Sky and Spark have moved $150M in USDS liquidity to Uniswap v4, launching a new Stablecoin FX Layer. The new layer is designed to create shared liquidity infrastructure for the next generation of stablecoins.
The battle for stablecoin liquidity in DeFi is entering a new phase, and Uniswap appears to be winning.
According to crypto researcher CM, Sky has officially shifted its stablecoin strategy away from Curve and toward Uniswap v4. Around $150 million worth of liquidity tied to USDS has already migrated to Uniswap, while liquidity pools involving USDS, PYUSD, and USDT have been withdrawn from Curve LPs.
The move signals that Sky now views Uniswap as the foundation for its long-term stablecoin infrastructure.
Spark, together with Sky and Uniswap, has unveiled what it calls the Stablecoin FX Layer.
The idea is that, instead of every stablecoin issuer building an isolated liquidity pool from scratch, multiple issuers can share a common liquidity network.
The first deployment brings roughly $150 million of liquidity to Uniswap v4 across the new USDS/PYUSD and USDS/USDT pools.
Spark says the stablecoin industry is rapidly expanding. Major companies and institutions such as PayPal (PYUSD), Ripple (RLUSD), Visa, Mastercard, Stripe, Robinhood, Revolut, Deel, and several major European and Japanese banks are all building stablecoin products or related infrastructure.
With potentially hundreds of stablecoins expected in the future, the industry now faces a new challenge: coordinating liquidity efficiently.
In the meantime, Spark argues that this model does not scale.
As more banks, fintech firms, exchanges, and payment companies launch stablecoins, liquidity becomes fragmented across multiple venues, making trading more expensive and less efficient.
Stablecoins have already become a major part of global finance. According to Chainalysis, stablecoins processed more than $28 trillion in transaction volume during 2025.
Meanwhile, Bloomberg Intelligence projects annual stablecoin payment flows could reach $56.6 trillion by 2030, while J.P. Morgan expects global cross-border payments to exceed $320 trillion by 2032.
A major reason behind Sky’s decision is Uniswap v4’s new hooks feature. Traditionally, liquidity in DeFi sits idle inside pools waiting for trades. Uniswap v4 changes this by making liquidity programmable.
Under the new model, liquidity backing USDS will no longer remain idle. Instead, capital can remain productive by earning yield on Spark through its broader Spark Liquidity Layer (SLL).
When trades occur, liquidity is automatically deployed into pre-defined trading ranges on Uniswap. Once the trade is completed, unused funds are instantly returned to Spark in the same block, along with any trading fees earned.
This needs to improve capital efficiency while reducing trading costs and slippage.
However, the long-term plan is beyond a few liquidity pools.
Sky plans to use USDS as the main intermediary asset connecting multiple stablecoins together. Instead of hundreds of isolated pools, future stablecoins could simply connect through USDS, creating one large shared liquidity network.
The more stablecoins integrated into the system, the stronger the network effects become.
For stablecoin issuers, this means they can focus on users and products rather than spending years bootstrapping liquidity.
For Uniswap, it positions the protocol as the core trading infrastructure for the next generation of digital finance.
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