Sky, the decentralized finance protocol rebranded from MakerDAO, is set to leverage Wormhole’s technology to introduce its native tokens on Solana, enhancing its multichain capabilities.
Wormhole’s native token transfer framework, known as NTT, enables seamless cross-blockchain transfers of native tokens without changing their intrinsic properties. Other protocols, including Lido, Jito, and ether.fi, have also adopted NTT for multichain token transfers.
Natively Multichain Token Transfers
According to a recent blog post, Sky will use NTT to bridge its governance token, SKY, and stablecoin, USDS, to the Solana network. This integration will make these tokens natively multichain, allowing them to be available on both Solana and Ethereum through bridges like Portal.
Tokens deployed through NTT utilize a “burn and mint” mechanism, ensuring that there are no wrapped tokens for the native assets. Instead, there will be a unified supply across Sky and Solana, enabling users to participate on multiple chains without facing liquidity fragmentation issues.
Sky will maintain full control over SKY, USDS, and sUSDS, managing aspects such as token customization, contract ownership, upgrades, and metadata.
Proposal for a 2 Million SKY Incentive Program
Rune Christensen, co-founder of Sky, shared the protocol’s plans to bridge its tokens onto Solana during the Solana Breakpoint conference in Singapore on September 20. He introduced a proposal to allocate 2 million SKY to decentralized finance protocols on Solana.
This weekly allocation will support projects that integrate SKY and USDS, according to Rune.