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The Moonbeam Polkadot smart contract platform will facilitate the integration between Injective and Polkadot. This will allow to easily swap assets between Injective and Polkadot and offer more decentralized trading tools.
On Sunday, October 18, Injective announced its integration with blockchain protocol Polkadot to expand its decentralized cross-chain trading capabilities. Injective said that it will leverage Polkadot’s shared multi-chain network.
This Polkadot framework allows processing multiple-transactions on several chains running in parallel. All the shared chains connected to the Polkachain network are called “Parachains”. The latest integration between Injective and Polkadot is facilitated by Moonbeam. This is a new Polkadot smart contract that makes it easy for developers to build interoperable blockchain applications.
Thus, Moonbeam will help to bring Injective’s DEX derivatives to Polkadot. Before this integration, transferring tokens between Injective Chain and Polkadot was a long road. Previously, it would require a withdrawal request back to Polkadot. Later, one had to initiate a transfer to Polkadot using an Ethereum to Polkadot bridge. The entire process was quite tedious and cumbersome.
The latest integration by Moonbeam and its tech-stack support has made things easy. Thus, Injective will now create a bridge to easily swap assets between its platform and Polkadot. This will also new opportunities for getting Injective’s staking derivatives to the Polkadot platform.
Besides, developers can also build new derivatives on Injective that can leverage the Polkadot tokens, as well as other tokens launched atop the Polkadot “parachain”.
Unlocking New Opportunities for Cross-Chain Derivatives DEX
Injective calls itself as the “first layer-2 decentralized exchange protocol” offering borderless DeFi and decentralized derivatives trading. The Injective Protocol lets users trade on any derivative market in an absolute decentralized manner without any restrictions.
Injective has backing from big players of the industry like the Binance crypto exchange. Besides, venture capital giants like Pantera Capital are also supporting Injective. Speaking on the latest collaboration with Polkadot, Injective CEO Eric Chen said:
“As a platform for open derivatives market creation, we’re confident that our community-driven markets will benefit from accessing tokens and on-chain data from the Polkadot ecosystem. More interestingly, we can also create synthetic tokens on futures positions and transfer them to the Polkadot DeFi ecosystem while also enabling NFTs to be traded.”
On the other hand, Polkadot is slowing getting popular among blockchain application developers. In the month ending May 2020, the monthly active developers on Polkadot jumped by a whopping 44%, says a Bloomberg report. At the same time, the active developers on Bitcoin and Ethereum are dropping.
Polkadot hosts a wide range of projects from stablecoins to social networks. Polkadot founder Gavin Wood said:
“We are going to see a lot of different innovative products that can’t exist in a smart contract environment. Game blockchains, ensuring gamers don’t cheat. Blockchains within consortia. They are difficult to deploy in a smart contract environment.”
Recently, Polkadot also announced its new project dubbed Initial Parachain Offering (IPO) for funding new projects in the market. For its IPO, Polkadot will use its unique Parachain architecture with native DOT tokens.