- By improving Stellar and Polkadot compatibility, the Spacewalk Bridge makes it possible for stablecoins and XLM to be transferred between networks with ease.
- A security cap, increased DeFi chances, and liquidity provision inside the DotSama ecosystem are all part of the bridge’s staggered introduction.
The public launch of the Spacewalk bridge on the Pendulum network is a big deal for the blockchain industry. It will simplify Stellar-Polkadot integration. Almost a year after we announced the concept in ETHNews previous report, this initiative promotes DeFi cooperation between the two vibrant communities.
Unlock greater liquidity with Spacewalk Bridge 🪐🔁⚪️
The trust-minimized bridge from @pendulum_chain unites @StellarOrg's fiat-anchored currencies with the expansive DeFi capabilities of Polkadot 💫 pic.twitter.com/Qb9jiuiGwF
— Polkadot (@Polkadot) March 28, 2024
Connecting Polkadot and Stellar
By providing a trust-minimized channel between Polkadot and Stellar, Spacewalk makes it easier to move other cryptocurrencies, including fiat-backed stablecoins. In order to combine Polkadot’s strong DeFi capabilities with Stellar’s fiat-tethered currencies, this integration is an essential first step.
Spacewalk can now be used to move stablecoins like EURC, AUDD, NGNC, TZS, and BRL, as well as Stellar’s native token, XLM, between various networks. To further integrate these ecosystems, Pendulum’s native token, PEN, is designated as the currency for the transaction fee.
The Spacewalk Bridge was first unveiled on Amplitude, Pendulum’s sibling chain on Kusama. Its activation on the Pendulum Polkadot chain marks the chain’s official public debut. The rollout is staggered, with a volume cap on transferable assets as the first step to ensure security.
This cap is anticipated to rise gradually as part of the project’s extensive security procedure, permitting higher volumes of asset transfers.
DeFi Expansion on Stellar: Obtaining Access to Zenlink DEX and Liquidity Pools
Users of Stellar can now effectively move XLM tokens to Polkadot’s Zenlink DEX by using the Spacewalk Bridge. This makes it possible for holders of XLM to reward themselves and provide liquidity to different XLM pools.
Also, the integration extends to Amplitude chain’s liquidity pools on Kusama, such as KSM/XLM.s and AMPE/XLM.s, and not just makes it easier for XLM to participate in liquidity pools like XLM.s/PEN and XLM.s/DOT on Pendulum’s Zenlink DEX. Future comprehensive instructions should make it easier for people to provide liquidity and swap.
This calculated action solidifies Stellar’s place in the DotSama ecosystem while also enhancing its DeFi participation through trading and liquidity provision. Because of its built-in cross-chain flexibility, XLM may now participate in more DeFi activities, including as staking and governance, which will increase the DeFi opportunities for the Stellar community.
Forex DEX: Revolutionizing with Nabla Technology
The importance of on-chain Forex trading, as emphasized in a January 2023 research paper by Uniswap and Circle, is the basis of this integration.
With its cutting-edge Nabla technology, Pendulum’s FX DEX is the first functioning dApp in the Pendulum ecosystem, providing smooth single-sided liquidity provision and allaying worries about transient loss.
Finally, the launch of the Spacewalk bridge signals the beginning of a new phase of Stellar and Polkadot interoperability, which holds the potential to broaden the scope of DeFi innovation and cooperation. For further details on this development, you can see the YouTube video below.