The Sky ecosystem’s tokens are now powered by Wormhole NTT (Native Token Transfers), the open and flexible token framework built for and trusted by systemically important assets for going multichain.
Maker is among the largest and most established lending protocols in the DeFi space. Its decentralized stablecoin DAI is the third-largest stablecoin in the market, following only Tether’s USDT and Circle’s USDC.
With its recent rebrand to Sky, Maker is entering a new phase and preparing to scale to the next level. This has given rise to SKY, the native governance token of the decentralized Sky ecosystem, and the upgraded version of Maker’s legacy governance token, MKR; and USDS, the stablecoin of the decentralized Sky Protocol that can be used in several ways, including to participate in the Sky Savings Rate and access Sky Token Rewards without giving up control.
Introducing the Sky Protocol
A few weeks ago, Maker rebranded to Sky. This rebrand comes with an expansion of the protocol, which holds over $5B in assets, to Solana, alongside introducing new versions of its stablecoin DAI and governance token MKR.
The USDS stablecoin and the SKY governance token will all leverage Wormhole’s NTT framework, making them natively multichain and available on both Ethereum and Solana, with more expansion to come.
What is NTT?
Wormhole NTT (Native Token Transfers) is a flexible and open framework for seamlessly transferring native tokens across blockchains while preserving their intrinsic properties. Built on Wormhole’s battle-tested interoperability infrastructure and secured by the Guardian Network, NTT tokens meet the highest standards of security.
The framework’s reliability is demonstrated by its widespread industry adoption, with NTT already powering natively multichain tokens for other leading protocols such as Lido’s wstETH, JitoSOL, ether.fi, Renzo, and Stakewise.
Why NTT?
By integrating with NTT, Sky can easily take its flagship assets multichain on a framework that is designed to be flexible and support long-term protocol growth as it expands across chains.
Sky retains full control over its tokens' behavior on each chain, including aspects such as customizability, metadata management, contract ownership, as well as upgradeability. This ensures compatibility with any token standard or governance system, offering unparalleled flexibility and adaptability.
SKY, USDS, and sUSDS will be deployed on Solana in NTT’s “burn and mint” mode. This mode will create a unified supply that is managed and maintained across all supported chains with no wrapped tokens. This eliminates liquidity fragmentation, allowing users to participate in the ecosystem on multiple chains.
Get Involved with Sky
Sky is coming to Solana, allowing users to benefit from its lightning-fast execution and low fees. To interact with Sky on Solana, users can transfer their USDS from Ethereum using supported bridges such as Portal.
By connecting their wallets on Sky.money, users can deposit their Solana-based USDS into the Sky protocol’s vaults, which function similarly to the system users are familiar with from the Maker protocol.
For deposits in the Sky Savings Rate (SSR) module, users will receive sUSDS, another NTT-based multichain token. These sUSDS tokens serve as a digital record of your USDS interaction with the SSR module and any value accrued to your position. As those tokens auto-accumulate in the pool over time, the value of the sUSDS you hold may gradually increase.
Additionally, the platform allows users to swap ETH, SOL, USDC, and USDT for USDS and will provide SKY holders with access to the Sky Protocol’s decentralized governance system in the future.
As the implementation matures, NTT will also allow Sky to expand its governance system across chains, enabling broader governance participation. This will facilitate voting on chain-specific parameter changes that involve only the holders on the corresponding chain. This ensures the protocol can efficiently adapt to the dynamically evolving, ecosystem-specific challenges that might arise.
Learn More
Check out the Wormhole NTT Docs, or get in touch to go multichain and grow your token’s reach with an open and flexible standard trusted by the industry’s leading crypto assets.
Learn more about NTT in a 15-minute workshop given by Wormhole Foundation Product Lead, Nikhil Suri: Watch here.
About Sky Protocol
Sky Protocol, formerly known as the Maker Protocol, is a decentralized protocol with the Sky stablecoin USDS at its core. The protocol features Sky tokens (USDS, SKY, DAI, MKR), the Sky Savings Rate (SSR), Sky Token Rewards (STRs), and more. It is managed by Sky’s decentralized community governance.
About Wormhole
Wormhole is the leading interoperability platform that powers multichain applications and bridges at scale. Wormhole provides developers access to liquidity and users on over 30 of the leading blockchain networks, enabling use cases that span DeFi, NFTs, governance, and more.
The wider Wormhole network is trusted and used by teams like Circle and Uniswap. To date, the platform has facilitated the transfer of over 40 billion dollars through over 1 billion cross-chain messages. To learn more about Wormhole, follow on Twitter, join the Discord, or read the blog.