Sky, a decentralized finance protocol rebranded from MakerDAO, is about to make the most of Wormhole’s know-how to carry its native tokens to Solana, enhancing its multichain capabilities.
Wormhole (W)’s native token switch framework, or NTT, permits for seamless cross-blockchain transfers of native tokens with out altering their intrinsic properties. Different protocols like Lido, Jito, and ether.fi have additionally adopted NTT for multichain token transfers.
You may additionally like: MakerDAO rebrands to Sky, introduces SKY and USDS tokens
Natively multichain token transfers
In keeping with particulars in a weblog submit, 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, out there on Solana and Ethereum (ETH) through bridges similar to Portal.
Tokens deployed multichain utilizing NTT undergo the framework’s “burn and mint” mode.
On this case, there can be no wrapped tokens for the native tokens, however a unified provide throughout Sky and Solana. Customers will be capable of take part on a number of chains with out struggling the influence of liquidity fragmentation, Wormhole wrote.
The DeFi protocol can have full management over SKY, USDS, and sUSDS throughout features similar to token customizability, contract possession, upgrades, and metadata administration.
Proposal for a 2 million SKY incentive program
Rune Christensen, co-founder of Sky, highlighted the protocol’s plans to bridge its tokens onto Solana earlier on Sept. 20. He revealed the proposal on the Solana Breakpoint convention in Singapore.
Alongside the proposal to combine the protocol’s tokens on the SOL platform, Rune outlined an incentive program that will allocate 2 million SKY to decentralized finance protocols on Solana.
The weekly allocation will go to tasks that combine SKY and USDS, Rune famous.
Learn extra: BlackRock-backed Securitize integrates Wormhole for cross-chain tokenization
