According to a recent series of tweets by Polkadot, Uniswap, the most widely used decentralized exchange (DEX) based on daily traded volume, is set to make its debut in the Polkadot ecosystem via the Moonbeam Network parachain. This integration is anticipated to significantly enhance liquidity and trading volume across the ecosystem.
Uniswap offers users a trustless, permissionless, and non-custodial method to access a broad range of tokens. Its entrance to the Polkadot ecosystem propels forward the development of a novel universe of decentralized financial (DeFi) products and services on Polkadot.
Oelassar, Global Head of Growth & Business Development at Parity Tech, commented on the development. “Polkadot is a strong fit for Uniswap, whose users can discover the network’s high performance, scalability, security, and interoperability. Polkadot’s DeFi ecosystem benefits from a marquee name in the space.”
Moonbeam, a layer-1 Polkadot parachain, enables full Ethereum Virtual Machine (EVM) compatibility, native interoperability, and prioritizes secure cross-chain integration solutions. Over the last year, the network has reported significant user growth.
The initiative to bring Uniswap to Polkadot and Moonbeam has been led by the University of Michigan Blockchain group. This proposal has successfully passed through Moonbeam’s governance process today, with robust community support. Upon activation, all parachains within the Polkadot ecosystem will have immediate access to Uniswap.
This development marks a significant milestone for Polkadot as it continues to foster innovation and inclusivity in the blockchain industry. By welcoming Uniswap, one of the flagship platforms in the DeFi space, Polkadot is further positioning itself as a leading hub for decentralized finance, ensuring its users have access to the most advanced and diverse range of DeFi services.
Thanks to the latest integration of Chainlink oracle into the Moonbeam smart contract platform, developers in the broader Polkadot ecosystem can now access reliable price feeds as they seek to build functional DApps.
While the access to Chainlink oracles was first introduced into Moonbeam back in December last year, the access was to permit the parachain’s developers to access the needed data through the Chainlink oracle resident on Polkadot. The latest integration is a more direct linkup and is projected to expand the activities on the Moonbeam network.
“Price Feeds complete a critical component of Moonbeam’s developer infrastructure, and that’s something that will lead to the development of future DeFi products,” Niki Ariyasinghe, global head of partnerships at Chainlink Labs, said in a message.
Chainlink Oracles helps developers within a blockchain ecosystem work with external data from a particular protocol, helping to create applications based on data integrity. Considering how vital their roles are in the industry, stakeholders within the Moonbeam community had been requesting that Chainlink oracle be integrated for quite some time as confirmed by Derek Yoo, founder of the Moonbeam Network.
“Chainlink was a top requested feature from our community, and with the integration in place, friction is further reduced for developers building DeFi and other use cases,” Yoo said, noting that Chainlink is a “reliable oracle service.”
The Moonbean Network came on as the second winner of the parachain auction slot to build on the Polkadot blockchain back in November last year. Like the other winners including the Astar Network and Acala amongst others, Moonbeam is interoperable with the main Polkadot block known as the Relay Chain as well as the other parachains.
This interoperability will easily aid the integrated Chainlink Oracle to feed every developer in the Polkadot ecosystem, helping them to create new solutions across the board.
An eagerly anticipated Polkadot-based project is lighting up the night sky after crypto exchange Binance announced plans to list the token.
Moonbeam (GLMR) is a smart contract platform compatible with the Ethereum Virtual Machine (EVM) that functions as a Polkadot parachain. The project goes beyond Ethereum’s base features by also offering staking, on-chain governance and cross-chain integrations.
The project highlighted its launch via a series of tweets.
“Moonbeam is the first fully operational parachain on Polkadot.
Moonbeam’s successful launch follows a broadly supported crowdloan campaign hosted by the Moonbeam Foundation! 35M+ DOT tokens (~$944M USD at the time the crowdloan ended) were contributed from 200k contributors worldwide.”
The freshly minted altcoin was released yesterday at a price of $10.57, then surged by 84.4% to a high of $19.50.
Moonbeam has since corrected and currently trades for $13.47 for an overall gain of 27.4% since first being listed.
Moonbeam’s sister project Moonriver (MOVR) also saw its price go vertical after being listed by Binance back in early November. MOVR operates on Kusama (KSM), Polkadot’s canary network.
