Sky, a decentralized finance protocol rebranded from MakerDAO, will use Wormhole’s know-how to convey its personal tokens to Solana, enhancing its multichain capabilities.
The Wormhole (W) native token switch framework, or NTT, permits seamless cross-blockchain transfers of native tokens with out altering their intrinsic properties. Different protocols similar to Lido, Jito and ether.fi have additionally adopted NTT for multi-chain token transfers.
You may additionally like: MakerDAO adjustments title to Sky and introduces SKY and USDS tokens
Native multi-chain token transfers
Based on particulars in a weblog publish, Sky will use NTT to bridge its governance token SKY and stablecoin USDS to the Solana (SOL) community. This transfer will make these tokens natively multichain, obtainable on Solana and Ethereum (ETH) by way of bridges similar to Portal.
Tokens deployed multichain with NTT undergo the framework’s “burn and mint” mode.
On this case, there aren’t any packaged tokens for the unique tokens, however a unified providing for Sky and Solana. Customers will have the ability to take part in a number of chains with out struggling the results of liquidity fragmentation, Wormhole wrote.
The DeFi protocol may have full management over SKY, USDS and sUSDS for capabilities similar to token customization, contract possession, upgrades and metadata administration.
Proposal for a SKY incentive program of two million euros
Sky co-founder Rune Christensen beforehand highlighted the protocol’s plans to hyperlink the tokens to Solana on September 20. He unveiled the proposal on the Solana Breakpoint convention in Singapore.
Along with proposing to combine the protocol’s tokens onto the SOL platform, Rune outlined an incentive program that might allocate 2 million SKY to decentralized monetary protocols on Solana.
The weekly allocation will go to initiatives that combine SKY and USDS, Rune famous.
Learn extra: BlackRock-backed Securitize integrates Wormhole for cross-chain tokenization