- Moonbeam has joined hands with the largest liquid staking platform Lido to bring the service to Polkadot.
- Users will be able to stake and get liquidity for DOT on Moonbeam and KSM on Moonriver.
Moonbeam users will soon be able to stake and get liquidity for their Polkadot (DOT) tokens on the platform, as well as Kusama (KSM) tokens on Moonriver. This is after Moonbeam partnered with Lido, the largest liquid staking derivatives protocol which has up until now catered to Ethereum, Terra and most recently, Solana.
Liquid staking is becoming increasingly sought after at a time when users want the yields that come with staking with some flexibility on their staked assets. Lido has been leading this rapidly-growing sector and now, it’s bringing these benefits to the Polkadot ecosystem.
The collaboration will be driven by MixBytes, a team of developers that implements customized solutions for Ethereum, Polkadot and EOS applications.
The integration will bring liquid staking to Moonriver and Moonbeam and finally allow DOT holders to stake and earn while still accessing the liquidity of their assets.
Lido has focused on Ethereum for the longest time but has in recent times been expanding to other blockchain networks. For its expansion into the Polkadot ecosystem, it settled on Moonbeam as the latter has Ethereum-compatible smart contract functionality.
Misha Putyatin, the CEO of MixBytes explained, “After looking at a range of possible parachain partners and implementations including building an independent parachain, we were deeply impressed by the Moonbeam team and ambitions.”
Putyatin added:
Moonbeam meets our technical requirements with its EVM smart contracts, cross-chain integration capabilities and strong support of our protocol-level dependencies through their DeFi ecosystem which includes stableswap AMMs, lending and borrowing, and other protocols that Lido needs to be really successful.
Moonbeam to grow the Polkadot TVL
As Polkadot has grown to become one of the biggest projects in the cryptocurrency space, many projects have become attracted to the possibility of serving DOT as an asset.
“By providing DOT holders access to a parachain-based liquid staking derivative, DOT holders no longer have to choose between staking yield on the Relay Chain and DeFi yield opportunities on Moonbeam,” the firm states in its press release.
Moonbeam believes that by providing liquid staking, it will greatly increase the volume of assets flowing into its platform. Consequently, this will lead to substantial growth in the general Polkadot total value locked (TVL). Polkadot is trailing by a distance from leaders such as Ethereuma and the Binance Smart Chain.
Derek Yoo, the founder of Moonbeam remarked:
Liquid staking derivatives are an essential component to support the growth of the DeFi ecosystem on Moonbeam and Polkadot. Since we first met, we have been impressed by the Lido team’s technical sophistication, deep domain expertise, and the market traction of their protocol. We are excited to partner with them to bring DOT and other staking derivatives to the Polkadot ecosystem.
Also Read: Solana, Polkadot, and Polygon lead growth of the DeFi ecosystem taking market share from Ethereum
