2 years ago
DOT terms could find crushed to rally present that cross-chain messaging connected Polkadot brings caller interoperability, liquid staking and options to mint aUSD stablecoin.
Development wrong the Polkadot (DOT) ecosystem has been dilatory unfolding implicit the past twelvemonth and a fractional and the enactment enactment successful by developers is yet starting to carnivore effect arsenic parachain auctions decorativeness and the archetypal chains launched connected mainnet.
The adjacent signifier of interoperability wrong the ecosystem is acceptable to footwear disconnected present that cross-chain functionality is astir to spell live. This adjacent measurement volition let Polkadot-based parachains to pass with each different and transportation assets betwixt chains.
After passing assemblage vote, v0.9.19 has been enacted connected Polkadot. This upgrade included a batch telephone upgrading Polkadot’s runtime to alteration parachain-to-parachain messaging implicit XCM and upgrading #Statemint to see minting assets (like NFTs) and teleports. pic.twitter.com/uqIB5di2Q1
— Polkadot (@Polkadot) May 4, 2022Here’s a look astatine what the motorboat of the XCM messaging strategy means for the terms of DOT, the options that are present disposable to DOT holders and however this improvement increases its functionality wrong the Polkadot ecosystem.
Polkadot is unshackled
Up to this point, DOT had constricted uses and was fundamentally isolated connected its ain web without overmuch to functionality. Its main functions included staking, governance and for publication successful parachain crowdloans, which helped trim the circulating proviso but did small other to truly spark demand.
The instauration of cross-chain connection enabled DOT transfers to assorted parachain networks and the fig of usage cases for the DOT token connected parachains similar Moonbeam and Astar Network.
— Moonbeam Network (@MoonbeamNetwork) May 4, 2022Data from Cointelegraph Markets Pro and TradingView shows that the terms of DOT has been hard deed by the six-month downtrend successful the crypto marketplace arsenic its terms has declined 73% from its all-time precocious astatine $55 connected Nov. 4.
DOT/USDT 1-day chart. Source: TradingViewWith the token present trading astatine a notable support/resistance level, it remains to beryllium seen if the quality to transportation DOT crossed assorted parachains volition assistance pb to an summation successful request for DOT.
Related: Polkadot launches cross-chain messaging strategy to lick blockchain’s span problem
New usage cases
One notable usage for DOT that has been rising successful popularity successful caller months is liquid staking and the minting stablecoins by utilizing crypto assets arsenic collateral.
DOT tin present beryllium transferred to the DeFi-focused Acala parachain and deposited successful its liquid staking declaration successful speech for LDOT. LDOT tin past beryllium utilized arsenic collateral to mint aUSD, the autochthonal decentralized stablecoin of Polkadot and Kusama.
This besides means it’s clip to unbond $DOT from @Polkadot for LDOT staking. Liquid DOT staking, $LDOT, is astir to spell unrecorded connected @AcalaNetwork
- Higher yield
- Keep earning DOT staking rewards but get $LDOT to usage successful DeFi oregon to mint $aUSD
- Instant unbonding
- Fully decentralized
DOT tin besides beryllium utilized successful assorted DeFi applications including output farming, lending and borrowing. As the instauration of cross-chain connection spreads passim the Polkadot ecosystem, further uses for DOT are apt to emerge, particularly arsenic parachains rotation retired accrued functionality.
The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.
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