Polkadot is joining the Injective ecosystem to expand decentralized cross-chain trading capabilities. This integration will be made possible by Moonbeam, which provides an Ethereum-compatible smart contract platform powered by Polkadot that makes it easy to build natively interoperable applications.
Polkadot is a sharded multichain network, meaning it can process many transactions on several chains in parallel, eliminating the bottlenecks that occur on legacy networks that process transactions one-by-one. Sharded chains connected to Polkadot are called “parachains” because they run on the network in parallel. Polkadot is a popular layer-1 chain that currently supports a number of innovative projects that are currently building on the Polkadot platform.
As a future parachain on Polkadot that supports EVM, Moonbeam allows for Injective to migrate the Ethereum pegging logic to Polkadot very easily. This opens up the opportunity to build a set of smart contracts on Moonbeam that would contain the logic to bring Injective’s DEX derivatives to Polkadot.
Prior to this integration, if users had wanted to transfer tokens between Injective Chain and Polkadot, they would have to first make a withdrawal request back to Ethereum through the implementation of an Ethereum peg zone, and then transfer to Polkadot via an Ethereum to Polkadot bridge. This would overall have been a much more cumbersome process for traders.
Ultimately, by leveraging the tech stack built by Moonbeam, Injective contributors plan to create a bridge that would enable assets from Injective and Polkadot to be transferred between one another. This opens up tremendous potential for various derivatives, such as staking derivatives, to be brought to Polkadot. In addition, it can enable a wide array of new derivatives to be built on Injective that leverage native Polkadot tokens, Moonbeam-based tokens, as well as other tokens launched on top of Polkadot parachains.
As Ethereum and Polkadot are two of the giants in the layer-1 space today, the opportunities for our cross-chain derivatives DEX are truly limitless.
Moonbeam is one of the first parachains on Polkadot to offer full Ethereum compatibility which allows Solidity developers to deploy unmodified Ethereum smart contracts on the Polkadot network. The Moonbeam team has been building rapidly and is supported by veteran tech talent with a strong track record. With the aid of Moonbeam, Injective looks to become the first layer-2 DEX to enable cross-chain capabilities across Ethereum and Polkadot.
Injective CEO Eric Chen had this to say regarding the collaboration, “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.”
This integration helps to bolster the Injective ecosystem as it nears public launch.
Injective is a lightning fast interoperable layer one blockchain optimized for building the premier Web3 finance applications. Injective provides developers with powerful plug-and-play modules for creating unmatched dApps. INJ is the native asset that powers Injective and its rapidly growing ecosystem. Injective is incubated by Binance and is backed by prominent investors such as Jump Crypto, Pantera and Mark Cuban.