Polkadot’s XCM Introduces New Use Cases For DOT
- Polkadot scheduled 28 parachain auctions until February 2023.
- 99% of validators have staked 1.8-2.6 million DOT on Polkadot.
On Wednesday, Polkadot upgraded and launched the Cross Consensus Message Format (XCM), allowing its parachains to gain access to “trustless interoperability”. Polkadot, a nominated proof-of-stake (NPoS) blockchain, aims to troubleshoot the lack of compatibility between parachains through XCM. Assets will be transferred across multiple chains under high security.
According to CMC, the price of the native token, DOT, spiked to attain its high at $16.34 on Thursday after the launch of XMC.
Upgraded Multi-chain Ecosystem
Moonbeam, an EVM compatible smart contract platform, hosts several interoperable DApps on the Polkadot network. XC-20 tokens, a class of ERC-20 tokens that are compatible with cross-chains, confer the interoperability to DotSama, Polkadot and Kusama ecosystems. On Thursday, $xcDOT, the first native XC-20, went live on Moonbeam.
The Moonbeam Team stated:
“The implementation of xcDOT will allow users to move their DOT quickly and simply, and use it on a growing number of DApps. xcDOT gives Polkadot supporters more ways to enjoy the EVM-based ecosystem that is flourishing on Moonbeam.”
DOT was limited to use-cases such as staking, governance and crowdloans related to parachain auctions. With the activation of XCM, the token’s use-cases expanded onto the parachains. Notably, DOT holders can lock their tokens in liquid staking on Acala parachain as LDOT tokens and even use them to mint aUSD, Acala’s native stablecoin. DOT tokens can be deployed on DEXs, lending and borrowing platforms
$100 million USD worth of 6.5 million DOT will be unstaked from the network next month for enhancing its parachains. With the integration of new Moonbeam bridges with Wanchain, a layer-1 PoS blockchain, Polkadot will now be able to establish an interoperable connection with other DeFi cross-chains.
Read more: https://thenewscrypto.com/polkadots-xcm-introduces-new-use-cases-for-dot/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
