MOONBEAM - A Growing DeFi Powerhouse
MOONBEAM - A Growing DeFi Powerhouse
Hey DEFI TIMES Community!
The future is interoperable. As time progresses, it becomes more and more clear that many blockchains will co-exist.
Ethereum will not be the only winner. However, it is still important today.
We need a way to make the transition from Ethereum-based-DeFi to Polkadot-DeFi smoother.
That's where Moonbeam comes in. It's an EVM compatible Polkadot parachain, allowing Ethereum protocols to switch to Polkadot without much effort.
You'll definitely enjoy this guest article by Katie from Moonbeam!
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Polkadot and Moonbeam: A Growing DeFi Powerhouse
Since its launch earlier in 2020, Polkadot has emerged as a competitive force in the blockchain industry, establishing itself as both a major cryptocurrency and one of the fastest-growing developer ecosystems.
Unsurprisingly, this flurry of activity and excitement has led many existing blockchain projects to evaluate how to best take advantage of Polkadot’s momentum.
The Moonbeam project is designed to aid these projects as they make the leap to multi-chain by providing an easy way to extend to Polkadot — whether they’re deploying for the first time or simply hoping to extend their existing applications to capitalize on Polkadot’s growth.
Let’s explore how applications like Moonbeam are driving change in the DeFi space.
The Shift to Multi-Chain
At PureStake, we’re big believers in what we call our “multi-chain future” — the idea that the continued evolution of blockchain technology will drive diversification and specialization for many chains to particular use cases, rather than the largely Bitcoin and Ethereum-centric focus we have today. We’ve seen this macro trend occur across a number of technologies over time, from computer hardware to distributed and cloud-based networks. The same will be true of blockchain in the years to come.
There are a number of different reasons that teams choose to explore a multi-chain deployment: lost market opportunities in existing chains due to high gas fees, the opportunity to become a first-mover in a new, less crowded environment, and even the promise of a better user experience through specialization and optimization.
Polkadot has whole-heartedly embraced this trend, choosing to focus on heterogeneity within its shards (“parachains”) from the very start. Its core framework, Substrate, enables this kind of diversity within the network, creating an ecosystem of many different chains, each specializing in particular use cases.
This open embrace of interoperability has made it possible for Moonbeam to build a Substrate-based chain that’s optimized for Solidity developers who are used to an Ethereum-based environment. With Moonbeam, existing projects can be re-deployed to Polkadot with minimal changes and new projects can be built without the economic restrictions caused by high fees. And since Solidity smart contracts can be deployed as-is, there’s no need to toss out the work you’ve already done.
Moonbeam: Complete Ethereum Compatibility
Moonbeam is the easiest on-ramp for building an application on Polkadot.
As an Ethereum-compatible smart contract platform, Moonbeam makes it easy to use popular Ethereum developer tools to build or redeploy Solidity projects in a Substrate-based environment.
While Moonbeam is based on the EVM pallet, the chain includes lots of additional functionality above and beyond what’s included in the EVM. This allows us to offer unmatched Ethereum compatibility:
Minimal Changes: if you have an existing contract, it will work right away with no need to rewrite or reconfigure
Familiar Languages: write smart contracts in Solidity or anything that compiles to Solidity bytecode
Use Existing Tools and dApp Front-Ends: connect popular tools like MetaMask, Remix, and Truffle via a complete set of Web3 RPC endpoints. Use well known Javascript libraries such as Web3.Js or Ethers.Js.
Unified Accounts, Addresses, and Signatures: use your existing Ethereum H160 accounts & ECDSA signatures to interact with Moonbeam
Publish-Subscribe Capabilities: subscribe to contract events and updates about on-chain transactions, balances, and more
Rapid DeFi Adoption
We’ve already announced a number of partners that plan to expand to Polkadot using the Moonbeam platform, and have dozens more in the works that will serve as the basis for a vibrant ecosystem at launch.
We have deployments currently underway for projects like:
e deployments currently underway for projects like:
SushiSwap, a fork of Uniswap that gained rapid usage and liquidity over the summer and recently announced the BentoBox lending solution.
BetProtocol, an Esports betting and crypto-casino protocol, will develop an implementation of their system on the Moonbeam Kusama and Polkadot networks, to allow entrepreneurs to launch blockchain betting apps with no coding required.
Linear Finance, the first cross-chain compatible, synthetic asset protocol, is also working on projects that will leverage Moonbeam smart contracts.
Injective Protocol, the first layer-2 DEX that unlocks the full potential of decentralized derivatives and borderless DeFi.
DeFi developers that are planning to build on Polkadot can leverage these protocols as they build or re-deploy their applications to the new network.
We have a number of announcements planned in the coming weeks. You can keep up-to-date on the latest developments via the website and Telegram channel.
All information presented above is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This article's content solely reflects the opinion of the writer, who is not a financial advisor.
Do your own research before you purchase cryptocurrencies. Any cryptocurrency can go down in value. Holding cryptocurrencies is risky.