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Saturday, July 2, 2022

Polygon’s 2 Solution Layer Has Attracted DeFi Projects

Although the gas fees on the blockchain of Ethereum have gone down, it hasn’t stopped other projects to flock to Polygon. The number of decentralized finance users moving towards this protocol has simply increased over the last couple of weeks. There are multiple reasons for this movement- fast block time along with a far cheaper cost of translation. SushiSwap, Aave, and other projects of DeFi have simply catered to this platform- because the advantages are numerous.

Polygon Slowly Getting Better Than Ethereum? 

For the uninitiated, Polygon has been one of the earliest projects that provided Ethereum with a layer 2 scaling solution and has grown exponentially since then. Just as an example, SushiSwap, one of the most popular makers of the automated market, decided to apply for over 16,000 unique active wallets on this platform, where Ethereum has around 4,194 such wallets belonging to the company. This simply implies that market hotshots believe in this platform over Ethereum- an established crypto asset. 

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DappRadar has also brought out a report from the 10th of June which stated that the DeFi money market Aave has reported logged around $6.75 billion on an average in a transaction volume with Polygon. This is directly contrasted with the average for Aave and Aave V2 for Ethereum, where the price has been in the range of $2.48 billion, and $2.28 billion. According to CoinDesk, Aave has been working with this considerably newer protocol since March. The reason- an escape from the extreme transaction fees of Ethereum. 

Sameep Singhania, the co-founder of QuickSwap- one of Polygon’s many decentralized exchange protocols has stated the usage of layer 2 solutions by this protocol makes a lot more sense because the transaction cost is quite high. This indicates that most of the small markets in the DeFi protocol wouldn’t be able to utilize the application. 

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