Sky, the newly rebranded decentralized finance (DeFi) protocol formerly known as MakerDAO, is enhancing its multichain capabilities by utilizing Wormhole’s Native Token Transfer (NTT) framework.
Sky Expands to Solana Using Wormhole’s NTT, Source: Twitter
As per the blog post, this move will allow Sky’s governance token, SKY, and its stablecoin, USDS, to seamlessly transfer across blockchain networks, specifically bringing these assets to the Solana blockchain.
Wormhole’s Native Token Transfer (NTT) framework, or NTT, enables smooth cross-blockchain transfers of native tokens while preserving their inherent qualities. Other protocols, such as Lido, Jito, and ether.fi, have incorporated NTT for multichain token transfers.
Sky plans to use the “burn and mint” method to maintain a single supply of SKY and USDS on both Solana and Ethereum. This approach will help prevent liquidity issues and give Sky greater control and flexibility over how these tokens function across different blockchains.
Rune Christensen, co-founder of Sky, announced this development at the Solana Breakpoint conference in Singapore on September 20, where he also introduced a proposal for a 2 million SKY incentive program. This program encourages the integration of SKY and USDS within Solana-based DeFi projects.
Sky’s move to a multichain protocol is part of a larger growth strategy following its rebranding from MakerDAO. The launch of the SKY governance token and the USDS stablecoin marks a new chapter for the system, which still holds over $5 billion in assets. Integrating with Wormhole’s NTT architecture is a big step toward making Sky’s assets natively multichain, with further extension plans in the works.
Also Read: Wormhole to Bring World Coin’s ‘World ID’ to Solana
