Sky launches USDA on Solana through Wormhole NTT framework
Sky, formerly known as MakerDAO, has launched its decentralized stablecoin, USDS, on Solana using the Wormhole’s NTT framework.
USDS, the third largest stablecoin by market cap, is now live on Solana with the Wormhole interoperability protocol. Smooth native USDS transfers between the Ethereum and Solana blockchains are made possible by this landmark integration, according to a press release.
USDS is live on @Solana.
— Sky (@SkyEcosystem) November 19, 2024
As the first major DeFi-native stablecoin on Solana, USDS unlocks new opportunities for lending, borrowing and trading across the ecosystem's top DeFi platforms.
Additionally, early adopters can access over 500,000 USDS in weekly rewards. pic.twitter.com/K0gR5IKwgR
It was earlier reported by Sky's founder, Rune Christensen, on September 20 at the Solana Breakpoint conference that the firm plans to launch USDS on Solana.
Sky DeFi’s most established protocol
Sky became the first DeFi protocol to achieve product-market fit and saw tremendous success with its DAI stablecoin. The protocol evolved to Sky in 2024, bringing improved technology that was simpler and more resilient while keeping its non-custodial characteristics. Sky's ecosystem, which now has over $5 billion in assets, includes USDS, the third-largest stablecoin in the market, and an upgraded version of DAI.
Why is Sky expanding to Solana?
For DeFi, the move to Solana marks a major turning point. With the largest 7-day DEX volume in the market, Solana is the strongest ecosystem in cryptocurrency, outpacing Ethereum by 77.91% ($15.78B vs. $8.87B).
The protocol's decision to expand Solana using the Wormhole NTT framework highlights the increasing need for safe, efficient interoperability solutions.
With its unmatched speed and cheap transaction fees, the network routinely generates more fees per day than Ethereum, making it the preferred chain for both DeFi users and top protocols.
This deployment solidifies Solana's position as the top onchain finance destination by bringing one of the most well-known DAOs to the platform and adding the third-largest stablecoin in the market to its rapidly expanding DeFi ecosystem. The selection of Solana by the Sky ecosystem is a result of their appreciation of SVM's improved capabilities, and the expansion creates opportunities for future deployments, such as an integration with SVM SkyChain, the post added.
What is Wormhole’s NTT framework?
The open and flexible Wormhole Native Token Transfers (NTT) framework allows native tokens to be moved between blockchains with ease. With features like seamless token transfers without wrapping or bridging, battle-tested security through the Wormhole Guardian Network, an open-source architecture for widespread composability, and flexible token management and customization options, NTT enables native multichain functionality in comparison to traditional bridges that create wrapped assets.
Sky has used NTT's burn-and-mint deployment mode to transfer USDS multichain to Solana. With the highest levels of efficiency and security, Sky's NTT comprehensive implementation guarantees that users can interact with Sky's USDS across chains with convenience.
Wormhole NTT's deployment of Sky on Solana lays the groundwork for a future in which DeFi is truly multichain. In addition to combining the three DeFi powerhouses—Sky's liquidity, Solana's performance, and Wormhole's security—this action creates a model for an efficient, secure, multichain innovation.
Sky Protocol launches incentive program
The company added in the post that the Solana ecosystem is launching with a robust incentives program for a wide range of protocols. Through this initiative, early network effects for the full SkyLink deployment will be created by providing SKY tokens to DeFi integrators and liquidity providers on Solana. Users can use USDS throughout Solana's DeFi ecosystem or take part in these incentive programs after transferring to Solana via the Portal.
Disclaimer
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