Polkadot (DOT) is the #9 crypto asset by market cap and valued at $25.72. The interoperability project recently launched its parachain feature.
Binance says GLMR will be available in the Bitcoin (BTC), Binance USD (BUSD) and Tether (USDT) trading pairs.
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Featured Image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia
Moonbeam has completed its parachain launch on Polkadot.
Crowdloan contributors can now claim their Moonbeam token rewards and stake them on the network.
Key infrastructure is set to go live on Moonbeam over the coming weeks, including Chainlink and The Graph.
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The Moonbeam Network has announced the completion of its launch process, becoming the first fully operational parachain on Polkadot.
Moonbeam Debuts on Polkadot
The era of Polkadot parachains has begun.
Moonbeam became the first fully operational parachain on Polkadot Tuesday, completing its three-part launch process that started three weeks prior on Dec. 17. The full launch has removed the network’s superuser key, handing control directly to Moonbeam token holders.
The first stage of Moonbeam’s launch started with centralized block production. Once developers confirmed everything was running smoothly, independent collators were added to help decentralize the network. Now that Moonbeam has fully launched, the network has reached a minimum of 48 collators and has activated Ethereum compatibility and token staking.
Those who contributed to the Moonbeam parachain auction crowdloan that took place in November can now start claiming their Moonbeam governance token rewards. Initially, contributors can claim 30% of their total allocated GLMR tokens, plus an additional three weeks’ worth of vested emissions starting from when the launch process began. The remaining 70% of rewards will be released incrementally over the next 96 weeks.
Token holders can also start delegating their GLMR tokens to a collator to earn staking rewards. The reward distribution is based on the number of tokens a user has contributed versus the total amount bonded to the collator, similar to how staking rewards are distributed on other Proof-of-Stake chains.
Moonbeam’s GLMR token has enjoyed a strong start to trading, climbing 66% on the day. The token is currently trading at $17.44 at press time.
GLMR/USD chart. Source: CoinGecko
Moonbeam is an Ethereum-compatible smart contract platform built on one of Polkadot’s parachain slots. As a parachain, Moonbeam is secured by the main Polkadot relay chain and will enjoy interoperability with subsequent parachains as they go live.
Because Moonbeam is compatible with the Ethereum Virtual Machine, developers can easily port over applications from the Ethereum mainnet with relatively few changes to the underlying code. As such, in the weeks following Moonbeam’s launch, key infrastructure from Ethereum is set to launch on the network, including Chainlink oracles, indexing protocol The Graph, and several multichain bridges.
Before establishing itself on Polkadot, Moonbeam launched its Moonriver companion network on Polkadot’s canary network called Kusama. Like Moonbeam, Moonriver is also EVM-compatible and currently hosts 30 applications, including many multichain protocols such as decentralized exchange Sushi and yield optimizer Beefy Finance. Following the success of Moonriver, many in the Polkadot community are hoping Moonbeam will also be able to foster a thriving DeFi ecosystem.
Disclosure: At the time of writing this feature, the author owned ETH, GLMR, DOT, and several other cryptocurrencies.
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Polkadot Holders Are Backing Acala and Moonbeam for Parachains
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In what is best described as a precedented move, the Astar Network has won the third parachain auction slot on the Polkadot Network.
With the total number of positions filling up so fast, the capabilities of the Polkadot blockchain are now being stretched, just as it is designed to operate.
Riding on the prior successes of Acala and the Moonbeam networks, Astar Network raised a total of 10,333,552 DOT coins worth approximately $372.9 million to secure the third slot from more than 27,000 contributions. Astar Network will now be joining the limited number of protocols that would be launching with the parachain network later this December.
Astar Network is formerly known as Plasm Network, and it represents a unique technological offshoot built on the Polkadot network. It is essentially a Substrate Runtime Module Library that allows developers to add Plasma functions to their Substrate chain. By adding an Astar (previously Plasm) Substrate Runtime Module Library, developers can get scalable blockchains within a few minutes. The tailored capabilities of these blockchains now reside with the respective developers to fathom.
