They say the future is interoperable – where everything is connected. This could be true, and the next project we want to look at here is the one that will help make that happen.
Today we are dealing with Milkomeda and everything that goes with it. Read on to see what this project brings to the table!
Watch our video – Everything you NEED to know about Milkomeda
Milkomeda is an L2 protocol that aims to connect multiple leading blockchains while offering an alternative solution for scaling them. By leading blockchains we mean Cardano, Solana and Algorand for now.
As you can see, the project focuses on non-EVM projects and aims to bring them to mass adoption by offering EVM-based sidechains.
How does it work?
The Milkomeda sidechain enables collaboration by creating sidechains that connect to respective L1 chains. However, they will use their cryptocurrency as an underlying asset and in this way draw more attention to the project and the token itself.
Regarding DApps, developers can deploy a smart contract on the sidechain from the connected virtual machine or from the blockchain. This smart contract is made available to the L1 chain users who can interact with it on the sidechain.
Take the Cardano blockchain for example – Milcomeda is already connected to it. This means that Cardano users can seamlessly use smart contracts based on other chains and written in programming languages other than Plutus.
The Milkomeda protocol offers multiple sidechains that allow developers to write smart contracts in the languages they are familiar with, such as Solidity, and deploy them on multiple chains. This means they don’t need to learn Haskel and Plutus to build on Cardano, lowering the developer entry barrier and increasing their numbers on Cardano. This is how MIlkeda fuels the growth of the L1 network – in this case, Cardano.
Milkomeda offers non-EVM ecosystems the ability to inherit key elements such as rollups and solidity support from EVM-based ecosystems.
In terms of security, code deployed in multiple chains has the same security properties, eliminating the need to perform individual audits per chain.
“The Milkomeda protocol offers numerous advantages to non-EVM-based blockchains and is aimed at everyone from end users to developers. Integration into new ecosystems benefits the L1 blockchain’s native currency as it gains utility as the sidechain’s underlying asset. Users have the opportunity to try out dApps written in a previously unsupported smart contract language, deployed on a sidechain and coordinated directly from the mainchain via wrapped smart contracts.” — states the team in its official documents.
The company is called dcSpark, and it creates products and solutions for cryptographic projects. Aside from Milkomeda, they are working on other projects like Flint (A multichain Web3 wallet) and Urbit Visor/UV Ecosystem (which allows turning your web browser into a top-notch Urbit client).
If you want to know more about the company, please visit theirs website.
scalability: Milkomeda can scale to hundreds of transactions per second without sacrificing long-term decentralization.
Security: Our goal is to leverage the power of rollups across all chains, with audits at key points in the roadman to ensure the security of the protocol.
User experience: We work with wallets to ensure transferring assets to Milkomeda is a breeze.
interoperability: Solidity (EVM) will be first, followed by Cairo and others.
portability: Code once, deploy anywhere without sacrificing security.
Developer Experience: Developers can access all Ethereum tools and resources directly.
Regarding Cardano’s sidechain, dubbed Milkomeda C1, also affectionately referred to as “Milkodano”, it is governed by its users on Cardano through the Milkomeda DAO.
To participate, users must use the Cardano blockchain and will be encouraged to vote with rewards.
Aspects managed by the DAO include:
- Add or remove validators
- Introducing new sidechains
- Reduction or increase in required collateral amounts
- Punish malicious validators
- Spending treasury funds to fund the growth of existing sidechain ecosystems
- Decide which stakeholders the packaged ADA will be delegated to
- Accepting tokens in the sidechain (by adding to the sidechain token registry)
- Review and acceptance of new concluded contracts (after the developer audit)
Milkomeda does not have a native token. On Cardano’s sidechain is MilkADA, which is used to pay fees for using the sidechain.
MilkADA is the base asset of the Milkomeda C1 side chain. When you move ADA to Milkomeda, you get MilkADA.
Besides MilkADA, there is another token called “Wrapped ADA” or WADA. Wrapped ADA is an ERC20 token that works the same as WETH on Ethereum.
Apart from that, there is a list of other tokens that operate on the chain.
Milkomeda actively encourages new projects to be built on top of its C1 chain, for example through its DAO hackathon!
https://twitter.com/Milkomeda_com/status/1563204333021253633
Aside from the DAO hackathon, Milkomeda also offers a crazy blockchain game funding program that offers $15,000.
https://twitter.com/Milkomeda_com/status/1558091260769972226
Currently, the TVL of the project is $9,872,934 (as of 08/29/2022).
