Moonbeam’s GMP pre-compilation serves as an interface to MRL and facilitates the transmission of messages with tokens from the GMP protocol (via XCMP) to parachains linked to Moonbeam.
Why is this big news? Because this technology makes it possible to transfer liquidity from external blockchains to other Polkadot parachains!
Here is some additional background:
Moonbeam Routed Liquidity (MRL) refers to the use case of Moonbeam as a port parachain to bring external chain liquidity to other Polkadot parachains.
Since other Polkadot parachains use Substrate and do not have EVM, they cannot easily introduce external liquidity into the ecosystem. Moonbeam routed liquidity is a way for these parachains to leverage bridging liquidity by using native interoperability components within Polkadot.
Because messages with arbitrary data and tokens in General Messaging (GMP) can be sent across blockchains that are not parallel chains (through the GMP protocol that is compatible with any chain). These GMP protocols can be combined with Polkadot’s XCM system to enable seamless liquidity routing.
Currently, GMP precompilation is specific to Wormhole, but changes could be made in the future to accommodate other cross-chain interoperability providers.
For more information, please read the announcement: Moonbeam Unlocks Billions of Liquid Assets in Wormhole: Solving the Fragmentation Problem of Polkadot Ecosystem