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 -0.40% Aave / USD AAVEUSD $ 386.69
-$1.55-0.40% Volume 635.31 m Change -$1.55 Open $386.69 Circulating 13.18 m Market Cap 5.1 b 3 mon Coinbase Enables its Over A Million Wallet Users to Use DeFi — DEXs, NFTs, & More 3 mon Software Provider Temenos Enables Crypto Trading for Banks 4 mon 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 0.79% Ethereum / USD ETHUSD $ 3,568.29
$28.190.79% Volume 20.04 b Change $28.19 Open $3,568.29 Circulating 117.55 m Market Cap 419.45 b 1 h $1.5 Trillion Asset Manager Franklin Templeton Eyes Crypto With Latest Filing 2 h AMC Entertainment to Accept Bitcoin, Ether, and other Cryptocurrencies as Payment 3 h Skybridge Capital Announces Intentions For Algorand (ALGO) Crypto ETF to compete with its rivals such as Polkadot. DOT -5.11% Polkadot / USD DOTUSD $ 34.65
-$1.77-5.11% Volume 2.31 b Change -$1.77 Open $34.65 Circulating 987.58 m Market Cap 34.22 b 2 d Solana (SOL) Dominating Institutional Interest, Accounting for Over 86% of the Total Inflows 2 d More than 65% of South Korean Crypto Exchanges to Shut Down Once FSC Deadline Hits 6 d Osprey Funds Launches Solana (SOL) Trust to Attract Institutional Investors The sidechain scalability solution enables significant throughput increase while reducing the fees incurred on Ethereum transactions.