Ethereum’s Layer-2 Solution, Polygon (MATIC) Welcomes Aave and Zapper to Boost DeFi Activity
As the decentralized finance ecosystem, popular as DeFi, continues to grow at a winged pace, Ethereum gas costs are surging to the roof, forcing investors to look for new faster, and cheaper blockchains. Polygon, an Ethereum layer two solutions, is emerging as the preferred solution as two major DeFi platforms – Aave and Zapper – joined the platform on Wednesday.
Decentralized lending firm, Aave AAVE 6.54% Aave / USD AAVEUSD $ 554.57
$36.276.54% Volume 1.58 b Change $36.27 Open $554.57 Circulating 12.75 m Market Cap 7.07 b 1 d Aave Is Testing Private Pools for Institutions to Ape into DeFi, Reveals CEO Stani Kulechov 3 d 1.5 Billion New DAI Minted in The Past Month, Maker Now Earning $400k per day in Revenue 1 w Layer 2 Ethereum Scaling Solution Polygon (MATIC) Sees Nearly $4B in Value Locked as QuickSwap Gains Traction , will integrate scalable sidechains with Polygon, formerly Matic Network, to address the rising congestion and high gas fees experienced on Ethereum. The team plans to integrate a soon-to-be-released smart contract allowing users to seamlessly port assets across blockchains.
Stani Kulechov Aave Founder
“High transaction fees are a feature of a successful public blockchain, as they define actors ready to pay the market price to use and secure decentralized services.”
The DeFi field has in the past favored those with thousands of dollars to invest while effectively locking out the small spenders. In a blog post on the Aave Medium page, Kulechov states the recent integration with Polygon will bring “inclusivity in the DeFi space,” allowing investors with only hundreds of dollars to participate as well.
“That being said, DeFi was always intended to create a sustainable and more inclusive alternative to traditional finance,” he added. “If DeFi is great but only limited to portfolios of five figures and up, DeFi will be falling short of its mission to finance for everyone.”
At launch, Aave will introduce seven assets available for lending and borrowing on the platform.
Zapper, portfolio management, and batched transaction network is also joining the Polygon network, a statement confirmed on Wednesday. Polygon will be the first in line with Ethereum scalability solutions with plans to integrate Optimism, Binance Smart Chain, and Arbitrum on the way.
With Polygon’s integration, Zapper will enable Ethereum-to-Polygon transfers allowing cross-chain “zap” transfers — its term for multi-transaction, single-click deposits, and withdrawals.
The new partnership will also enhance sending funds from Aave to Polygon, DeFi Dad of Zapper stated in a tweet.
Earlier in February, Matic Network rebranded to Polygon to enable Ethereum ETH 9.98% Ethereum / USD ETHUSD $ 3,983.99
$397.609.98% Volume 60.4 b Change $397.60 Open $3,983.99 Circulating 115.87 m Market Cap 461.62 b 17 h Ethereum Scaling Solution Arbitrum Opens its Mainnet with Sequencer for Developers 18 h Decentralized Trading Platform Slingshot Launches Open Beta On Polygon (MATIC) 19 h Uniswap Collecting More than Double the Fees Daily Generated by Bitcoin to compete with its rivals such as Polkadot. DOT 11.09% Polkadot / USD DOTUSD $ 41.31
$4.5811.09% Volume 5.15 b Change $4.58 Open $41.31 Circulating 937.63 m Market Cap 38.74 b 2 d Positive Momentum for Ethereum Continues with Another $60 Million in Inflows: CoinShares Report 6 d BoE Governor Andrew Bailey Says Crypto Investors Trading In A Bubble 1 w Binance Smart Chain (BSC) Is Feeling the Pressure of the Heightened Network Demand The sidechain scalability solution enables significant throughput increase while reducing the fees incurred on Ethereum transactions.