Astar Network saw a massive backing in its bid toward the Polkadot auction. While the protocol and the work it is fronting is being acknowledged by Venture Capital firms and angel investors like Binance Labs, PAKA Ventures, and OKEx amongst others, Digital Finance Group allocated 300,000 DOT tokens worth approximately $12.8 million tokens to support the auction bid of the Astar Network back in November.
Just like other previous winners, Astar Network will be rewarding its backers with its native tokens as the participant’s DOT tokens get locked for the duration in which the auction slot will be opened. There are bound to be two more contenders to make up the predefined 5 slots for the parachains. While the competitions continue to hit up, Clover Finance and Parallel Finance are still amongst the favorites to win the next slots, if the tides do not change in the coming days.
Moonbeam, an emerging protocol that prides itself as one of the most powerful Ethereum-compatible smart contracts on the Polkadot blockchain, has won the second parachain auction slot, riding on the wings of over 200,000 of its diverse community.
The keenly contested auction ended in the protocol’s favour after it secured a total of 35 million DOT (approximately $1.4 billion) from the participating community members.
The Polkadot blockchain is building its capability to host parachains or sub-smart contracts that can foster robust interoperability and transfer assets across the board. With five parachains billed to be floated in December, the Moonbeam success in the auctions trails that of Acala which Blockchain.News reported made the first breakthrough last week.
“Moonbeam has set a new precedent for crowdloans, receiving the largest total contribution from the most contributors by far,” the Moonbeam Foundation said in the official announcement. “Over 200,000 participants contributed DOT to the crowdloan across all sources, including the Moonbeam Foundation DApp, supporting exchanges, wallets, and liquid staking providers. The average contribution was approximately 170 DOT per participant, indicative of the broad participation from Moonbeam’s global community.”
At present, more than 95 million DOT tokens, approximately $3.8 billion, have been locked in crowdloans for parachain projects across the ecosystem. There are three more protocols in the running to win a slot as part of the parachains on Polkadot. Based on the total contributions in each protocol, according to data from Parachains.info, Parallel Finance, Astar, and Clover Finance are the most favoured to win the auctions at the time.
While the contributed DOT tokens are billed to be locked for the duration in which the parachain slot will be leased, participants are billed to be incentivized adequately for their support. The Moonbean Foundation said its rewards now account for 15% of its total GLMR token supply.
Welcome to the latest edition of Cointelegraph’s decentralized finance newsletter.
Read on to discover why almost half of the liquidity providers on Uniswap v3 are losing capital due to impermanent loss.
What you’re about to read is the smaller version of this newsletter. For the full breakdown of DeFi’s developments over the last week, subscribe below.
Acala wins Polkadot’s debut parachain auction
Decentralized finance protocol Acala was announced as the winning project in Polkadot’s inaugural parachain auction this week, beating fellow competitor Moonbeam to the finish line with a seismic total of 32.5 million DOT ($1.28 billion) raised from 24,934 contributors.
Acala is a multi-functional DeFi platform built on Polkadot that enables developers to build smart contracts applications with cross-chain capabilities, as well as being compatible with Ethereum. Its top investors include Digital Currency Group, Polychain Capital and Alameda Research, among others.
In the case of Acala, all of the proceeds from the crowdloan initial coin offering are classified as “crypto debt” and, therefore, must be paid back by the project following the conclusion of the rental agreement.
With over 32M DOT contributed by over 81,000 community members, Acala has won the first parachain auction on @Polkadot!
Thank you to everyone who took part in this historic event. (1/3) pic.twitter.com/CL2jCwA9Re
— Acala – DeFi Hub of Polkadot (@AcalaNetwork) November 18, 2021
Related:DFG piles $12.6M into Astar Network’s Polkadot parachain bid
Iota Foundation set to launch staging network and reward token
The Iota Foundation, an open-source, nonprofit entity endeavoring to support the Iota ecosystem, announced the upcoming launch of a staging network, Shimmer, this week alongside an accompanying token asset, SMR.
Shimmer is a layer-one sandbox platform that will enable builders and developers to test the efficiency and compatibility of their decentralized applications within the DeFi and NFT space, prior to deployment on the Iota mainnet.
