Sky expands native tokens to Solana with Wormhole NTT

MakerDAO’s newly renamed decentralized finance protocol Sky will migrate its native tokens to Solana using Wormhole’s technology, thus increasing its multi-chain capabilities.

Wormhole (W)’s native token transfer framework, or NTT, enables seamless cross-blockchain transfers without changing the intrinsic properties of native tokens. Other protocols such as Lido, Jito, and ether.fi have also adopted NTT for multi-chain token transfers.

Native multi-chain token transfers

According to details in a blog post, Sky will use NTT to connect its governance token SKY and stablecoin USDS to the Solana (SOL) network. The move will make these tokens natively multi-chain on Solana and Ethereum (ETH) via bridges like Portal.

Tokens distributed across multiple chains using NTT go through the “burn and mint” mode of the framework.

“In this case, there will be no wrapped tokens for native tokens, but a unified supply across Sky and Solana. Users will be able to participate across multiple chains without suffering the impact of liquidity fragmentation,” Wormhole wrote.

The DeFi protocol will have full control over SKY, USDS, and sUSDS across functions such as token customizability, contract ownership, upgrades, and metadata management.

2 million SKY incentive program proposal

Sky co-founder Rune Christensen announced plans to transfer the protocol’s tokens to Solana on September 20. He announced the proposal at the Solana Breakpoint conference in Singapore.

Rune outlined an incentive program that would allocate 2 million SKY to decentralized finance protocols on Solana, along with a proposal to integrate the protocol’s tokens into the SOL platform.

Rune noted that the weekly allocation will go to projects that integrate SKY and USDS.