A new release from Moonbeam, the Polkadot-based smart contract platform that is compatible with the Ethereum blockchain and built on Polkadot, reveals that it will be integrating with and working closely with Lido, one of the largest liquid staking derivatives protocols that is currently live on Ethereum and Terra.
As stated in the announcement, MixBytes, which was selected by the Lido DAO to handle the technological integration for the Polkadot ecosystem, would be the driving force behind the collaboration. As a result of this integration, liquid staking will be available on Moonriver and Moonbeam, and DOT holders will be able to stake their crypto-assets while still having access to the liquidity of their staked position.
In addition to providing a crucial building component for the rapidly developing DeFi ecosystem on Moonbeam, the introduction of Lido intends to provide a mechanism for digital token holders to properly utilize and exploit their Polkadot ecosystem assets.
Lido to Provide Staking Solutions to Solana and Terra
Lido, which is governed by the Lido DAO (distributed autonomous organization), has grown to become one of the most popular and widely utilized liquid staking systems in the world. Lido, which has its roots in Ethereum staking, is beginning to branch out to provide liquid staking solutions for a variety of other protocols, like Terra and Solana, as its foundation grows.
Lido chose Moonbeam to provide the parachain infrastructure and cross-chain connections for their ongoing expansion to Polkadot because its Ethereum-compatible smart contract functionality enables Lido to use Ethereum tools and source code to get to market much more quickly.
According to Misha Putyatin, CEO of MixBytes, following an investigation into various parachain partners and implementations, including the development of an independently-functioning parachain, the Moonbeam team and their „ambitions“ pleased them much.
With its EVM smart contracts, cross-chain integration functionality, and support for their protocol-level dependencies via their DeFi ecosystem, which includes stableswap AMMs, lending and borrowing, and other protocols that Lido requires, Moonbeam, Misha continued, meets their technical requirements.
Additionally, Lido provides a crucial feature for Moonbeam’s rapidly developing DeFi ecosystem, which is a critical capability for the company.
The potential to natively serve the Department of Transportation as an asset is a significant reason for project teams launching on Moonbeam.
By providing DOT holders with access to a liquid staking derivative that is enabled by the parachain, DOT holders are relieved of the need to choose between staking yield on the Relay Chain and DeFi yield holdings on Moonbeam.
Asset Volume on Moonbeam will be increased by the use of liquid staking derivatives
As a result of the introduction of liquid staking derivatives, it is envisaged that the number of assets routed into Moonbeam will expand significantly, resulting in increased TVL (total value locked) and significant prospects for transaction growth for DeFi solutions launched on Moonbeam.
According to Derek Yoo, the founder of Moonbeam, liquid staking derivatives may be considered a significant component in promoting the expansion of the DeFi ecosystem on Moonbeam and Polkadot.
He went on to say that they have been impressed by the Lido team’s technical expertise, vast subject knowledge, and the „commercial traction“ that their protocol has gained since first meeting them. Additionally, he stated that they look forward to collaborating with them in order to introduce stDOT and several other staking derivatives into the Polkadot ecosystem.
Currently, the technical teams from Lido and Moonbeam are collaborating to create an initial liquid staking implementation on Moonriver, which is the Kusama-powered sister network of Moonbeam. An example of how to leverage the Polkadot native cross-chain messaging protocol (XCMP), which may provide access to KSM and relay chain staking functionality from the Moonriver-powered EVM environment, should be provided by this integration.
Moonriver’s Lido is scheduled to open in the next months, according to the developer. After proving themselves on Moonriver, the XCMP-enabled integrations and Lido protocol may be deployed on Moonbeam in order to assist DOT.
Background on Moonbeam Network
On the Polkadot network, the Moonbeam smart contract platform was built, which is compatible with the Ethereum blockchain and allows software engineers to design natively interoperable applications.
Moonbeam’s compatibility with Ethereum makes it possible for programmers to port their current Solidity smart contracts and DApp frontends over to Moonbeam without having to make significant changes to their software. The Moonbeam blockchain should be able to benefit from the shared security of the Polkadot relay chain, as well as integrations with different other blockchains that are hooked up with Polkadot as a result of its status as a parachain on the network. Moonbeam, which is now under active development by PureStake, is expected to be released on the MainNet by the third quarter of 2021.
Background on Lido
Lido is a distributed autonomous organization, sometimes known as a DAO, that develops and maintains decentralized liquid staking protocols on the Ethereum blockchain. Lido presently ranks #8 in terms of DeFi by TVL ($5 billion), or 86 percent market dominance on Ethereum, indicating that it is among the industry’s top performers in the liquid staking field.
A group of software engineers, auditors, and professional analysts with extensive experience in decentralized systems and blockchain (also known as distributed ledger technology) have formed MixBytes (DLT). They develop and deploy a variety of solutions that are based on well-established blockchains and frameworks, including: EthereumPolkadotEOS.
They concentrate on the development of runtime modules and smart contracts, as well as consensus techniques and network administration. Also well-known as a prominent smart contracts auditing firm with a solid reputation, they have customers such as Aave, Yearn financing, Curve, 1inch and Lido among others who have placed their trust in their services and products.
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