Moonbeam takes another step in creating an Ethereum (ETH) on Polkadot (DOT). The project was successful in attracting Equilibrium and its dollar-backed stablecoin project. Moonbeam could create many SUSHIs in Ethereum if it could convince Ethereum-based projects to connect to its protocol first; some might even decide to migrate there permanently afterwards.
Moonbeam DeFie Ethereum with Equilibrium
DeFi protocol Equilibrium will introduce its dollar backed stablecoin on Moonbeam, the project based on Polkadot who wants to build a blockchain similar to Ethereum.
Applications based on Moonbeam will be able to use the stablecoin fromEquilibrium as if it were the native blockchain token.
Moonbeam uses the same smart contract environment asEthereum : it includes a Ethereum Virtual Machine (EVM) and similar functionalities in terms of accounts and wallets.
Moonbeam is also a parachain, the equivalent of a shard on Polkadot. This allows other parachains to connect to Moonbeam, thanks to the relay chain of Polkadot. It is essentially an equivalent of the Ethereum 2.0 beacon chain.
The objective would be to encourage other projects based on Ethereum to connect to Moonbeam, thus allowing Equilibrium to access a larger DeFi ecosystem.
One of these projects would be SushiSwap, whose team would study the possibility of creating a twin protocol on Moonbeam.
A net against liquidations
The CEO of Equilibrium, Alex Melikhov, had indicated that it was important to highlight the possibilities offered by collaboration between several specialized parachains.
Equilibrium is a cross-chain money market protocol that allows the deposit of collateral to create a decentralized stablecoin, similar to MakerDAO.
Originally designed on EOS, Equilibrium moved the core of its protocol to Polkadot during summer.
Equilibrium has a bailout mechanism in the event of liquidation. Unlike similar protocols, liquidations are handled by permanent liquidity providers who receive a percentage of the platform’s income in return.
Is Moonbeam going to give Ethereum a boost to support DeFi or will it risk being an Ethereum killer, especially if the actual deployment of ETH2 still takes years. Equilibrium deserted EOS to join Moonbeam. SushiSwap is also interested in the latter’s offering. Moonbeam has the ability to expand the Polkadot ecosystem by attracting DeFi players. A small ray of the moon to make the peas grow bigger?
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