Moonbeam, the leading Polkadot cross-chain interconnection development platform , announced the introduction of new features that allow the entire Polkadot ecosystem to easily access billions of dollars in liquidity through the Wormhole protocol. As of today, there is no easy way for parachains on Polkadot to acquire external assets and users without independent integration with cross-chain bridge providers. Now, through the launch of Moonbeam Routed Liquidity (MRL), HydraDX users can bring cryptocurrency liquidity from ecosystems such as Ethereum, Solana, Polygon or Avalanche without creating a Moonbeam account or directly with Moonbeam to interact.
Polkadot is known for its Layer 0 , and this method allows Polkadot to serve as a basic deployment layer for other Layer 1 networks to survive. This would bring many benefits, including shared security and native interoperability, but creates fragmentation issues as new assets are introduced into each blockchain (i.e., parachains). With the blessing of Moonbeam routing liquidity, all parachains can now connect to Moonbeam through cross-chain (XCM) to access cross-chain bridge liquidity.
Moonbeam routing liquidity is a powerful way to bring liquidity to the Polkadot ecosystem. In a recent Runtime upgrade, Generic Messaging (GMP) precompilation has been implemented, as well as other interoperability functions that have been implemented on Moonbeam. This one-click function can obtain Wormhole and other bridge assets from anywhere in the Polkadot ecosystem. . The reverse is also possible: for the first time since launch, many parachains were able to bring their native tokens to Ethereum-based exchanges.
Robinson Burkey, executive vice president and head of strategy at the Wormhole Foundation, said: "Moonbeam contributors have always been thought leaders in the cross-chain field, and have driven the growth of Polkadot's ecological applications and liquidity over the years. I am very happy to see Wormhole and Moonbeam now Routing liquidity integration, helping further growth by seamlessly transferring assets outside of Polkadot to any parachain while utilizing Wormhole’s Guardian network and XCM for messaging.”
Moonbeam can send liquidity on the Polkadot network using a combination of GMP, Polkadot’s Cross-Consensus Message (XCM) and Moonbeam’s XC-20 technology. Routing liquidity fills the gap between parachains without EVM support and remote chains that rely on third-party cross-chain bridges, opening up new possibilities for broader DeFi on Polkadot.
Alberto Viera, developer relations contributor at Moonbeam and founder of PaperMoon, said: "Moonbeam has always been committed to providing a superior user experience, and the introduction of routing fluidity is a key element in achieving this mission. The external chain in the card moves data and asset complexity. The launch of this function reflects how Moonbeam can serve the Polkadot ecosystem through teams like Wormhole as a portal for liquidity solutions."
HydraDX is the first parallel chain on Polkadot that uses Moonbeam to route liquidity, which allows users to quickly move Wormhole-based Tokens into and out of its ecosystem. Through this application, liquidity will be able to transfer from external chains such as Ethereum to HydraDX through Moonbeam, as easily as the blockchain is directly connected.
Moonbeam's new GMP precompilation enables developers on other Polkadot-based chains to connect smart contracts and transfer tokens, data, and payloads across different blockchains. This opens up new possibilities for decentralized finance (DeFi) and interoperability. Additionally, with Moonbeam routing liquidity, GMP precompilation can be used with Polkadot’s native secure messaging (XCM), enabling developers to access Moonbeam’s EVM from its main chain and unlock new features.
Moonbeam routing liquidity is very strong, all Tokens can be transferred through Moonbeam, and external assets can flow in the Polkadot ecosystem through cross-chain bridges such as Wormhole. Polkadot's native assets can be transferred to external ecosystems such as Ethereum. While Wormhole is the first provider to support MRL, other bridge providers can provide similar support through this precompilation.
Developers wishing to enable their users to access MRL from a parachain must connect to Moonbeam via XCM and initiate remote transactions. To get started, you can contact Moonbeam's development team .