Moonbeam Joins Forces with Lido to Provide DeFi Liquid Staking on Polkadot
Polkadot-based smart contracts platform Moonbeam has partnered with liquidity staking protocol Lido.
The Ethereum-compatible platform plans to leverage Lido’s services to offer DeFi-liquid staking for investors on the Polkadot (DOT) network. Following the partnership, Polkadot joins Ethereum, Terra, and Solana as the fourth network to work together with Lido.
Bolstering the Polkadot Ecosystem
According to Moonbeam, MixBytes will oversee Lido’s collaboration with the smart contracts platform. The integration on the protocol will launch liquid staking to both Moonriver and Moonbeam as DOT enthusiasts get the chance to stake their holdings while accessing liquidity for their staking positions.
MixBytes CEO had the following to say about the partnership,
“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.”
The result of this partnership could boost the number of people looking forward to investing in DOT. Polkadot’s integration on Lido will enable the network to serve DOT as a digital asset further. Liquidity staking may very well boost the TVL position of DeFi protocols under the Moonbeam umbrella.
Deployment on the Kusama Network
Moonbeam’s founder, Derek Yoo, suggests that adding liquidity staking on the platform will bolster the growth of the DeFi ecosystem within the Polkadot network. The collaboration will also positively impact Kusama’s version of Moonbeam, Moonriver. Consequently, liquidity staking will enable Polkadot’s cross-chain messaging protocol (XCMP) to gain its first beneficial use case.
The XCMP-based integrations and the Lido protocol will be deployed on Moonriver later this year. Both will be used to provide secure access to key management and relay chain staking features of Moonbeam. Once the deployment is successful, Moonbeam will now gain the ability to serve DOT holders directly.
Moonbeam and Moonriver Set for Greater Times
Recently, Moonbeam announced its partnership with cross-chain interoperability solution Wanchain(WAN). Moonbeam plans to integrate Wanchain into Moonriver’s ecosystem to boost its connectivity with cross-chain DeFi protocols.
The move will enable users of the Kusama blockchain to effectively build more decentralized apps that work across several blockchain networks effectively. Furthermore, the integration will help users execute smart contracts with pioneering networks like Bitcoin and Ethereum.
However, Derek Yoo acknowledged that the crypto space is far from developing a reliable, interoperable DLT system. Nonetheless, he believes that Moonbeam’s partnership with Wanchain shows that things will improve as time flies.