Expected to launch in early-2022, the network will also facilitate community governance confirmations for Iota’s large-scale network upgrades, including the upcoming programmable multi-asset ledger, smart contracts, full decentralization and sharding.
Related:Iota launches beta smart contracts to foster interoperability
Almost 50% of Uniswap v3 liquidity providers are in the red
A research report published this week by Topaz Blue and the Bancor Protocol revealed that almost half, 49.5%, of liquidity providers on Uniswap v3 have experienced financial losses due to impermanent loss, a common occurrence on automated market makers when supplying two-sided, volatile liquidity pairs.
An instance of this would arise if, for example, a user has supplied equal values of Tether (USDT) and Ether (ETH) in United States dollars to a liquidity pool and the price of ETH goes up.
This would mean that arbitrageurs — investors who often work in accordance with financial institutions to benefit from price discrepancies in the market — will remove ETH from the pool to sell at a higher price. This leads to a decrease in the U.S.-dollar value of the user’s position and, consequently, an impermanent loss.
The report suggested that, based upon current statistics, it may well be more profitable to simply hodl the market, as opposed to actively participating in liquidity services, stating:
“The user who decides to not provide liquidity can expect to grow the value of their portfolio at a faster rate than one who is actively managing a liquidity position on Uniswap v3.”
Related:Bancor releases no-liquidation lending with Vortex as AMMs continue diversification
Token performances
Analytical data reveals that DeFi’s total value locked has decreased 7.89% across the week to a figure of $160.47 billion.
Data from Cointelegraph Markets Pro and TradingView reveals DeFi’s top 100 tokens by market capitalization performed indifferently across the last seven days.
Avalanche (AVAX) secured the podium’s top spot with 30.11%. Curve DAO Token (CRV) came in second with 0.67%, while Maker (MKR) came third with 0.34%.
Analysis and hot topics from the last week:
Thanks for reading our summary of this week’s most impactful DeFi developments. Join us again next Friday for more stories, insights and education in this dynamically advancing space.
Riding on the strength of over 81,000 community members, Acala Network, an Ethereum-compatible smart contract platform optimized for Decentralized Finance (DeFi) won the first parachain auction on the Polkadot network.
The historic milestone comes after investors committed more than 32 million DOT tokens worth more than $1.28 billion. The DOT was donated as loans to the Acala Network and is billed to be repaid by the platform with extra incentives in the form of the protocol’s native token, ACA.
The Polkadot Network is an inter-chain decentralized and smart chain protocol that fuels the movement of assets between its parachains. The network’s council floated the first parachain for auction and is billed to see five different protocols becoming the first set of platforms to be launched on December 17.
With Acala’s win, four more projects are now in the bid to secure a similar spot in the coming days.
“With over 32M DOT contributed by over 81,000 community members, Acala has won the first parachain auction on @Polkadot! Thank you to everyone who took part in this historic event,” the protocol said in a tweet. “It’s a testament to the strength of @Polkadot that so many talented teams are in the running to be among the first five projects to launch on Dec 17. In this respect, we’re all winners. We’re looking forward to kicking off the multi-chain future with you!”
The second parachain auction is ongoing with Moonbeam, an Ethereum (ETH) compatible smart contract platform designed for building interoperable applications on track to win the second spot. While the protocol is still under development with its main net billed to launch before the end of the year.
Thus far, Moonbeam has garnered a total of 34.2 DOT worth $1.36 billion, advancing its position alongside other protocols including Clover Finance, and Manta Network amongst others. The surging demand for the DOT token is projected to boost the price of the coin in the coming weeks.
Decentralized finance (DeFi) protocols have gained significant traction in the cryptocurrency sector, with a total value locked surpassing $271 billion, based on data from DefiLlama. One exceptionally popular category of DeFi services is that of decentralized borrowing and lending, where users can pledge their crypto as collateral and take out stablecoin loans (or vice versa) to pay for everyday expenses while their investment continues to grow.
Total value locked in DeFi.Source: DefiLlama
Such protocols typically charge a spread or difference between deposit and lending rates as a service fee. But then there are protocols like Minterest that seek to distribute a vast majority, if not all, of their profits back to users. Earlier this month, Minterest launched on Moonbeam, an Ethereum-compatible smart contract parachain on the Polkadot network. During an exclusive interview with Cointelegraph, Minterest CEO Josh Rogers further elaborated on the goals of building a user-oriented DeFi platform.
