Summary
TLDR: Wormhole introduces native token transfers to address liquidity fragmentation across different blockchains by allowing direct transfer of native tokens without the need for synthetic versions. This preserves token characteristics and ownership, providing a more efficient and flexible solution for cross-chain messaging.
Key Points
1. Cross-chain messaging platform Wormhole has introduced native token transfers (NTT) to address liquidity fragmentation and preserve token characteristics across different blockchains.
2. Unlike traditional token bridges that use the “lock and mint” or “burn and mint” approach, NTT allows for direct transfer of native tokens between different chains, avoiding the need for synthetic assets and multiple swaps.
3. Native token transfers offer projects ownership, upgradeability, and customizability over their tokens on various blockchains, reducing liquidity fragmentation and ensuring tokens maintain their unique characteristics across different chains.