Polkadot’s infrastructure now offers its customers an even more unique option. Leading DeFi Lido introduced the concept of liquidity betting to a pioneering cross-chain network.
Moonbeam platform and Lido agreement cooperate to promote mobile betting
According to the press release, the team at Moonbeam, a Polkadot smart contract platform compatible with Ethereum, has partnered with Lido, the pioneer of Polkadot decentralized mobile betting.
Moonbeam is a parachain on Polkadot that offers smart contracts and the ability to interact with Ethereum. Moonbeam extends Ethereum’s capabilities by adding features such as on-chain management, stacking, and crosschain integration. The project was launched in January 2020 by Derek Yu of Pure Stake, a company that provides tools and infrastructure services to blockchain developers.
Lido is an ETH 2.0 retail stacking solution created to solve liquidity problems and supported by several leading stacking vendors. It makes ETH stacking liquid and allows participation with any amount of ETH.
Lido DAO chose MixBytes as their technology partner for collaboration with Moonbeam. Once launched, holders of Polkadot’s native core DOT can pledge it without losing the ability to receive committed liquidity.
Therefore, cryptocurrency enthusiasts who join Polkadot can use their assets more efficiently. Polkadot becomes Lido’s fourth platform because it has integrated Ethereum, Terra, and others.
Derek Yoo, the founder of Moonbeam, emphasized the importance of the newly announced collaboration of Polkadot and Kusama’s ecosystem:
«Liquid Pledge derivatives are an important part of supporting the development of the DeFi ecosystem on Moonbeam and Polkadot. Since our first meeting, we have been deeply impressed with the technical maturity of the Lido team, their extensive expertise, and the market appeal of their agreement. We are very excited to work with them to introduce stDOT and other Pledge derivatives into the Polkadot ecosystem».
The benefits of this partnership
Based on Ethereum betting, Lido is considered the largest and most well-known liquidity betting protocol worldwide. Thanks to a partnership with Moonbeam, Lido is more likely to expire in the marketplace using Ethereum’s existing code and tools. Moonbeam will give Lido its own interchain integration ecosystem and parachain infrastructure to ensure that smart contracts compatible with Ethereum are executed on Lido.
One of the stronger qualities of the integration between Moonbeam and Lido is the presence of DOT as a personal asset. DOT holders do not have to choose between DeFi’s exit probabilities in Moonbeam and the profitability of bets in the relay chain. It is anticipated that liquid betting derivatives will be able to increase the size of the influx of assets into Moonbeam, most generating a supporting ability to lift transactions and TVL for DeFi protocols deployed in Moonbeam.
Lido to move to Moonriver soon
CEO of MixBytes, says that this collaboration is possible because of the revolutionary, modular, and interoperable design of Lido and Moonbeam. Because Polkadot customers can use the mobile pledge option, they no longer have to choose between the revenue pledge in the relay chain and Moonbeam’s “yield farming” option.