Aave, the DeFi platform, has announced that it will be implementing Polygon to offer more scalability and lower fees amid increasing congestion on the Ethereum Network.
The platform was originally launched on Ethereum L1 and quickly became one of the most important Decentralized Finance (DeFi) projects during the “DeFi Summer” of 2020, a period in which DeFi took the crypto ecosystem by storm in what would become one of the biggest bull runs seen by the crypto market.
However, despite Ethereum occupying the spot as the leading blockchain network at this time, the network has seen its block space supply grow increasingly scarce and limited, which has resulted in increased congestion and gas prices, which have affected the projects it initially helped succeed.
Aave Sees Polygon as a Solution
Now, Aave’s integration with Polygon will allow users to enjoy more scalability, faster transactions, and lower gas prices that will boost the platform to new levels as the crypto market continues to grow.
The move is the “first wave” in Aave Protocol’s “New Frontiers” exploration mission, which is aimed to allow it to build synergies with other projects and expand to a multi-market approach to secure the future growth of the protocol.
Using Sidechains with Polygon
This first wave will see the implementation of a scalable sidechain on Ethereum by using Polygon, increasing throughput and reducing fees, as well as allowing the collaboration with other DeFi protocols and projects by facilitating communication.
Polygon’s partnership with Chainlink will also allow the Avee protocol to provide better quality on price feeds by taking advantage of one of the best Oracle Networks in the current crypto ecosystem, improving the protocol’s current standards.
Aave users will also have access to MATIC, Polygon’s cryptocurrency, being able to use it as collateral in addition to other assets such as USDC, USDT, DAI, WETH, AAVE, and WBTC.
Many Fresh Features
This will be possible once the Smart Contract Bridge is deployed, with users who make use of it receiving part of transaction fees used in MATIC to cover part of their transaction fees on the Polygon blockchain.
The bridge can also be used to transfer assets from Ethereum to Polygon, which will prove useful for users wanting to migrate their assets.
The recent rise in popularity experienced by Polygon has also made the process of transferring assets to Polygon easier than ever before, with popular wallets like Metamask deploying one-click solutions.
Transforming Ethereum Into a Multichain System
Matic rebranded to Polygon earlier this year as it aimed to become a solution to Ethereum’s growing congestion problem by transforming it into a multi-chain network and offering integration with other Layer-2 solutions.
With the rebranding, Polygon said it would extend the scope of the Matic Platform by allowing Ethereum to integrate scalation solutions like zkRollups, Optimistic Rollups, and Validium, as well as interchain communication protocols to become “the internet of blockchain”.
A Growing Platform
Polygon, originally launched in 2019, has become increasingly relevant in the crypto ecosystem as the congestion on the Ethereum network increased.
However, it would not be until early 2021 when the project would become one of the top 100 projects in the crypto market by market capitalization.
The announcement of the integration saw MATIC’s value increase by over 10% in a matter of minutes, a similar trend to the one experienced by AAVE.
Polygon also saw DeFi platform Zapper announced that it will be integrating the network, which is expected to be the first of many sidechains as xDAI, Optimism, and Binance Chain will also be covered in the future.
These moves show an increasing interest from crypto projects to find alternatives to the Ethereum network at a time when its future is still uncertain as competition in the blockchain industry continues to increase.
