Sky Extends Native Tokens onto Solana with Wormhole NTT
Sky – a DeFi protocol formerly known as MakerDAO – has just announced its integration with the Solana network via the Wormhole’s Native Token Transfer, or NTT, technology. The integration promises to continue scaling multi-chain functionality for the protocol and creating frictionless token swapping between blockchain ecosystems.
Natively Multichain Token Transfers
Integration with Wormhole’s NTT framework will allow native transfers between Ethereum and Solana for Sky’s governance token, SKY, and its stablecoin, USDS. In contrast to other typical wrapped tokens, the inner working mechanism of the NTT deploys a “burn and mint” model that maintains the total supply as one unified across chains. The idea is to avoid the liquidity fragmentation issues that usually come with multichain protocols.
The Wormhole NTT framework provides a constructor that retains the intrinsic properties of native tokens while introducing cross-chain compatibility. This technology has already been widely adopted by other major protocols, including Lido, Jito, and ether.fi, which further attests to the fact that it works well in enhancing multichain operations.
Full Control Over Tokens on Multiple Chains
The NTT framework will provide Sky with complete control over its tokens, including but not limited to customization, ownership, upgradation, and metadata management of NFTs. All this provides consistency and security within a host of blockchain environments.
This expansion onto Solana will provide users with even easier access to Sky’s native tokens, allowing participation in decentralized finance activities across Ethereum and Solana without the drawbacks of fragmented liquidity.
2 Million SKY Incentive Program Proposal
During the Solana Breakpoint conference held in Singapore, the co-founder of Sky, Rune Christensen, announced his intention to bridge both SKY and USDS tokens across the Solana network. He also made a pronouncement for an incentive program that would address 2 million SKY to all the dFinitives projects in Solana that integrate these tokens.
At the same time, this weekly distribution spreads the adoption and utility of SKY and USDS within the Solana ecosystem, promoting further growth and collaboration among DeFi protocols on the platform.
This move positions Sky for further growth and better establishes it as one of the leading multichain DeFi spaces. The integration of Wormhole’s NTT technology is another huge milestone toward achieving seamless cross-chain token transfers and will set the standard for the industry.
