Moonbeam, an Ethereum-compatible smart contract Parachain, announced it would connect the Balancer protocol with the Polkadot ecosystem.
According to Moonbeam’s announcement, the project can connect Balancer protocol with Polkadot’s ecosystem. It will 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 be able to earn a yield on those portfolios.
The announcement also revealed that Parity, the central development team behind Polkadot, would lead Balancer’s initial porting with Moonbeam’s support. For its compatibility with Ethereum Virtual Machine (EVM), Moonbeam has become the gateway for Ethereum-based projects to be deployed on Polkadot.
Balancer itself is a protocol that powers one of the Ethereum ecosystem’s biggest DEXes. Its total value locked (TVL) is above $1.7 billion, across multi-asset pools that are available to traders. Traders can quickly and easily swap Ethereum-based ERC-20 tokens in multi-asset pools.
Moonbeam’s compatibility with EVM makes it a perfect gateway for projects native to Ethereum(ETH) to move to other ecosystems. Moonbeam is not only working with Balancer. The project has teamed up with many other DeFi protocols such as SushiSwap, IDEX, Linear Finance, and others that are building on Moonbeam
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However, to encourage developers to come and maintain and provide liquidity for Balancer, it will be providing $10K worth of BAL tokens and Moonbeam will be providing 10K GLMR tokens (0.10% of genesis supply) as a grant to support the long term team and to provide initial liquidity to the system. 10K GLMR is equal to 0.10% of the token’s genesis supply.
At this time, Moonbeam is the key attractor for smart contract developers who might be interested to start using Polkadot.