We’re proud to be the only @MoonbeamNetwork-native protocol on that list, as well as the only lending/borrowing protocol. #DeFiTwoPointOh let’s go!
Thank you ducky for your impressive work in collating and keeping up with these statistics! https://t.co/twn0xAyoDo
— Minterest (@Minterest) November 17, 2021
Cointelegraph: Your firm claims to be the world’s first lending protocol that captures 100% of value from interest, flash loan and liquidation fees, which then get passed on to users. Would you care to elaborate on that?
Josh Rogers: Traditionally, what happens is that when you look at models, when you look at value capture, what you notice is that there are different parties who are beneficiaries. So, you are looking at lending protocols where the owners/developers take profits out. You have external liquidators who act as the third party who extract liquidation fees. And the thing to especially know about is flash loan fees, which may be extremely [inaduible] to the community in some way. But the thing to know about is that, that value capture fee-income protocol, goes to all these different parties. The intention with Minterest is that we capture all of that fee income on-chain, on the protocol, then we distribute it around the community of users in a way in which we believe is much bigger and much more inclusive. One of the things that stand out in bringing out an auto-liquidation process is that the protocol fee income it captures is far more significant than anything else out there because that fee income is normally lost from the protocol.
CT: So, what are some expected yields from passing off those revenues to users?
JR: Well, what happens is, the answer is I don’t know [laughs]. It’s very difficult for me to forecast that kind of thing. But when you think about this very type of headline, if you are looking at some of the value captures of the sector, it’s measured in the hundreds of millions of dollars. But what’s interesting is that when you look at lending protocols, generally there is no correlation between the supply of liquidity and lending activity and the token price. So, the value of the token is not correlated with protocols’ performance.
We do that when we capture all of this fee income. The protocol goes out on-market, and Minterest buys back its own tokens, and it distributes that token through to its users. Now, it’s not for me to say, and a big disclaimer is that I’m not trying to provide forecasts. But if you do headline numbers, if the protocols generate $100 million of fee income, which we should probably do when the borrowing is between $3 billion to $7 billion, that means the protocol is spending $8 million a month on its token. The protocol emits 820,000 tokens per month as part of its liquidity mod. So, if you’re spending $8 million a month and the token price is $10, then the protocol can supply all the tokens that it emits back, which is unrealistic. If the protocol is $8 million a month, then what is the token price? The answer is it’s more than $10. Now, at $40 a token, it’s buying back 50% of token emissions. At $80, it’s buying back 10%, which probably sounds more realistic.
The answer to the question is somewhere in there, or maybe more. The intention here is, and the reason that is important for the protocol generally is that it can compete with others in terms of APY. The more the token prices increase, the greater the internal APY that is actually being caused for the borrowers and lenders. That means it can attract more liquidity, outcompete and gain more longevity and relevance.
CT: Why choose Moonbeam, in particular, to launch your protocol?
JR: Well, there are a couple of key things. One, there’s the question of why Polkadot first, and why Polkadot is much more than another Solana or Algorand. There are some very powerful things about Polkadot that we really like. Initially, Minterest was built on Substrate — it was built to have its own parachain. But what it really came down to was actually time.
CT: One of the biggest barriers to entry for new DeFi users is probably high gas fees. What is Minterest doing to mitigate this?
JR: Well, that’s one of the beauties of being on Polkadot, as well as being on Moonbeam. Gas fees literally go away as a concern. When you think of one coming out of Ethereum with different degrees of success, but at the end of the day, that’s what the Polkadot architecture is designed to do. It’s designed to enable vast numbers of transactions to occur while still retaining very, very low gas prices and very, very high latency. So, that’s one of the key benefits: We see gas prices as becoming a nominal concern, a concern that will disappear on Polkadot. The gas prices just become fairly insignificant, not just for a brief period of time but permanently. And that’s a very important consideration.
CT: Has the platform been audited, financial- or programming-wise?
