June 22, 2021

Polygon Network Raises $100 Million to Support Growing DeFi Adoption

2 min read

Ethereum scaling task Polygon recently launched a fund intended towards making decentralized financing (DeFi) more available to end-users.

Dubbed “#DeFiforAll”, the fund will look to incorporate users to decentralized items and platforms. The funding, which will be assisted in through Matic coins, will originate from the Polygon’s network and be released over the next a number of years.

Without a doubt, the DeFi space has grown at a rapid rate in the past year. When the new industry first acquired traction in the summertime of 2020, its total worth locked (TVL) was barely at $1 billion. Now, with procedures such as Polkadot and UniSwap more popular than ever before, the figure sits closer to $65 billion.

Ethereum’s Sky-High Gas Fees a Blessing in Disguise for Polygon

But Defi’s success hasn’t come without hefty costs. With the Ethereum network more overloaded than ever, deals costs have soared. According to YCharts, Ethereum’s typical gas cost is at 79.19 Gwei since press time — — marking a 650% increase in the previous year alone.

These ultra-high gas charges have actually been a barrier to entry for numerous interested in taking part in the DeFi ecosystem. But with its newest fund, Polygon will seek to introduce countless users to DeFi products and platforms. Sandeep Nailwal, co-founder of Polygon, said:

“Polygon is devoted to making DeFi accessible to the next million users, and we hope to accomplish this through the #DeFiforAll Fund. We want to support the top DeFi procedures on Ethereum and assist them scale and grow with Polygon.”

Pointing out the recent surge in popularity of DeFi Protocols such as Curve and Aave, Polygon’s $100 million fund will continue to boost and support the area. Aave and Curve are the latest protocols to move to Polygon’s layer 2 network in lieu of Ethereum’s.

Matic, now rebranded as Polygon, surged to brand-new highs this year with the procedure seeing a reported 10x increase in transaction volume. Source: MATICUSD on Tradingview.com

This migration in user base has actually assisted Polygon achieve enormous development in transactions and active users. The recent boom in network activity served as one of the major catalysts for the Matic token rallying over 4000% year-to-date.

Included image from UnSplash