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 2.61% Aave / USD AAVEUSD $ 61.64
$1.612.61% Volume 68.05 m Change $1.61 Open $61.64 Circulating 14.09 m Market Cap 868.77 m 1 y Coinbase Enables its Over A Million Wallet Users to Use DeFi — DEXs, NFTs, & More 1 y Software Provider Temenos Enables Crypto Trading for Banks 1 y Aave Is Testing Private Pools for Institutions to Ape into DeFi, Reveals CEO Stani Kulechov , 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 2.87% Ethereum / USD ETHUSD $ 1,206.36
$34.622.87% Volume 7.38 b Change $34.62 Open $1,206.36 Circulating 122.37 m Market Cap 147.63 b 10 mon Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 10 mon A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 10 mon The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022 to compete with its rivals such as Polkadot. DOT 2.19% Polkadot / USD DOTUSD $ 5.27
$0.122.19% Volume 195.27 m Change $0.12 Open $5.27 Circulating 1.14 b Market Cap 6 b 11 mon Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 11 mon SBI Holdings to Launch Japan’s First Crypto Fund; Including BTC, ETH, DOT, LINK, LTC, XRP & BCH 11 mon Solana Unaffected by Price Jitters while Bitcoin, Ether, Polkadot, and Cardano Post Outflows The sidechain scalability solution enables significant throughput increase while reducing the fees incurred on Ethereum transactions.