JR: We are actually going through three audits. We’ve got auditors coming in next month, so we’ve got three very significant work firms coming, and the audit process really goes into [inaudible]. Again, we’ve got more than 10,000 lines of code. It’s the most significant kind of codebase of any lending protocol out there. So, that process takes time. But we obviously are not going to be doing anything until we get these things off. We’ve got internal security onboard on our team, but you don’t rely solely on auditors alone from our perspective. Auditors are really there to ensure that nothing gets missed. And we consider audit-team relations to be ongoing. We really want our relationships to be with very, very incredible audit firms. So, the idea lies with security and trust.
CT: What are some steps Minterest is taking to protect users’ assets from malicious activities?
JR: That’s actually part of building the protocol. One of the key things is that when it actually catches value like Minterest does, it’s not a very big step to self-insure, but to build out the fee income it captures. But at the end of the day, what this comes down to is that building out protocols is not simple. So, while there are hundreds of DeFi projects around, it’s really a small handful of significant lending protocols, and the reason why is they are expensive to do well. If you want to do them cheaply and quickly, five guys in a garage could do. We have a team of 30 to 40 full-time staff, and that is not an insignificant exercise. The reason why we do that is because that’s what it takes to do it at a level to ensure these sort of events you are seeing across smaller protocols don’t occur. And by the way, mistakes can get made. You saw recent issues happening with one of the leading protocols; it wasn’t an exploit, it was just a small mistake, and I regard their teams as extraordinary professionals. That’s the reason why we build some form of insurance into the system, so that people don’t lose their money.
CT: What is your overall vision for Minterest?
JR: We want to build Minterest as a fairer financial system. And the reason we think it’s fairer is because when you look at lending protocols, people get liquidated very significantly, and that money goes off-protocol. What this is about is how do the people that create the value of the protocol benefit. And the people who create the value of the protocol are a large ecosystem of users, not just a small subset. So, what Minterest is built out to do is to enable people to really benefit from the value they create from participation. We think bringing a new design and framework to the protocol is going to be a new piece of innovation inside this sector. One of the things to look at is that sector leaders in the space have all brought breakthrough innovation. You look at Maker, you look at Curve, you look at Aave — each of the three protocols has brought enormous innovation into the space, innovation that I deeply respect. We like to think Minterest is also a very new innovation to the space for the benefit of the people, and that’s really what the protocol is about.
On Thursday morning, Acala, a decentralized finance (DeFi) protocol operating on the Polkadot (DOT) network, announced it had won the first-ever Polkadot parachain auction.
Acala raised a total of 32.5 million DOT, worth roughly $1.28 billion, from 24,934 contributors via an initial coin offering (ICO) structured as a crowdloan. As the proceeds are classified as ‘crypto debt,’ Acala would eventually need to pay back the DOT it had solicited from investors. Users’ DOTs are locked for the duration of the rental agreement for Polkadot’s parallel chains up for sale.
It’s a testament to the strength of @Polkadot that so many talented teams are in the running to be among the first five projects to launch on Dec 17. In this respect, we’re all winners. We’re looking forward to kicking off the multi-chain future with you! (2/3)
— Acala – DeFi Hub of Polkadot (@AcalaNetwork) November 18, 2021
Polkadot is an inter-chain smart contract network that enables the transfer of assets between its parachains. Earlier this month, its developers deployed the first parachain for auction. However, the technology is still undergoing heavy development. Nevertheless, at the time of publication, Polkadot projects have raised over 87.6 million DOT ($3.44 billion).
The second Polkadot parachain auction is ongoing, with the spot up for leasing for the next two years. Currently, the projected winner is Moonbeam, an Ethereum (ETH) compatible smart contract platform designed for building interoperable applications. It is in active development and expected to launch its mainnet by the end of the year.
Thus far, Moonbeam has raised 34.28 million DOT, or roughly $1.35 billion, in its auction from over 46,000 contributors. Investors will receive one Moonbeam (GLMR) token for each DOT they pledge, with 30% of rewards immediately available for claiming, and the remaining 70% shall vest throughout the 96-week lease. The reward pool consists of 100 million, or 10%, of its token supply of 1 billion. GLMR’s token inflation stands at 5% per annum.
@MoonriverNW hits a new milestone! https://t.co/ojg2E4ycpx
— Moonbeam Network (@MoonbeamNetwork) November 17, 2021
