XCM is Live on Polkadot, Bringing the DOT Token to the Moonbeam DeFi Ecosystem
Boston, MA – May 4, 2022 – Moonbeam, the top destination for multi-chain applications on Polkadot, has now added the DOT token for use within its DeFi ecosystem — the first XCM integration on Moonbeam. As an XC-20, xcDOT is now compatible with the ERC-20 standards in active use on Moonbeam, allowing existing DOT holders to deposit their tokens on Moonbeam through the DApp and actively use them in things like decentralized exchanges, liquid staking protocols, and lending and borrowing applications for the first time. This update was made possible following the rollout of XCM on Polkadot, introducing cross-chain capabilities for the first time for all parachains.
In addition to the utility options available on the Relay Chain like staking, governance, and bonding for parachain crowdloans, DOT tokens holders can now benefit from the extensive DeFi options on Moonbeam. As Polkadot gradually rolled out functionality, DOT holders have had limited choice of how they can use and stake their tokens. The implementation of xcDOT will allow users to move their DOT quickly and simply, and use it on a growing number of DApps. xcDOT gives Polkadot supporters more ways to enjoy the EVM-based ecosystem that is flourishing on Moonbeam.
“Movement of tokens across chains is a basic necessity in today’s multi-chain world, but cross-chain bridges have been a major source of security vulnerabilities and hacks,” said Derek Yoo, Founder of Moonbeam. “Polkadot’s XCM technology uses a light client-based approach, which is the gold standard for secure cross chain interactions. Protocols and applications in the Moonbeam ecosystem will benefit greatly from access to DOT as the major asset in the ecosystem while maintaining the highest levels of security.”
Polkadot is designed to be the center of cross-chain Web3 activity, connecting parachains and the decentralized applications that live on top of them. These DApps and services allow innovators to build and thrive in a trustless and decentralized environment. Since there are no smart contracts on Polkadot — instead, all DApps exist on independent connected networks called parachains — this new XCM functionality effectively opens the doors for token movement and interconnectedness between the many emerging ecosystems.
The ability to move assets across chains without bridging gives token holders options to conveniently interact with a multitude of DApps and projects, offering greater security and convenience. The option to engage on any platform opens the door for new use cases for DOT tokens and all the parachains, including DeFi, marketplaces and more.
XC-20s are cross-chain ready assets on Moonbeam and Moonriver, including both Substrate-native assets like DOT and new assets created on each parachain. They are accessible from Moonbeam using precompiled smart contracts to take advantage of the features on both the EVM and Substrate, uniting these two technologies within the Dotsama ecosystem.
About the Moonbeam Network
Moonbeam, the top destination for multi-chain applications on Polkadot, makes it easy to build natively interoperable applications. This Ethereum compatibility allows developers to deploy existing Solidity smart contracts and DApp frontends to Moonbeam with minimal changes. Like Moonriver, its sister parachain on Kusama, Moonbeam is expected to accumulate developer and user activity from the 80+ projects building DApps and protocols on the network. As a parachain on the Polkadot network, Moonbeam benefits from the shared security of the Polkadot Relay Chain and integrations with other chains that are connected to Polkadot. Learn more: https://moonbeam.network/.