DAM Finance deploys its shared liquidity layer on Ethereum and Moonbeam
DAM Finance has deployed its global shared liquidity infrastructure on Ethereum, the world’s most active smart contracting platform, and Moonbeam, a Polkadot parachain.
DAM Finance launches on Ethereum and Moonbeam
In a press release on February 6, DAM Finance said the launch marks an important milestone in their roadmap. Notably, the deployment features the first of what the protocol said will be a series of multi-network dApps. They added that the objective would be to enhance value mobility in an inherently fragmented digital asset sphere. Presently, 80% of web3 liquidity is on Ethereum. However, DAM Finance firmly believes that the future is multi-chain.
Following this mainnet launch deployment on Ethereum and Moonbeam, it would be easy for users to move liquidity across the two platforms. By extension, liquidity can quickly flow between Ethereum’s dApps in DeFi or other hybrid systems like GameFi dApps to the broader Polkadot’s ecosystem through Moonbeam. Being a parachain, Moonbeam is connected to Polkadot’s other parachains through the Relay Chain.
The move is a positive development that could boost liquidity and enhance interoperability. With better collaboration and fluidity in liquidity, Harrison Comfort, the co-founder of DAM Finance, said it would accelerate innovation. The platform provides a “scalable liquidity ramp” for its partners.
DAM is helping accelerate innovation in the digital assets space by providing scalable liquidity ramps between our partners’ preferred sovereign networks. It becomes easier to build and access new solutions as we securely connect Ethereum, Polkadot, and every blockchain.Harrison Comfort, co-founder of DAM Finance
Ethereum dApps and users can now access native stablecoin liquidity on Polkadot. To do this, users must mint the d20 stablecoin on Ethereum and teleport it to the Moonbeam Network via the DAM’s decentralized dReservoir protocol. Through the dReservoir protocol, value can be “piped” to any blockchain platform without obstacles to processing speeds.
Eliminating “risky” bridges
The d20 is an omnichain stablecoin and DAM Finance’s first application that will be initially backed by USDC, a centralized stablecoin pegged to the USD and issued by Center. The stablecoin is designed to help blockchains such as Ethereum scale natively.
Specifically, the flow of value between the two platforms doesn’t rely on bridges, thereby eliminating any risks. In 2022, the BNB and Ronin bridges were hacked in events that saw hackers siphon nearly $1b of assets. These were two of the largest exploits in crypto history.
In August 2022, DAM Finance raised $1.8m in a pre-seed funding round led by Digital Finance Group (“DFG”) and Jsquare.
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