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DOT.Finance Moves to Polkadot to Introduce First DeFi Aggregator
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DOT.Finance Moves to Polkadot to Introduce First DeFi Aggregator

The continuous advancement of blockchain technology, paired with the expanding dominance of cryptocurrencies, led to the emergence of decentralized finance (DeFi). This, in turn, has led to the emergence of novel financial solutions like staking and yield farming, enabling investors to generate passive income by putting their existing digital assets to work.

However, DeFi isn’t everyone’s cup of tea. Not only is the DeFi ecosystem highly fragmented, but finding the right combination of yield strategies can require challenging navigation. This is where DeFi aggregators come to the rescue. By accumulating data from multiple DEXs (decentralized exchanges), a DeFi DEX Aggregator offers various yield farming strategies that help users to maximize their returns while avoiding high gas costs and trade commissions.

DOT.Finance is one such DeFi aggregator that provides users access to a wide range of vetted, high-performing strategies. It is built to lower DeFi’s entry barriers by automating yield farming and is currently deployed on Binance Smart Chain (BSC). Originally designed to incentivize the growth of the burgeoning Polkadot ecosystem, the recent launch of the Moonriver and Moonbeam projects has helped DOT.Finance move forward with its original plan of introducing the first DeFi aggregator on Polkadot.

Automated Yield Farming Comes to Polkadot

As interest in the Polkadot ecosystem continues to accelerate, the DOT.Finance platform is migrating to the Moonbeam parachain after integrating with Moonriver, Moonbeam’s canary network deployed on Polkadot’s Kusama canary network. The migration from BSC to Polkadot will be a multi-step process, wherein the first phase involves restructuring all existing DOT.Finance yield aggregation contracts for the Moonriver network. 

Initially, the yield farming strategies will focus on Solarbeam pools within the Moonriver ecosystem, with support for the Solar (SOLAR), USDC, Moonriver (MOVR), Ether (ETH), Wrapped BTC (wBTC), and DAI trading pairs. As part of this migration, DOT. Finance has partnered with DIA to ensure that all its vaults use secure oracles to prevent attempts to manipulate price feeds. 

DOT.Finance has also collaborated with cross-chain swap protocol Anyswap to enable seamless transfer of its PINK tokens from Binance Smart Chain (BSC) to Moonriver. Furthermore, the DeFi aggregator will also roll out new staking pools for PINK on Moonriver to attract existing token holders to migrate and earn additional rewards.

The migration from BSC to Polkadot will play a critical role for DOT.Finance as it continues to expand its offerings. Compared to legacy networks, DeFi is still in its relative infancy on the Polkadot network, granting DOT.Finance a strategic advantage for being the first DeFi aggregator on Polkadot.

At the same time, Polkadot connects multiple individual blockchains into a unified network while offering fast transaction speeds and exceptionally affordable gas costs. With the proposed migration, DOT.Finance will combine its robust DeFi solutions with Polkadot’s next-generation blockchain architecture, opening the door to decentralized financial innovations even wider for investors and traders.

Disclosure: At the time of publication, Reuben Jackson did not have a position in any of the securities mentioned in this article.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates  Read full disclaimer >

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