Curve Finance gathers a good 16 billion US dollars of DeFi liquidity for Ethereum (ETH) alone. Capital can now also conveniently move between ETH and DOT via Polkadot’s parachain Moonbeam and Curve Finance.
In the DeFi division, it has become apparent to investors and crypto projects that it is important to actually connect incompatible blockchains and their cryptocurrencies. Curve Finance has proven to be particularly progressive in this regard, with interfaces already created for eight different blockchains. The reward for this flexibility is market leadership for Curve Finance in terms of deposited capital; according to data from DefiLlama, it is currently just under 20 billion US dollars, and capital for Ethereum makes up the majority of the pie with just under 17 billion US dollars. Now Curve Finance reports via Twitter to have docked with Moonbeam as well. Moonbeam is a so-called parachain of Polkadot (DOT) – and this constellation is the real breakthrough.
Because until now, neither Moonbeam nor Polkadot itself were elegantly linked to Ethereum (ETH) in any way. This is changing with the bridge presented by Curve Finance. Through Moonbeam and Curve Finance, DeFi deals can now also be transacted with ETH, whose smart contracts and transaction fees are organized under Polkadot, where the Ethereum Virtual Machine (EVM) is also integrated. Thus, users benefit from the low fees at Moonbeam/Polkadot, reliability of Curve Finance, and market penetration of Ethereum at DeFi.
It is also worth remembering that Curve Finance differs from competitors such as Uniswap in one important aspect of its content: Curve Finance limits its liquidity pools to matching similar cryptocurrencies, such as only stablecoins. This minimizes risk of loss, and this feature has been instrumental in Curve Finance’s popularity.
Conclusion: Curve Finance and Moonbeam – dream team for Polkadot.
Moonbeam has been live on Polkadot since January 11, 2022 and is taking a big step forward with the connectivity to third-party blockchains enabled by Curve Finance. Accordingly, Moonbeam is also celebrating the development via Twitter, highlighting the ability to now offer high-demand DeFi functionality seamlessly and easily between different ecosystems. This could be where Polkadot starts to score points with its concept of parachains among the so-called “Ethereum killers”. After all, as mentioned at the beginning, DeFi capital likes to migrate and is now getting a demonstration of how this can work practically between Polkadot and Ethereum.
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