Equilibrium, the cross-chain decentralized finance lending protocol, has planned to bring its US-dollar-pegged stablecoin to Moonbeam, a Polkadot project building an Ethereum-like blockchain.
It has been reported that DeFi projects building on Moonbeam will be able to use Equilibrium’s stablecoin as if it were native to the blockchain.
However, this includes decentralized exchanges, single-purpose lending protocols and other DeFi building blocks.
The report said that Moonbeam can be described as the “Ethereum on Polkadot” project, as it uses the same smart contract environment seen in Ethereum, featuring an Ethereum Virtual Machine and using the same convention for accounts and wallets.
As a consequence, Moonbeam supports Solidity smart contracts and allows developers and users to port their projects and wallets with minimal changes. At the same time, Moonbeam is a parachain, Polkadot’s equivalent of a shard. This allows other parachains to connect to Moonbeam with minimal effort, because of cross-parachain communication enabled by Polkadot’s relay chain, essentially, its equivalent of the Ethereum 2.0 Beacon Chain.
Likewise, this connection will be used by Equilibrium to bring its token to the Ethereum-enabled environment. The expectation is that Ethereum-based DeFi protocols will bring their projects to Moonbeam, directly connecting Equilibrium to the wider DeFi ecosystem. One such possible integration is SushiSwap, which is exploring the possibility of creating a sister protocol on Moonbeam.
Alex Melikhov, the CEO of Equilibrium, said:
“We feel that there is significant value in showcasing collaboration between specialized parachains where the sum can be greater than the parts for both parties.”
Thus, the launch will occur after Polkadot’s anticipated parachain auctions, expected to occur in early 2021.
Source: Cointelegraph