[Temp Check]Deploy Moonwell on Polkadot AH

Proposals
1

Tl;dr

This proposal is a temp check to deploy Moonwell contracts on Polkadot’s AssetHub via PolkaVM. If it passes, there will be no on-chain executions.

Introduction

This proposal suggests deploying Moonwell contracts to Polkadot’s AssetHub to leverage the shared security that Polkadot’s relay chain provides. By integrating natively with Polkadot’s DOT economy, Moonwell can increase transaction volume and establish itself as a leading cross-chain DeFi platform.

Polkadot is undergoing its 2.0 upgrade, introducing a RISC-V-based Virtual Machine (VM) with EVM compatibility on its AssetHub. This upgrade presents a strategic opportunity for Moonwell, already a key player in the Substrate ecosystem, to take advantage of these improvements and expand its mission of connecting the Dotsama ecosystem with EVM and decentralised finance (DeFi).

Polkadot and Interoperability

Polkadot is recognised as one of the top Layer 0 blockchain ecosystems, boasting over 2,000 developers and a dynamic community of Layer 1 blockchains. Polkadot is built with shared values like decentralisation, censorship resistance, and open access. The Layer 0 blockchain offers parallelised computation and decentralised execution while building shared and common resources like decentralised Identities, connected blockchain execution, app-specific blockchains like DEXes, Perps, etc.

Polkadot’s unique design has enabled interoperability among app chains via the XCM inter-blockchain messaging standard. Para chains like Moonbeam and Moonriver already use XCM for connected contracts, contributing to a combined TVL of 238.75M USD.

As of Q3 2024, Polkadot has launched its trustless native bridge, connecting Polkadot’s AssetHub to Ethereum. This bridge, powered by light clients and XCM, has facilitated cross-chain communication.

Polkadot’s AssetHub and Computation as a Service for Modular Economy

Polkadot AssetHub is a purpose-built chain connected to the Polkadot relay chain, specialising in asset management within the Substrate network. Analogous to Ethereum’s Beacon Chain and execution layer, Polkadot’s Relay Chain and AssetHub function as independent chains rather than layers. AssetHub uses DOT as its native token and is bound to the governance hosted on the relay chain.

AssetHub supports the issuance and management of both fungible and non-fungible digital assets, currently hosting over 50M minted USDT and USDC. At the heart of the AssetHub is a RISC-based VM, PolkaVM, designed with enhanced security, isolation, and execution efficiency within the blockchain environment.

The PolkaVM enables permissionless contract execution and inter-blockchain communication, all within the Solidity environment familiar to EVM developers. Moonwell’s initial deployment on the Moonriver was also within the Polkadot ecosystem, aiming to leverage the familiarity of EVM and the advanced tech.

Following the full deployment of PolkaVM, Polkadot will have the necessary infrastructure to support Moonwell contracts, making this an opportune time for Moonwell to expand into this growing ecosystem.

Polkadot already has Chainlink pallets, but we can expect an updated infra with the implementation of PVM.

Motivation

Polkadot is moving away from Heterogeneous Shards, which force multichain execution, and is embracing Agail core time, where the computation isn’t forcibly shared, leading to a stateless nature.

Deploying Moonwell on Polkadot is a strategic move and promises multiple advantages. These will bring exciting and optimistic outcomes for Moonwell and the Polkadot ecosystem.

First Mover Advantage and new Target Audience.

Polkadot’s main chain ( currently doesn’t have an extensive lending and borrowing market. However, this could change with the implementation of permissionless contract deployments. This lack of permissionless deployment gives Moonwell the first mover advantage to capture the DOT economy and position itself as a leading DeFi primitive.

Expand Into DOT Economy Natively.

AssetHub is directly controlled by the DOT token holder and the OpenGov DAO. The DAO shares the mission of open access to finance and decentralisation with Moonwell. Furthermore, OpenGov periodically allocates incentive programmes to foster community growth and onboarding new users. Moonwell has grown to be the largest protocol in Moonbeam shortly after deployment.

Proposed Markets

We propose launching the following market and invite the DAO risk stewards to suggest parameters.

USDC
DOT
wETH

Voting

Yes - I support the temp check.

No

3 Likes
2

we are already live on Moonbeam and support $Dot lending/borrowing

I don’t see any benefit unless Polkadot incentivized the pools with lots of $dot, but they probably rather incentivize a new sports team before supporting ecosystem projects :face_with_spiral_eyes:

but yes let’s vote, setup a snapshot vote, think that will be fun :smirk:

2 Likes
3

Hey @0xrobinhood, thanks for the reply. Moonbeam was one of Moonwell’s biggest markets when Polkadot did not support smart contracts, and even with all the UX challenges, a good amount of xcDOT made its way into Moonwell. Deploying natively on Polkadot will help capture the 3B staked TVL of Polkadot.

Now, about the incentivization. I would say that it’s just 1 proposal away.
Polkadot OpenGov has previously allocated 1M DOT in March to Stellaswap, a moonbeam native DEX, which arguably helped reach the 1B trading volume mark.
There were also other similar allocations from Pokladot DAO.

4

idk baer…I’m pretty happy with the current path of moonwell and don’t think that the current resources are enough to deal with the polkadot community and their pretty stupid gov system… :face_with_raised_eyebrow:

and times have changed anyway, Moonwell has 200k+ users, a passionate community, a top name and standard in the entire space, actually everything that Polkadot no longer has :rofl:

if polkadot wants Moonwell they have to come to us, not the other way around…but they could have done that the last 2 years…so, just waste of time but sure let’s vote :ballot_box: :dotted_line_face:

2 Likes