KEY TAKEAWAYS
- Sky launches its USDS stablecoin on Solana using Wormhole’s NTT framework, enhancing cross-chain transfers between Ethereum and Solana.
- The integration with Solana marks a significant step in DeFi, leveraging Solana’s high speed and low transaction costs.
- Wormhole’s NTT framework provides secure, native multichain functionality, avoiding liquidity fragmentation and maintaining token control.
- Sky’s expansion to Solana is part of a broader strategy to strengthen its multichain presence and foster a more interconnected DeFi ecosystem.
USDS, the flagship stablecoin of Sky, formerly known as Maker, has been launched on the Solana blockchain using Wormhole’s Native Token Transfers (NTT) framework. This integration facilitates seamless native USDS transfers between the Ethereum and Solana blockchains, marking a significant milestone in decentralized finance (DeFi).
Sky, a pioneer in DeFi, has a history dating back to 2014 when it was originally launched as MakerDAO. The protocol achieved notable success with its DAI stablecoin, becoming the first DeFi protocol to achieve product-market fit. In 2024, it rebranded to Sky, focusing on resilience and simplicity while maintaining its non-custodial nature. With over $5 billion in assets, Sky’s ecosystem includes USDS, the third-largest stablecoin by market cap.
Wormhole’s NTT Framework
The Wormhole NTT framework offers a flexible and open solution for transferring native tokens across blockchains. Unlike traditional bridges that create wrapped assets, NTT enables native multichain functionality. Key features include seamless token transfers without wrapping, robust security via the Wormhole Guardian Network, and flexible token management options.
Sky’s choice to use the Wormhole NTT framework for its Solana expansion highlights the increasing demand for secure and efficient interoperability solutions. The integration allows for unified token supply management across Ethereum and Solana, eliminating liquidity fragmentation and maintaining control over token contracts and upgrades.
Why Solana?
Solana is recognized as one of the strongest ecosystems in the crypto space, leading with the highest 7-day decentralized exchange (DEX) volume, surpassing Ethereum by 77.91%. The network offers high speed and low transaction costs, making it an attractive destination for leading protocols and DeFi users. Sky’s deployment on Solana introduces the third-largest stablecoin to its rapidly growing DeFi ecosystem, reinforcing Solana’s position as a leading destination for on-chain finance.
The expansion to Solana is part of Sky’s broader strategy to leverage Solana’s capabilities, with plans for future deployments, including an SVM SkyChain integration. This move not only enhances Sky’s multichain presence but also sets the stage for a more interconnected DeFi future.
For more details, visit the official announcement here.
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