The interoperability parachain on Polkadot, Moonbeam, announced the integration with liquid staking service provider Lido. Polkadot’s governance token, DOT, will get flexible staking support with this partnership. It will enable users to stake their DOT in a number of yield opportunities across the Polkadot ecosystem.
The move to bring Lido’s liquid staking to Polkadot was also facilitated by blockchain auditing and staking specialist MixBytes.
Lido, which allows users to deposit their Ethereum holdings and earn a yield, has been launched on the Polkadot network.This will allow the DOT holders to stake their assets while maintaining access to the liquidity of that staked position and contributing to Polkadot’s security and stability.
- Lido users who stake their xcDOT (cross-chain DOT) will receive a staked DOT (stDOT) token in return.
- These xcDOT tokens which will act as ERC-20 assets also include native cross-chain capabilities.
- xcDOT and staked DOT (stDOT) can be used not only in applications on Moonbeam but across all applications on parachains connected to Polkadot.
- Additionally, stDOT is a rebasable token representing the accruing rewards on the staked tokens–without bonding delay.
- stDOT can be sold without waiting for an unbonding period while having the reduced risk of slashing events–a mechanism built by PoS protocols to discourage validator misbehavior.
- In comparison to DOT, xcDOT can be stored in a MetaMask wallet using either new or existing Ethereum addresses.
The Lido integration comes after the release of Cross-Consensus Messaging (XCM), which enables full communication between Polkadot parachains.
Derek Yoo, Founder of Moonbeam said, “Moonbeam’s native cross-chain integration features offered a solution where Lido could leverage their existing expertise with Solidity smart contracts, but securely extend those contracts to be cross-chain using Polkadot’s XCM technology.”
