Sky, the decentralized finance protocol rebranded from MakerDAO, is taking a significant step towards multichain expansion by bringing its native tokens to the Solana ecosystem. This move is made possible through Wormhole’s Native Token Transfer (NTT) framework, a technology that enables seamless cross-blockchain transfers without compromising the tokens’ intrinsic properties.
The integration will see Sky’s governance token SKY and stablecoin USDS become natively multichain, available on both Solana and Ethereum networks via bridges like Portal. This deployment utilizes NTT’s “burn and mint” mode, ensuring a unified token supply across chains and mitigating the effects of liquidity fragmentation. Importantly, Sky will retain full control over its tokens’ functionalities, including customizability, contract ownership, upgrades, and metadata management.
Rune Christensen, co-founder of Sky, unveiled this strategic move at the Solana Breakpoint conference in Singapore. Alongside the token integration proposal, Christensen announced plans for a substantial incentive program. The initiative aims to allocate 2 million SKY tokens to Solana-based decentralized finance protocols that integrate SKY and USDS, distributed on a weekly basis. This program is designed to foster adoption and create a robust ecosystem for Sky’s tokens within the Solana network.
Sky’s expansion to Solana through Wormhole’s NTT technology marks a significant development in the DeFi landscape. It not only enhances Sky’s multichain capabilities but also demonstrates the growing trend of cross-chain interoperability in the blockchain space. As more protocols adopt similar strategies, the boundaries between different blockchain ecosystems continue to blur, potentially leading to a more interconnected and efficient decentralized financial system.
