Our team is constantly on the lookout for solutions to power the next generation of DeFi (Decentralized Finance). With so many novel and ingenious technological solutions on the market to choose from, it’s not always easy to pick the best from the bunch.
Luckily, we’ve found the perfect fit to join the Coinchange family. We’re very excited to officially announce that we’ve integrated Polygon, a popular layer-2 scaling solution and blockchain network that optimizes speed, scalability, and low transaction fees.
With this new integration, Coinchange customers who’ve opened an Earn Account will be able to access Polygon’s ecosystem in order to earn additional rewards in the form of high APYs. Polygon’s recent successes speak for themselves, as its network recently surpassed over 362,000 unique active addresses and currently sits at a TVL (Total Value Locked) of almost $5 billion.
Polygon (formerly known as Matic Network) was designed as an additional layer to sit on top of Ethereum to help it dramatically scale and reduce network fees. Through its Polygon SDK framework, developers and users can access a suite of tools and features to deploy fast and scalable dApps (decentralized applications) while also leveraging scalability solutions such as Optimistic Rollups, zkRollups, and more.
The platform is extremely secure, flexible, and decentralized. Its network consists of over 500 dApps to date, as more developers are beginning to leverage its tools to create new and innovative solutions.
The native utility token is $MATIC, where holders can benefit from staking, facilitating transactions and settlements on the network via its PoS (Proof of Stake Consensus), and paying transactions fees (though very small).
Coinchange is a digital asset management company that strives to maintain the highest standard of security and risk management while offering some of the highest returns on your crypto. Adding Polygon as part of our cross-chain execution strategy is the first step to achieving this goal. After a thorough risk assessment of Polygon’s PoS chain, our team decided that adding it would help diversify our execution environment, which in turn reduces our algorithm’s overall counterparty risk.
Intrinsically, this Polygon integration will allow Coinchange to deploy strategies that are cheaper to maintain given the Ethereum network's massive congestion and high gas fees. Due to Polygon’s nature of being a sidechain of Ethereum, it incentivizes liquidity migration from Ethereum in order to sustain itself for the long term. These incentives are higher APYs across the board on different protocols that are also available in Ethereum, making Polygon a compelling opportunity to pursue and leverage.
Since Polygon is a fully compatible EVM (Ethereum Virtual Machine) chain, this integration allows us to test our strategy in an environment with fewer limitations (i.e. gas fees) than Ethereum. Imagine it as a canary network where we deploy as well as test new strategies which could easily be imported to execution on Ethereum, ultimately saving tremendous research and development efforts for our quant and blockchain developers team.