Sky is enhancing its multichain capabilities by utilizing Wormhole’s Native Token Transfer (NTT) framework.
The native token transfer (NTT) system developed by Wormhole facilitates smooth cross-blockchain transfers of native tokens without modifying their inherent characteristics.
NTT has also been adopted by other protocols such as Lido, Jito, and ether.fi for multichain token transfers.
Sky will employ NTT to connect its stablecoin USDS and governance token SKY to the Solana network, per information provided in a blog post.
As a result of this change, these coins will be natively multichain and accessible via bridges like Portal on both Solana and Ethereum. Multichain tokens deployed via NTT pass through the “burn and mint” phase of the framework.
In this instance, the native tokens will have a single supply across Sky and Solana rather than wrapped tokens.
Wormhole stated that users won’t experience adverse effects of liquidity fragmentation when engaging in several chains.
SKY, USDS, and sUSDS will all be fully under the control of the DeFi protocol in terms of features like metadata management, contract ownership, upgrades, and customizable tokens.
Proposal for a 2 million SKY Incentive Program
Earlier on September 20, Rune Christensen, a co-founder of Sky, described the protocol’s intentions to bridge its tokens onto Solana. At the Solana Breakpoint conference in Singapore, he made the plan public.
Rune presented an incentive program that would donate 2 million SKY to decentralized finance protocols on Solana in addition to the plan to integrate the protocol’s tokens on the SOL platform.
According to Rune, the weekly allotment will be used for initiatives that combine SKY and USDS.
