Sky, the decentralized finance (DeFi) system that used to be called MakerDAO, has said it wants to use Wormhole’s technology to add its own tokens to the Solana blockchain. This will make the decentralized finance (DeFi) system more useful across multiple chains.
Wormhole’s Native Token Transfer (NTT) framework will be used for the project. NTT makes it easy to send tokens between chains without changing their basic features. Lido, Jito, and ether.fi are some of the other systems that use similar frameworks.
A new blog post says that the decentralized finance (DeFi) system plans to connect its governance token, SKY, and its stablecoin, USDS, to the Solana network using NTT. This will allow these tokens to work natively on both Solana and Ethereum.
Sky’s Token Management Strategy
Tokens that are moved through NTT will go through a “burn and mint” process. This will make sure that there are no wrapped tokens and keep the quantity the same across all chains. Wormhole says this will let users deal with more than one blockchain without having their liquidity get fragmented.
the decentralized finance (DeFi) system will keep full control over how its SKY, USDS, and sUSDS tokens can be customized, who owns contracts, how they can be upgraded, and how their information is managed on both blockchains. Sky co-founder Rune Christensen talked about this plan at the Solana Breakpoint conference in Singapore on September 20.
As well as adding tokens, Rune also launched a 2 million SKY incentive program for Solana decentralized finance projects. The weekly allocation will help projects that use the the decentralized finance (DeFi) system and USDS coins and make them part of their ecosystems.