Since it’s all about interoperation and collaboration, it would be strange if Milkomeda didn’t work with other protocols.
For example in cooperation with API3: API3 will make the API3 Alliance, the largest selection of data providers in Web 3.0, available for dapp developers on Milkomeda.
Also with Symbiosis: Symbiosis has created a bridge between its native token SIS and milkADA (mADA) to enable any-to-any swaps from Ether (ETH) to mADA and back. The SIS mADA pool is located on OccamX: app.occam-x.fi/pool.
Some projects are collaborating with Milkomeda for sidechain integration with the Cardano blockchain. One of them is Paribus, a cross-chain borrowing and lending protocol for NFTs.
Medium: 800
Twitter: 42.9K
Discord: 8.6K
Since there is no native token in Milkomeda, in this section we will go over which wallets you need to use to run the C1 sidechain.
First of all, you need a Cardano wallet with some ADA on it. Flint for example.
Flint Wallet is a Chrome extension that serves as a handy lightweight wallet for DeFi and NFTs. The current version of Flint allows users to enable “Milkomeda mode” to send transactions to the Milkomeda C1 sidechain. Install Flint Wallet by visiting the following link while using the Chrome browser and clicking the Add to Chrome button: Install Flint Wallet.
The next step is to get an address on the Milkomeda C1 sidechain where we can get our MilkADA. For now, we recommend using MetaMask for this step. To add the chain to Metamask, follow the next steps:
Select the Network dropdown at the top right of the MetaMask screen.
Select “Add Network” from the drop-down list and enter the following:
network name: Milcomeda Cardano (C1)
New RPC URL: https://rpc-mainnet-cardano-evm.c1.milkomeda.com;
Chain ID: 2001
Currency symbol (optional): PROPERTY
Block explorer URL (optional): https://explorer-mainnet-cardano-evm.c1.milkomeda.com
There is a native Cardano unwrap bridge that you can use to push MilkADA back to the Cardano mainnet.
There is also a bridge explorer where you can easily find all pack/unpack stats, TVL, average pack time, etc.
The good news is that Milkomeda is already integrated into the DEFIYIELD dashboard!
Track your wins and losses, balances, prices and much more with DEFIYIELD! Our improved dashboard offers the richest user experience, so visit our app and connect your wallet now to get started — https://defiyield.app/
what’s more We had the Biggest Cardano Twitter Space on August 31st where people had a chance to join a discussion with Milkomeda, MuesliSwap, SundaeSwap, MlnSwap, Mend, and VyFinance.
If you missed it, you can listen to the space here 👇 https://twitter.com/i/spaces/1LyxBoXyjlPKN
You can yield C1 on Milkomeda with a number of yield farms such as OccamX and MilkySwap yield farms. In the example shown below, let’s look at how you can farm on OccamX. In this case, we assume that you have already passed on your assets to Milkomeda C1.
- Go to OccamX and connect to the Milkomeda C1 Chain.
- As can be seen in the picture below, there is a wide range of farms to choose from. Browse the list and select your asset pair.
3. Obtain the assets you want to farm with using the Trade tab as shown below.
4. Once you have your required tokens, go to the Pool tab to add your liquidity. In this example, we get some mADA/multiUSDC liquidity pool tokens.
5. Finally, you can click on the farm of your choice and use your LP tokens on the farm. You are now ready to make returns!
6. For OccamX, note that rewards can only be claimed once the locked milestone for total value has been reached. As of September 2022, this was set at $250 million.
7. If you want to claim your rewards instantly, consider using MilkySwap instead. The process is exactly the same as in OccamX.
If you are interested in Cardano and want to earn some yield in the meantime, Milkomeda Yield Farming seems like a great game. As you can see from the above two farms, most farming pairs include WADA as one of the tokens, meaning that by default you would invest in ADA by investing in these pools.
The added bonus is that gas fees are low while transaction speeds are high, making Milkomeda a great place to start yield farming if you have a smaller portfolio.
Milkomeda is a project that is gaining popularity very quickly, and understandably so. Their project brings benefits to developers who can create dApps in their preferred language, as well as users who can now try dApps that were previously unsupported. The potential is there and the general public seems to have high hopes for the project.
However, as always, this is not investment advice and you should always do your own research first.
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Good luck in farming!
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