Polkadot’s Moonbeam has partnered with Lido DAO to enable users to access their ether tokens locked up for use elsewhere, also known as liquid staking.
Lido integration will see Polkadot’s native cryptocurrency DOT holders stake their assets as xcDOT and receive stDOT or staked DOT tokens.
The cross-chain DOT and staked DOT tokens are XC20 standardized assets created by Moonbean for compatibility between Ethereum Virtual Machine and the Substrate protocol powering Polkadot.
Liquid staking allows cryptocurrency owners who have pledged support for the proof-of-stake consensus algorithm in Ethereum to receive a staked IOU token. The token can be invested in DeFi applications for yields.
Moonbeam was launched in January and has raised more than $1.3 billion to secure a parachain slot on Polkadot. The company’s CEO, Derek Yoo, says that the platform focuses on enhancing interoperability in the network.