The initial batch of parachain slot leases on Polkadot will end in October 2023, releasing previously-locked DOT tokens to their owners. This occasion provides original contributors with newfound flexibility in their token utilization, and there is a lot to do with them!
The Polkadot community has been building since the original parachain slot auctions ended, adding many applications for Defi and more. XCMGo to page https://moonbeam.network/blog/xcm-on-polkadot/#:~:text=XCM%20defines%20how%20messages%20are,on%20Polkadot%20and%20Kusama%2C%20respectively. innovation has integrated a number of parachainsGo to page https://moonbeam.network/education/what-is-a-parachain/ to interoperate, and moving tokens has never been easier. This means DOT holders have many new ways to use their dot across the ecosystem, including on Moonbeam applications.
Don’t forget, It’s crucial for individuals to conduct their own research and assess potential risks when engaging with the DApps mentioned in this post.
DOT on Moonbeam
PolkadotGo to page https://polkadot.network/ does not natively support the smart contracts required for applications to use the DOT token beyond network fees, native staking, crowdloans, and governance because it is designed primarily as a metaprotocol focused on securing and connecting the parachainsGo to page https://moonbeam.network/education/what-is-a-parachain/. Parachains like Moonbeam support the DeFi applications that give token holders flexibility to use their DOT tokens in new ways. One way this cross-chain token use is made possible is with Polkadot’s cross-consensus messaging (XCM) functionality.
Moonbeam introduced the DOT token into its DeFi ecosystem through an XCM integrationGo to page https://moonbeam.network/announcements/moonbeam-adds-xcdot/ in 2022. Now operating as an XC-20Go to page https://moonbeam.network/blog/introducing-xc-20s/, the xcDOT token aligns with the ERC-20 standards active on Moonbeam. This compatibility makes the DOT token available for use in all types of applications, including DeFi.
XC-20sGo to page https://moonbeam.network/blog/introducing-xc-20s/ represent cross-chain-ready assets available on Moonbeam and Moonriver comprised of Substrate-native assets like DOT and new assets originating from each parachain. These assets leverage precompiled smart contracts to harness the features of both the EVM and Substrate, effectively uniting these technologies within the Dotsama ecosystem.
In addition to the traditional utility options available on the Polkadot Relay ChainGo to page https://wiki.polkadot.network/docs/learn-architecture, such as staking, governance, and bonding for parachain crowdloans, this integration enables existing DOT holders to seamlessly deposit their tokens on Moonbeam via the DAppGo to page https://apps.moonbeam.network/moonbeam and actively engage in various activities like decentralized exchanges, liquid staking protocols, lending, and borrowing applications, marking the inaugural cross-chain capabilities rollout for all parachains with the advent of XCM on Polkadot.
Where Can You Use Your Dot?
The following DApps currently support xcDOT on Moonbeam:
DEXes
BeamswapGo to page https://app.beamswap.io/exchange/braindex, is a Moonbeam-based DeFi hub providing liquidity for peer-to-peer transactions powered by standard, stable, & CL AMM. Beamswap is the only active perpetual exchange on Polkadot. On Beamswap holders can supply DOT tokens in combination with other cryptos as liquidity. Refer to Beamswap on XGo to page https://twitter.com/Beamswapio for more information.
StellaswapGo to page https://app.stellaswap.com/exchange/swap is a decentralized exchange on Moonbeam with built-in bridging and user-focused liquidity services offering a range of DeFi options including DOT liquidity providing. Check out Stellaswap’s XGo to page https://twitter.com/StellaSwap for news and updates.
GammaGo to page https://gamma.xyz/ manages xcDOT liquidity pools. Refer to Gamma on XGo to page https://twitter.com/GammaStrategies for details.
Liquid Staking
BifrostGo to page https://bifrost.app/ is a Polkadot parachain that offers a liquid staking solution for xcDOT, and vDOT, the chains own derivative. You can transfer your DOT to Bifrost and stake it for vDOT, a yield-bearing DOT Derivative. Going even further, you can transfer your vDOT to Moonbeam where it can be put to work with DeFi protocols like StellaSwap. For more information about vDOT, check out Bifrost’s Medium Post on vDOTGo to page https://medium.com/bifrost-finance/vdot-is-coming-soon-a-preview-of-its-core-benefits-f63b5e6f0791. Refer to Bifrost on XGo to page https://twitter.com/i/flow/login?redirect_after_login=%2FBifrostFinance for news and updates.
Lending/Borrowing
MoonwellGo to page https://moonwell.fi/discover is the largest lending, borrowing protocol (by TVL) on Moonbeam and Moonriver. Moonwell offers an intuitive platform for managing digital assets. The application supports DOT in lending and borrowing. Refer to Moonwell on XGo to page https://twitter.com/MoonwellDeFi for news and updates.
Prime ProtocolGo to page https://app.primeprotocol.xyz/ is the first natively cross-chain prime brokerage that facilitates users in borrowing across blockchain networks while utilizing their complete cross-chain asset portfolio, promoting liquidity and versatility in decentralized finance. Prime offers DOT deposits on Moonbeam for cross-chain lending and borrowing. Find out more on Prime’s X.Go to page https://twitter.com/prime_protocol
What are Polkadot Parachain Slot Auctions and Crowdloans?
The crowdloanGo to page https://moonbeam.network/education/what-is-a-crowdloan/ is an innovative funding mechanism crucial for projects within the Polkadot and Kusama ecosystems to secure the necessary tokens for acquiring a network slot. In this process, token holders contribute their tokens to support their preferred project’s bid for one of the auctioned slots.Go to page https://moonbeam.network/education/how-parachain-slot-auctions-work/
When a project successfully secures a slot, the tokens contributed are locked for the lease period and later returned to the contributors upon its conclusion. Crowdloans are inherently reliant on active community engagement and support, playing a pivotal role in determining the victor in the competitive parachain slot auctions.
Moonbeam Crowdloan
The Moonbeam Network crowdloanGo to page https://moonbeam.foundation/news/allocation-rewards-details-moonbeam-crowdloan/ was the biggest in history with over 1 billion USD in DOT contributions (at the time of the crowdloan). Moonbeam continues to be the most active parachain. The Network began its 3-phase launch process to Polkadot on December 17, 2021, receiving 35,759,931 Total in DOT contributions. These tokens will now be returned to the more than 200,000 participants who supplied them through the Moonbeam Foundation DApp, BinanceGo to page https://www.binance.com/, KrakenGo to page https://www.kraken.com/, and other exchanges and parachains that supported the crowdloan.
Since its initial parachain slot win, Moonbeam secured the 44th slot as a renewal to ensure uninterrupted operation for Moonbeam throughout a full lease period, extending into June 2025. This subsequent slot was self-funded, so there was no need for additional crowdloansGo to page https://moonbeam.network/education/what-is-a-crowdloan/.
If you participated in the Moonbeam Crowdloan via the Moonbeam dAppGo to page https://apps.moonbeam.network/moonbeam/crowdloan-rewards, your GLMR crowdloan rewards have been unlocked linearly over the 48 week parachain lease – and you likely still have more GLMR to claim. See this guide for claiming your GLMR crowdloan rewards.Go to page https://moonbeam.foundation/tutorials/claim-moonbeam-crowdloan-rewards/ If you participated in the crowdloan via an exchange, the exchange will have more information about claiming your GLMR crowdloan rewards and receiving your unlocked DOT.
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