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What is Moonbeam?Moonbeam is a blockchain platform that aims to provide a seamless bridge between different ecosystems in the decentralized finance (DeFi) space. Built on the Polkadot network, and being fully compatible with the Ethereum Virtual Machine (EVM), Moonbeam enables developers to build and deploy decentralized applications (dApps) in a way that is interoperable with other blockchains. Its design allows it to support a wide range of use cases, including stablecoins, lending and borrowing, and tokenization.HistoryMoonbeam was founded in 2020 by the team at PureStake, a company that provides infrastructure services for blockchain networks. Its native token is Glimmer (GLMR), which is used for governance and transaction fees on the Moonbeam network. Moonbeam was launched with the goal of making it easier for developers to create dApps that are interoperable with other blockchains, and it was designed to be fully compatible with the Ethereum Virtual Machine (EVM). Moonbeam has a unique tokenomics model that uses a staking mechanism to incentivize participation and provide security for the network. Validators on the network can stake GLMR tokens to participate in block production, and they are rewarded with transaction fees and newly minted GLMR tokens.Moonbeam’s TechnologyMoonbeam is built on the Polkadot network, which uses a unique consensus mechanism called nominated proof-of-stake (NPoS). This consensus mechanism is designed to provide fast and secure transaction processing, while also allowing for a high degree of scalability.In simple terms, validators are elected by token holders to produce blocks and secure the network, and they are incentivized to act honestly through a system of rewards and penalties.In addition to the Polkadot network, Moonbeam uses a technology stack that includes the Substrate framework, which provides a modular architecture for building blockchain applications, and the Parity Ethereum client, which enables EVM compatibility.Moonbeam’s technology stack is designed to be developer-friendly and flexible, making it easy for developers to build and deploy dApps on the platform.Polkadot InteroperabilityMoonbeam’s integration with the Polkadot ecosystem brings several benefits that enable interoperability with other blockchains. First, Polkadot’s cross-chain messaging protocol (XCMP) is poised to allow Moonbeam to communicate with other parachains on the Polkadot network and exchange assets and data. This means that Moonbeam can easily interact with other blockchains that are also connected to Polkadot.Additionally, by being part of the Polkadot ecosystem, Polkadot’s shared security model allows Moonbeam to benefit from the security provided by the Polkadot network, which is one of the most secure and scalable blockchain networks in the industry. This means that Moonbeam is able to provide a high level of security for its users, without having to rely on its own security infrastructure. Finally, as part of the Polkadot ecosystem, Moonbeam can take advantage of the network effects and community of developers and users that are already building on Polkadot.Ethereum InteroperabilityThe Ethereum Virtual Machine (EVM) is a software environment implemented as part of the Ethereum blockchain, which executes smart contract code. It acts as a runtime environment for smart contracts in Ethereum, allowing them to be executed on any network node and ensuring the consistency of the state of the blockchain.Because the Moonbeam chain is compatible with the Ethereum Virtual Machine (EVM), this means that DApps on Moonbeam can easily be interacted with using an EVM-compatible wallet such as Metamask. This also means that developers from Ethereum and EVM-chains can quickly port their DApps over to Moonbeam with minimal modification.The GLMR TokenGLMR is the native utility token of the Moonbeam network, which is a smart contract platform that aims to provide Ethereum-compatible functionality to developers building decentralized applications. GLMR is used to pay for transaction fees, as well as for staking and governance on the network.The supply of GLMR is uncapped, with approximately 576,345,576 currently in circulation. Despite the apparently inflationary tokenomics, GLMR does feature a ‘burn’ mechanism that increases the degree of deflation in proportion to the gas fees paid per transaction. Each time GLMR is used to pay for transaction fees on smart contracts, 80% of those specific tokens are destroyed through “burning”.The token was initially distributed through a private and public sale, with a portion reserved for ecosystem growth and development.As of February 2023, according to CoinMarketCap, the token is currently valued at $0.43, with the market cap being approximately $245 million, with a fully diluted market cap of over $442 million.Moonbeam EcosystemThere are approximately 40 apps that exist in the Moonbeam ecosystem, which includes some well-known ones like Moonwell Artemis and StellaSwap.As for the total value locked (TVL), it currently stands at over $87.34m as of 14 February 2023, with native lending protocol Moonwell Artemis making up over 50% of the share of TVL on Moonbeam.Moonwell ArtemisMoonwell Artemis is the largest lending and borrowing protocol on Moonbeam, analogous to DApps such as Aave or Compound on Ethereum. It is part of the wider Moonwell project, which features