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Moonbeam and Lido to Bring Liquid Staking to Polkadot

Moonbeam and Lido to Bring Liquid Staking to Polkadot
  • Moonbeam is planning to collaborate with Lido to bring Liquid Staking to Polkadot.
  • It will provide a way for token holders to make productive use of their Polkadot ecosystem assets.
  • Project teams deploying to Moonbeam will be able to natively serve DOT as an asset.

Ethereum compatible smart contract platform on Polkadot, Moonbeam, has announced its plans to integrate and collaborate with Lido which is the largest liquid staking derivatives protocol currently deployed to Ethereum and Terra.

As announced by the companies, MixBytes will be in charge of driving this collaboration. The smart contact audits company has also been selected by Lido DAO to lead its technical integration for the Polkadot ecosystem. The integration will bring with it liquid staking to both Moonriver and Moonbeam, giving DOT holders the opportunity to stake their assets and access the liquidity of the stake position.

Lido’s deployment on Moonbeam is integral for its growth as a DeFi ecosystem, as it focuses on providing a way for token holders to make productive use of their Polkadot ecosystem assets. Not just this, but Lido is the largest and most used liquid staking protocol in the world. Its roots emerge from Ethereum staking, which has enabled it to now expand liquid staking to other protocols such as Terra and Solana.

“Liquid staking derivatives are an essential component to support the growth of the DeFi ecosystem on Moonbeam and Polkadot,”—Derek Yoo, Founder of Moonbeam.

About the integration he noted:

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.

Moonbeam will provide the underlying parachain infrastructure and cross-chain integrations to Lido for its expansion to Polkadot. Moonbeam’s Ethereum-compatible smart contract functionality will further allow Lido to use familiar Ethereum tools and existing code to get to market quickly.

Misha Putyatin, CEO of MixBytes stated regarding the collab and its role within it:

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. 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.

One major positive outcome of the partnership will be that project teams deploying to Moonbeam will be able to natively serve DOT as an asset. Its most important advantage will be that DOT holders won’t have to choose between staking yield on the Relay Chain and DeFi yield opportunities on Moonbeam. Along with this, additional TVL will be created as liquid staking derivatives increase the volume of assets flowing into Moonbeam. This will also result in higher transaction growth opportunities for DeFi protocols deployed to Moonbeam.

As of now, the Lido and Moonbeam engineering teams are working closely to deliver an initial liquid staking implementation on Moonriver as well, which is its Kusama-based sister network of Moonbeam.

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Lisa is excited about all things tech. She devotedly follows blockchain and crypto updates, sharing her passion through writing about it. She is a regular contributor for cryptocurrency news and articles.