Work on interoperability of different crypto projects continues to see progress, as Ethereum-compatible smart contract parachain, Moonbeam, recently revealed that it can connect Balancer (BAL) and Polkadot (DOT).
Balancer and Polkadot to connect via Moonbeam
According to Moonbeam’s announcement, the project can connect Balancer protocol with Polkadot’s ecosystem and add the value of the growing DeFi ecosystem to Polkadot’s chain. Moonbeam pointed out that Balancer provides very useful DeFi services for investors interested in creating portfolios that contain assets native to Polkadot’s system. Investors will even be able to earn yield on those portfolios.
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Balancer itself is a protocol that powers one of the Ethereum ecosystem’s biggest DEXes. Its total value locked (TVL) is above $1.5 billion, across multi-asset pools that are available to traders, where they can quickly and easily swap Ethereum-based ERC-20 tokens.
Moonbeam is also very compatible with Ethereum Virtual Machine, which makes it a perfect gateway for projects native to Ethereum (ETH) to move to other ecosystems, in this case, Polkadot.
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Moonbeam and Balancer to offer developer grants
Moonbeam is not only working with Balancer, however. The project has teamed up with a number of other DeFi protocols, including Linear Finance, SushiSwap, and IDEX.
However, to encourage developers to come and maintain and provide liquidity for Balancer, the project also provided grants. Balancer Labs will offer $10,000 in BAL tokens, while Moonbeam itself will offer 10,000 Glimmer (GLMR) tokens to those interested. 10,000 GLMR is equal to 0.10% of the token’s genesis supply.
Lastly, the announcement had one more thing to reveal, and that is the fact that Balancer’s initial porting with Moonbeam’s support will be led by Parity. As some may know, Parity is a central development team behind the Polkadot project.
At this time, Moonbeam seems to be the key attractor for smart contract developers who might be interested to start using Polkadot, and with this new move, interoperability in the blockchain industry is one step closer to becoming a real network that will someday revolutionize the flow of information on the internet.