Polygon, a blockchain scaling network, has revealed plans of a $100 million fund to ease accessibility to the decentralized finance (DeFi) space to end-users. Polygon’s fund, dubbed #DeFiforAll seeks to efficiently accommodate the numerous users and newbies jumping aboard the DeFi projects which include platforms and products.
According to the announcement from Polygon, its #DeFiforAll fund was put together to ensure that users priced out of DeFi projects up until now get to enjoy the benefits of the platform. The fund will also support DeFi for the next two to three years and will try to lure in the casual cryptocurrency users and newbies in the crypto space.
Sandeep Nailwal, Co-Founder and COO of Polygon, speaking after the announcement stated that one of the aims of Polygon is to make DeFi accessible to the next million users and they hope to achieve that feat through the #DeFiforAll Fund. “We want to support the top DeFi protocols on Ethereum and help them scale and grow with Polygon,” he added. Nailwal earlier this week stated that he was building a project that would grow alongside Ethereum, revealing that he spends 18-19 hours a day on the project which is still not enough as it is very far from perfection.
Polygon, founded in India as the Matic Network in 2017 before rebranding itself, is a layer-two network that processes transactions on its ‘sidechain’ before putting them together into the next block produced on the Ethereum mainnet. Polygon was an early secondary layer to the Ethereum Blockchain but now looks set to take advantage of Ethereum’s recent gas fee crisis to build up its name in the DeFi sector.
Polygon’s layer-two network has seen steady growth in the number of users, user activities, and transactions in recent months following its rebrand from the Matic Network. Polygon’s decision to integrate with SushiSwap, an ultra-fast network has led to a rise in liquidity and trading volume on its native Quickswap exchange, with daily transactions surpassing those of Uniswap on April 26.
Polygon’s effort to bring the DeFi space to users started a while ago and has so far yielded many positive results this year. Earlier this week, Decentralized finance yield protocol mStable, announced that it was adopting layer-two scaling solutions and its deployment on Polygon. As a result of the latest collaboration, users can enjoy relatively lower fees, compared to that of Ethereum mainnet deployment, as MStable’s interest-generating savings account, its asset swapping features and two of its “risk minimized meta-stablecoins” are now live on Polygon.
Aave, an open-source protocol, and Curve, both very popular DeFi protocols have also joined Polygon, bringing on board their thousands of users with them. Aave has within weeks of its launch has now seen over 7,500 users lock $1 billion in liquidity. The platform also recently launched a new program that enables lenders and borrowers to earn more rewards.