onchain capital allocator designed to enhance liquidity and catalyze growth throughout Solana DeFi. With $2.5B at its disposal, Keel will dynamically allocate capital across the onchain economy to generate yield, with stablecoin lending and liquidity provision, and TVL bootstrapping highlighted as key areas of focus.

"Keel was founded on the belief that the next phase of on-chain finance growth needs more than new assets alone; it needs liquidity that can be accessed at speed and scale. Keel is the first to provide these enablers on Solana, delivering the capital and catalyzing force for the next stage of growth in on-chain lending, borrowing, tokenization and more." - Cian Breathnach, CEO of Matariki Labs

Keel also envisions playing a greater role in Solana’s soaring RWA and tokenization sector. According to RWA.xyz, Solana’s total RWA Value, or market cap of RWAs, has enjoyed 291% YTD growth, rising from $173.8M to $680.7M. Keel’s documentation implies the capital engine is eager to allocate a portion of its reserves into tokenized yield-bearing assets and tokenized strategies.

Ecosystem leaders have welcomed Keel’s capital engine with open arms, arguing that its launch is a watershed moment towards establishing Solana as the centrepiece of internet capital markets and a globally distributed onchain economy. 

“Keel is enabling institutional-grade access to DeFi and real-world assets on Solana. As the only protocol centered on sustained revenues, the availability of this on-chain balance sheet from Keel will drive growth across TradFi and DeFi at a speed and scale that defines the network. This is a key step in cementing Solana’s position as the leading platform for internet capital markets.” - Lily Liu, President of the Solana Foundation

Sky co-founder Rune Christiensen further stipulated that Keel will become the network’s largest and most influential capital allocator, spearheading further innovation and growth across DeFi and RWA verticals.

“Keel combines the passion and expertise of a Solana-native team with the proven scale, experience, and infra of the Sky ecosystem, to bring the next wave of institutional capital to DeFi on Solana. Keel is set to become the largest onchain balance sheet and allocator in the Solana ecosystem, partnering with the best in Solana to play a leading role in shaping the DeFi and RWA landscape.” - Rune Christiensen, Sky co-founder

Sky’s latest Solana-based endeavor will also benefit from the network’s wealth of speculators. Keel’s commitment to decentralization runs deep, with protocol documentation hinting that Solana’s largest capital engine will also be powered by its own governance token, giving holders authority over Keel’s infrastructure, capital, and configurations.

Solana Needs a True Decentralized Stablecoin

Keel’s inception comes hot off the heels of ecosystem leaders advocating for a Solana-centric stablecoin. Inspired by conversation surrounding enshrined stablecoins on a rival network, Helius CEO Mert Mumtaz argued that the Solana ecosystem would benefit from mitigating its dependence on centralized stablecoins like $USDC.

While Sky’s $USDS doesn’t entirely fit the bill as a Solana-native stable, it does boast the largest supply among the network’s decentralized stablecoins. Circle’s $USDC and Tether’s $USDT have undoubtedly proven themselves reliable, but Solana’s reliance on these stablecoin titans is arguably counterproductive for the ecosystem as a whole.

Tether is making its intentions clear through its backing of new L1s like Plasma, and a portion of revenue from Circle’s $USDC is funneled to Coinbase. Circle reportedly paid over $907M to Coinbase in 2024, with a percentage of funds coming from Solana-based DeFi activity.

By continuing to use centralized stablecoins that fund its competitors, the Solana ecosystem is arguably shooting itself in the foot. 

Sky’s $USDS could offer a timely alternative, with Keel’s novel capital engine expected to boost $USDS adoption on the network and give Solana DeFi users greater volition and autonomy with regard to their stablecoin habits.

Stablecoins on Solana Hit All-Time High

Keel launches as stablecoin penetration on Solana hits new all-time highs. According to Dune Analytics, the total supply of stablecoins on the network now sits at $14.6B.

With Keel expected to inject $2.5B worth of fresh liquidity into Solana DeFi, this figure is expected to surge in the coming weeks, with $USDS steadily claiming greater market share and issuing a challenge to its centralized rivals.

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