XCM Comes to AstridDAO
AstridDAO will follow the latest development of Polkadot XCM to make the free exchange of assets between parachains possible.
What is XCM?
XCM is short for Cross-Consensus Message Format, it is a general way for consensus systems to communicate with each other.
Though, before XCM, there were several kinds of consensus systems, all of them have their format of transmitting messages and cannot communicate with each other.
The goal for XCM is to connect all of them in Web3. Different chains may have their own ‘dialects’, but XCM can be the ‘mother tongue’ that is understandable on all chains.
What can it bring to AstridDAO**?**
First, with XCM being applied, BAI, the stablecoin in Polkadot, can flow freely to other parachains and will have more use cases, such as the payment method in more Metaverses.
Besides, DOT, GLMR, and other collaterals can be deposited in AstridDAO to borrow BAI, which means you can use BAI to leverage the value of more risky assets without selling them.
Likewise, BAI can be using in other parachains as a means of value storage to fight against the high volatility of cryptos. You can also add BAI to more liquidity pools to earn more rewards.
In the future, with the development of XCM, there is more for us to expect in Web3. We are working closely with Astar and other parachain teams to make BAI cross-chain compatible via XCM now. Please stay tuned and wait for our exciting news.
About AstridDAO
AstridDAO is a decentralized money market protocol and multi-collateral stablecoin built on Astar and the Polkadot ecosystem, allowing you to borrow $BAI, a stablecoin hard-pegged to USD against risk assets at 0% interest and minimum collateral ratio. This mechanism enables you to leverage the value in your risk assets, including $ASTR, $BTC, $ETH, and $DOT, without selling them.
SOURCE:
https://medium.com/@astrid_dao/xcm-cross-chain-compatibility-is-coming-to-astriddao-a66bb754b852
