As a seasoned analyst with years of experience in the cryptocurrency market, I find this move by Sky to be a strategic and forward-thinking decision. The integration of Wormhole’s NTT technology will undoubtedly enhance Sky’s multichain capabilities, allowing its native tokens to seamlessly transition between Ethereum and Solana networks.
The decentralized finance project formerly known as MakerDAO, now called Sky, intends to leverage Wormhole’s technology to move its native tokens onto the Solana blockchain. This integration aims to strengthen Sky’s cross-chain functionalities.
The native token transfer system (NTT) associated with Wormhole enables effortless movement of a token across various blockchains, maintaining its original characteristics intact. Similar solutions like Lido, Jito, and ether.fi are utilizing the NTT technology for multi-chain token transfers as well.
Natively multichain token transfers
Based on information in a blog article, Sky plans to employ NTT for connecting its governance token SKY and stablecoin USDS with the Solana (SOL) network. This action aims to make these tokens compatible across multiple chains, allowing them to be accessible not only on Solana but also on Ethereum (ETH) through bridges like Portal.
Tokens deployed multichain using NTT go through the framework’s “burn and mint” mode.
Here, there won’t be separate tokens for native tokens on both Sky and Solana; instead, there will be a single shared pool. This allows users to engage with various blockchains without encountering issues related to liquidity division, as stated by Wormhole.
The decentralized finance (DeFi) system will hold authority over the tokens SKY, USDS, and sUSDS in terms of customizing tokens, owning contracts, executing updates, and managing metadata for these tokens.
Proposal for a 2 million SKY incentive program
On September 20th, Rune Christensen, one of the co-creators of Sky, shared the team’s intentions to transfer their tokens onto the Solana network. This announcement was made during the Solana Breakpoint conference held in Singapore.
In addition to suggesting the integration of the protocol’s tokens onto the Solana platform, Rune also proposed a reward system that would distribute 2 million SKY tokens to decentralized finance (DeFi) projects on the Solana network.
The weekly allocation will go to projects that integrate SKY and USDS, Rune noted.
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2024-09-20 20:22