Dot Finance, A DeFi Aggregator, is Migrating to Moonbeam on Polkadot
Dot Finance is migrating to Moonbeam, a Polkadot Parachain, and is integrating with Moonriver, a press release on January 4, 2022 shows.
Migrating to Moonbeam is Vital for Growth
The Dot Finance team, most of whose members formerly contributed to developing Bancor, aims to build a DeFi aggregator for the rapidly growing Polkadot ecosystem. Their goal is to launch a proven protocol to maximize returns via innovative yield optimization strategies.
Following this announcement, the development team is now adapting critical smart contracts governing Dot Finance’s core features for Moonriver, the companion network to Moonbeam. Moonriver provides a community-led platform where new code can be thoroughly tested before being shipped to Moonbeam on Polkadot.
Nir Rozin, the co-founder of Dot Finance, said the integration with Moonbeam is crucial for growth:
“Bringing our yield aggregation products to Moonbeam is pivotal for Dot Finance’s growth trajectory. Merging Dot Finance’s tools for DeFi with Moonriver’s safe, secure, and resilient architecture will help spearhead Polkadot adoption while reducing participation barriers for users.”
The team will first move Dot Finance’s automated yield farming contracts before deploying the protocol’s two main strategies. The first strategy adopted for Moonriver is set to compound the value of a user’s liquidity pool tokens, while the second is for directly farming the SOLAR token through the Solarbeam’s in-built staking feature. Solarbeam is the largest decentralized exchange in the Moonriver ecosystem on Kusama. Native to the DEX is SOLAR, a governance token.
Partnership with Dai and AnySwap, Plans for SushiSwap and Chainlink
For a safe, hacker-proof farming experience, the protocol has integrated Dai’s decentralized oracles.
Dot Finance has indicated that nine pools will be supported, including SOLAR/MOVR, USDC/MOVR, ETH/MOVR, WBTC/MOVR, USDT/USDC, DAI/USDC, for the deployment of its auto-compounding strategy.
For fast migration of its native PINK tokens from the Binance Smart Chain (BSC) to Moonriver, Dot Finance has also announced a partnership with Multichain Cross-Chain Router Protocol, formerly known as AnySwap, on launch. AnySwap is a cross-chain decentralized exchange with an automated pricing and liquidity system based on Fusion DCRM technology running on various blockchains, including Fusion, BSC, Ethereum, and the Fantom networks.
Through this collaboration, a bridge between BSC and Moonriver will be built. Because the migration to Moonriver is incentivized, Dot Finance has announced the launch of other PINK pools on Moonriver, encouraging token holders to shift base.
These pools will have high APYs for users who stake the PINK and the PINK-MOVR LP tokens. MOVR is the native token of Moonriver. Accordingly, the Dot Finance team has said it will distribute extra five million tokens as rewarded to participants in each pool on top of the current staking rewards, which will be stopped on BSC once the migration is complete.
The team also plans to integrate more protocols. However, in the immediate term, Dot Finance is looking to incorporate SushiSwap—a multichain DEX– to maximize users’ farming returns. During this period, Dot Finance will also rope in the services of Chainlink on Moonriver, a reputable decentralized oracle provider powering most DeFi protocols in Ethereum. With Chainlink in the equation, it would be tough for third parties to maliciously manipulate token prices through tactics as flash loan attacks. In turn, this gives leeway to Dot Finance to add more price feeds.
Dot Finance’s code has been audited by Zokyo and Hacken, two of the sphere’s leading blockchain security firms.