Polkadot Unlocks More Liquidity: DAM Finance Launches on Moonbeam and Ethereum

New decentralized technology by DAM finance could help mitigate Polkadot’s liquidity issues.

Man staring through a giant keyole at a Polkadot.
  • d2o stablecoin and dReservoir will allow users to safely transport liquidity between Polkadot and Ethereum. 
  • DAM’s infrastructure allows liquidity to pass between the two networks without passing through bridges. 

Polkadot Network could be one step closer to solving its liquidity issues. DAM Finance has launched its decentralized, multi-chain liquidity infrastructure Ethereum and Polkadot parachain Moonbeam. 

Thanks to DAM’s decentralized dReservoir, users will have a new way to access native stablecoin liquidity on Polkadot. Specifically, the new infrastructure will allow any user to mint d2o stablecoin on Ethereum and teleport it to the Moonbeam network. 

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This launch is an important step toward a multichain future, said DAM Co-founder Harrison Comfort. 

“Solving the liquidity issue is just the first step toward providing comprehensive, multi-chain solutions,” Comfort said. “These will span Ethereum, Polkadot, and eventually every blockchain,” he added. 

So far, liquidity fragmentation has been a significant issue for smaller blockchain networks. According to DAM, 80% of Web3 liquidity is currently on Ethereum, stifling innovation on other networks. 

The traditional way to solve this issue was using multi-chain bridges. However, bridges are notoriously susceptible to hacking. DAM’s protocol allows users to move liquidity through its stablecoin without the traditional bridge risk plaguing multichain solutions. 

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DAM provides open, decentralized infrastructure for moving value between chains at scale. Its d2o stablecoin is an omnichain stablecoin aiming to help networks like Polkadot scale liquidity. 

On the Flipside

  • AI technology could also contribute to unlocking liquidity on the DeFi protocol level. 

Why You Should Care

Liquidity is essential for crypto markets. More liquidity can mean more stable crypto prices, better investment opportunities, and lower trading costs. 

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.