an open lending, borrowing, and decentralized finance protocol built on not only Moonbeam, but also Moonriver.StellaSwapStellaSwap is the largest decentralized exchange (DEX) on Moonbeam. It features an integrated platform allowing users to perform a range of actions such as swapping, yield farming, earning, bridging assets, exploring new projects, and NFT trading. StellaSwap’s offerings are designed to enable decentralized governance for $STELLA native token holders.TrustWalletTrust Wallet is a popular mobile cryptocurrency wallet that allows users to securely store, manage, and exchange a wide range of digital assets. Backed by Binance, one of the largest cryptocurrency exchanges, Trust Wallet is designed to provide users with a simple and intuitive interface. The wallet supports a large number of cryptocurrencies, and features custom EVM network support, therefore including support for Moonbeam.MathWalletAnother popular wallet is MathWallet. MathWallet is a mobile app-based wallet that supports all EVM compatible chains, making this a good option if you are yield farming across multiple Ethereum-based chains. Likewise, MathWallet fully supports interactions with the Moonbeam chain.MathWallet offers mobile apps for both iOS and Android, and also features a browser extension option if you’d like to manage your positions on desktop.MetaMaskMetamask needs no introduction: it is a popular browser extension and mobile wallet that allows users to interact with decentralized applications (dApps) built on the Ethereum network and EVM-compatible chains. The extension integrates with most dApps and provides a seamless, secure, and convenient way for users to access and use decentralized services.Because Moonbeam is compatible with EVM, you are also able to use MetaMask to interact with DApps on Moonbeam.Staking on MoonbeamYou can delegate your Moonbeam tokens to collators to earn staking rewards. The following steps can be taken in order to stake your Moonbeam GLMR tokens.Connect your account to the Moonbeam dApp and accept permissions.Switch your MetaMask network to Moonbeam. The dApp will prompt you to do so.Change the network to Moonbeam and go to the main dashboard to view account details.Delegate a collator candidate by clicking on ‘delegate’. You will then arrive at the Staking page.5. Then, choose the amount of tokens you would like to stake.6. Collators will share rewards received from producing blocks amongst all their delegators.7. Your reward will be based on the amount you contributed compared to the total amount bonded to the collator.8. For more information on reward distribution, check out Moonbeam’s documentation on staking reward distribution.Yield Farming on MoonbeamThe ecosystem for Moonbeam is still relatively young. Nevertheless, you can yield farm on Moonbeam using StellaSwap, Moonbeam’s highest-TVL DEX, along with Moonwell Artemis, the largest lending protocol on Moonbeam. In this first part, we will use StellaSwap as an example to discuss how you can yield farm on Moonbeam. As of Mid February 2023, the top farms are paying out the following yields:The process of swapping and adding liquidity is mostly similar to that on Ethereum-based DEXes, so if you are already familiar with yield farming on EVM-compatible ecosystems, you will feel right at home.To use Moonbeam, you will first need to purchase some $GLMR tokens. This can be done easily on a range of centralized exchanges, such as Kucoin. Withdraw the tokens directly to your MetaMask address.2. Next, navigate over to the StellaSwap interface and connect your Metamask.Follow the automatic prompt to switch the network to Moonbeam. Then, head over to the ‘Swap’ page.3. Swap half of your GLMR tokens for the other coin you want to farm with. For example, USDC.Then, head over to the Pool page by clicking on ‘Earn’, and selecting ‘Pool’.4. Choose tokens you’d like to add Liquidity for. In this case, we have chosen GLMR and USDC:5. Click add liquidity. Once the transaction has gone through, head over to the Farms tab and scroll to the GLMR/USDC Farm. Click through, and you should now be able to deposit your LP tokens and start earning rewards!If you would prefer to lend your tokens for yield, you always have the option of Moonwell Artemis. The process is considerably simpler than for StellaSwap. All you need to do is the following:Head over to Moonwell Artemis and Connect your MetaMask, ensuring that the Moonbeam network is selected.2. Next, you should be able to choose a token to either supply or borrow from the carousel interface above.3. In the final step, simply supply the token of your choice — in this case, GLMR — at the bottom left hand corner of the page above. Once you deposit your tokens, you will be earning the Supply APY.Should You Use Moonbeam?Moonbeam is a powerful platform that brings the full capabilities of the Ethereum ecosystem to the Polkadot network, enabling seamless cross-chain functionality. The Moonbeam network is therefore well-positioned since it is one of the first in the Polkadot ecosystem to promote blockchain interoperability with Ethereum-based DApps. Moreover, users could benefit greatly from relatively high yields on various DApps.Right now we are GIVING AWAY free copies of Security Bibles — the most comprehensive DeFi Security Guide brought to you by the De.Fi Team!

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All Cryptos Insider © 2024. All rights reserved.