Moonbeam Unlocks Billions in Wormhole Liquidity: Solving Fragmentation in the Polkadot Ecosystem

https://moonbeam.network/education/what-is-a-parachain/Users Can Now Bring Liquidity Through Moonbeam to the HydraDX Parachain

Singapore – August 17, 2023 – MoonbeamGo to page https://moonbeam.network/, the top destination for multi-chain applications on Polkadot, has introduced new functionality that allows the entire Polkadot ecosystem to easily access billions of dollars in liquidity via the WormholeGo to page https://wormhole.com/ protocol. Until today, there was no easy way for parachainsGo to page https://moonbeam.network/education/what-is-a-parachain/ on Polkadot to tap into external assets and users without undertaking independent integrations with bridge providers. Now, with the release of Moonbeam Routed LiquidityGo to page https://moonbeam.network/education/moonbeam-routed-liquidity/, users of HydraDXGo to page https://hydradx.io/ can bring in crypto liquidity from ecosystems like Ethereum, Solana, Polygon, or Avalanche — without needing to create a Moonbeam account or interact with Moonbeam directly. 

Polkadot has long been known for its “layer zeroGo to page https://moonbeam.network/education/why-polkadot-is-layer-zero/” approach, which allows it to serve as a base deployment layer upon which other “layer one” networks can live. This approach has many benefits, including shared security and native interoperability, but can cause fragmentation as new assets are introduced on each blockchain (known as a “parachain”). With Moonbeam Routed Liquidity, all parachainsGo to page https://moonbeam.network/education/what-is-a-parachain/ can now access bridge liquidity through a cross-chain (XCM) connection with Moonbeam.

Moonbeam Routed Liquidity (MRL) is a powerful way to bring liquidity to the Polkadot ecosystem. This one-click feature that can summon Wormhole and other bridge assets from anywhere in the Polkadot ecosystem is made possible by the general message passing (GMPGo to page https://moonbeam.network/blog/what-is-gmp/) precompile implemented in a recent runtime upgradeGo to page https://moonbeam.network/announcements/moonbeam-introduces-powerful-interoperability/, plus other interoperable capabilities already available on Moonbeam. It works the other way: many parachains can bring their native tokens to Ethereum-based exchanges for the first time since launch.

“The Moonbeam contributors have always been thought-leaders in the cross-chain space and have driven growth in apps and liquidity for the Polkadot ecosystem over the years,” said Robinson Burkey, EVP and Head of Strategy at Wormhole Foundation. “It’s exciting to see Wormhole now being integrated with Moonbeam Routed Liquidity to help further that growth by bringing seamless asset transfers from outside of Polkadot to any parachain while leveraging both Wormhole’s Guardian network and XCM for messaging.”

Moonbeam can route liquidity across the Polkadot network using a combination of GMP, Polkadot’s cross-consensus messaging (XCM)Go to page https://moonbeam.network/blog/xcm-on-polkadot/, and Moonbeam’s XC-20Go to page https://moonbeam.network/blog/introducing-xc-20s/ technologies. Routed liquidity fills the gap between parachains without EVM support and remote chains that lean on third-party bridges, providing new possibilities for decentralized finance on Polkadot at a much broader scale. 

“Moonbeam has always been committed to providing a superior user experience, and the introduction of routed liquidity is a capstone in that mission,” said Alberto Viera, Founder at PaperMoon, a developer relations contributor to Moonbeam. “Moonbeam Routed Liquidity drastically simplifies the complexities of moving data and assets from an external chain within Polkadot. This launch exemplifies how Moonbeam can serve the Polkadot ecosystem as a gateway to liquidity solutions through teams like Wormhole.”

HydraDX is the first parachainGo to page https://moonbeam.network/education/what-is-a-parachain/ on Polkadot to use Moonbeam Routed Liquidity, which gives their users the ability to move Wormhole-based tokens in and out of their ecosystem quickly using a simple interface provided by CarrierGo to page https://www.carrier.so/, a powerful token and NFT cross-chain bridge built for Web3 natives. This application makes moving liquidity from an external chain like Ethereum through Moonbeam to HydraDX as simple as if the blockchains were directly connected.

Moonbeam’s new GMP precompile enables developers on other Polkadot-based chains to connect smart contracts and transfer tokens, data, and payloads across different blockchains. GMP opens up new possibilities for decentralized finance (DeFi) and interoperability. Moreover, with Moonbeam Routed Liquidity, the GMPGo to page https://moonbeam.network/blog/what-is-gmp/ precompile can be used with Polkadot’s native secure messages (XCM), enabling developers to access Moonbeam’s EVM from their home chains and unlock new capabilities.

Moonbeam Routed Liquidity is powerful because any token can travel through Moonbeam — “outside” assets can come in via bridges like Wormhole and travel across Polkadot. Polkadot-native assets can access outside ecosystems like Ethereum. While Wormhole is the first provider to support MRL, other bridging providers can provide similar support through this precompile.

Developers who want to enable their users to access MRL from their parachain must connect to Moonbeam via XCM and facilitate remote transactions. To get started, you can contact the Moonbeam development teamsGo to page https://moonbeam.network/contact/.

About the Moonbeam Network

MoonbeamGo to page https://moonbeam.network/ is a smart contract platform for building cross-chain connected applications that can access users, assets, and services on any chain. By uniting functionality from Ethereum, Cosmos, Polkadot, and more into a single platform, Moonbeam solves today’s fragmented user experience — unlocking true interoperability and paving the way for the next generation of applications. The Moonbeam platform uses integrated cross-chain messaging to allow developers to create smart contracts that access services across many remote blockchains. This approach and Moonbeam’s developer-friendly EVM platform, vast tool support, and modern Substrate architecture create the ideal development environment for building connected applications.

About Wormhole

WormholeGo to page https://wormhole.com/ is a leading interoperability platform that empowers development and growth across blockchains. Launched in 2021, it enables seamless asset transfers across 23 blockchain networks and is a secure cross-chain messaging layer for digital assets, NFTs, oracle data, and governance. The Uniswap Bridge Assessment Committee recently recognized Wormhole as the only unconditionally approved protocol in all cross-chain deployments.

The Wormhole network has facilitated over $35 billion in transfers through hundreds of millions of cross-chain messages. For more information, visit wormhole.com or join our Discord community.