This integration with Lido brings full DeFi capabilities to Polkadot's ecosystem through leading parachain Moonbeam.
BOSTON, May 31, 2022 /PRNewswire-PRWeb/ — Moonbeam, the top destination for multi-chain applications on Polkadot, announces the integration of Lido to fully unlock DeFi for the Polkadot ecosystem. Lido is the largest liquid staking derivatives protocol representing over 80% of market share.
The Lido integration enables DOT holders to stake their assets in the form of xcDOT while maintaining access to the liquidity of that staked position. Lido users who stake their xcDOT will receive a staked DOT (stDOT) token in return, allowing for more diverse DeFi scenarios across the Polkadot ecosystem.
xcDOT (cross-chain DOT) and stDOT (staked DOT) are XC-20 tokens, which act as ERC-20 assets that also include native cross-chain capabilities. They can be used not only in applications on Moonbeam, but across all applications on parachains connected to Polkadot. Unlike DOT, xcDOT can be held in a MetaMask wallet using new or existing Ethereum addresses.
“When Lido started looking at bringing their liquid staking protocol to Polkadot, an immediate problem presented itself — there are no smart contracts capabilities on the Polkadot Relay Chain where DOT lives,” said Derek Yoo, Founder of Moonbeam. “Moonbeam's native cross-chain integration features offered a solution where Lido could leverage their existing expertise with Solidity smart contracts, but securely extend those contracts to be cross-chain using Polkadot's XCM technology. The Lido deployment on Moonbeam is an excellent example of a native multi-chain application that leverages specialized functionality from multiple chains to deliver a single user experience. This approach is both more efficient and provides a better UX than existing approaches.”
The Lido integration follows on the launch of Cross-Consensus Messaging (XCM), which allows full communication between Polkadot parachains. Other chains are forced to rely on third-party bridges to move tokens between chains, whereas XCM allows parachains in the Polkadot ecosystem to exchange tokens and messages with the same security as the underlying network. Learn more about XCM on the Moonbeam documentation website.
For media inquiries, please contact Jonathan Duran at (310) 260-7901 or Jonathan(at)MelrosePR(dot)com.
Moonbeam is a fully Ethereum-compatible smart contract platform on Polkadot that prioritizes secure cross-chain interoperability. As a leading Web3 development platform, Moonbeam offers rich integration and decentralized solutions that allow developers to build native multi-chain DApps and port their existing smart contracts across chains with ease. Moonbeam natively supports existing ERC-20 assets to help extend a project's reach into a multi-chain ecosystem.
Jonathan Duran, Melrose PR, (310) 260-7901, Jonathan@melrosepr.com