xcDOT is an XC-20 token compatible with the ERC-20 standards and ready for active use on Moonbeam. As an XC-20, xcDOT is now compatible with the ERC-20 standards in active use on Moonbeam, allowing existing DOT holders to deposit their tokens on Moonbeam through the DApp and actively use them in things like decentralized exchanges, liquid staking protocols, and lending and borrowing applications for the first time. This update was made possible following the rollout of XCM on Polkadot, introducing cross-chain capabilities for the first time for all parachains.

In addition to the utility options available on the Relay Chain like staking, governance, and bonding for parachain crowdloans, DOT tokens holders can now benefit from the extensive DeFi options on Moonbeam. As Polkadot gradually rolled out functionality, DOT holders have had limited choice of how they can use and stake their tokens. The implementation of xcDOT will allow users to move their DOT quickly and simply, and use it on a growing number of DApps. xcDOT gives Polkadot supporters more ways to enjoy the EVM-based ecosystem that is flourishing on Moonbeam.