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The former Ethereum rival will be integrated by two DeFi heavyweights.
Layer-two sidechain Polygon could be emerging as a contender after scoring two major wins today, as cripplingly high gas fees place scalability in the spotlight and numerous platforms race to become the default home of Ethereum’s decentralised finance, or DeFi, ecosystem.
Both the lending protocol Aave and the fund management and batch transaction platform Zapper have announced that they will provide Polygon implementations. Aave will open a trimmed-down fork of its money market with seven funds available for borrowing and lending at launch, while Zapper will allow Ethereum-to-Polygon transactions as the first step towards allowing cross-chain “zaps” — its word for multitransaction, single-click deposits and withdrawals.
As opposed to Ethereum, Polygon, a new sidechain rebrand of one-time Ethereum rival Matic, allows substantial improvements in throughput as well as fee reductions. Several NFT ventures have announced migrations to the chain, and native DeFi platforms are gaining large amounts of overall value locked.
In a statement to Cointelegraph, Aave founder Stani Kulechov said that the fee reductions will bring more “inclusivity” to the platform, and Aave’s announcement blog post states that the platform is turning its focus toward scalability in an effort to bring services to users who have as little as a few hundred dollars. This is also what will be the first of several implementations of Aave on various layer-two platforms, per the blog post.
Meanwhile, Zapper stated in its announcement that this integration would be the first of several sidechain, rollup, and Ethereum-alternative integrations, with support for xDai, Arbitrum, Optimism, and Binance Smart Chain to follow.
The target of cross-chain yield farming has been on several projects’ radars in the last year, but implementation is notoriously challenging. A dashboard for monitoring yield across several chains, as well as “seamlessly shifting networks on Zapper,” would provide substantial improvements in capital performance.
According to Zapper’s “DeFi Dad,” the network will soon be able to have entry to Polygon’s Aave market:
— DeFi Dad ⟠ defidad.eth (@DeFi_Dad) March 31, 2021
Aside from Polygon, scaling efforts around the ecosystem have been attracting a lot of attention recently, with StarkWare earning $75 million last week being the most notable.