The central theses
- Aave, a decentralized credit and credit protocol, has announced that it will be building a new DeFi service on Polygon.
- As the Ethereum sidechain, Polygon will help lower the exorbitant gas fees that Aave is currently subject to.
- The team will soon build a smart contract bridge that will allow Aave users to port their assets to Polygon using Metamask.
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Decentralized lending platform Aave announces that the DeFi platform will be scaled beyond the Ethereum blockchain by also merging several sidechains, including Polygon.
Aave explores polygon
According to Aave, Ethereum’s exorbitant gas fees are an issue. Although it is recognized that high fees are a feature of a “successful public blockchain” because they indicate that users are willing to pay the price for their services, alternative solutions are needed.
With this in mind, the team will be porting its platform to Polygon, a Layer-2 proof-of-stake sidechain that runs alongside Ethereum’s main network. Users can send back and forth over the sidechain Token over a bridge protocol and thus offer lower transaction costs than Ethereum itself.
Aave says that once the platform is available on Polygon, the native asset (MATIC) will be added to the list of collateral. To begin with, the assets used as collateral for Polygon-based Aave Markets include the following MATIC, USDC, USDT, DAI, WETH, AAVE and WBTC.
The team will also create a smart contract bridge that will allow Aave users to port their assets to Polygon using Metamask.
Polygon is a top choice for NFTs
Aave is the third largest operational DeFi platform with a total locked down value of over $ 5 billion. This makes Aave the most significant DeFi platform available on Polygon.
Polygon has also incorporated several other projects. It has attracted the NFT game Aavegotchi, the prediction market Polymarket, the betting platforms Decentral Games and SportX, the DeFi platform EasyFi and the blockchain RPG game Neon District.
Polygon itself is the 27th largest DeFi protocol with a total locked down value of $ 175 million. It was previously known as the Matic Network.
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