Aave Adopting Polygon’s 2nd Layer Solution

in LeoFinance16 days ago (edited)

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The Defi craze led to a massive expansion of assets on Ethereum, but high transaction fees and network congestion remain the major issues marring the blockchain.
2nd layer scaling solutions comes to the rescue. They run on top of the Ethereum and inherit the mother layer security, but provide increased transaction capacity, improved efficiency(low gas fees) and faster transaction confirmations.
Recently Ethereum virtual reality platform; Decentraland has launched an account portal with layer 2 project Polygon to address the issue of gas price.
And recently the DEFI platform Aava have also decided to look for scaling solutions to counter high transaction fees. Aava will be exploring scalable sidechains with Polygon(formally known as Matic). Soon Aava user will be able to use a smart bridge to seamlessly port assets to a more optimized side chain(and vise verse).

The announcement reads:

The Aave Protocol has a multi-market approach and will implement it to scalability solutions in a “New Frontiers” exploration. One of the main assets of DeFi is the ability to build synergies with other projects, and by having an Aave Market in all the venues that matter, there’s no need for a “winner-takes-all” scalability solution and users can choose the solution they feel comfortable with.
The first implementation of the exploration of New Frontiers will be with Polygon (formerly known as MATIC).

It seams instead of just sticking with Polygon, Aava will be adopting a much broader approach of exploring multiple side chain solutions, providing its users with freedom to choose among variety of scaling solutions. But as of now, it will be Polygon only.

I remain a long time fan of Matic(native polygon token) and believes it is gonna sky, as more projects adopt Polygon as a 2nd layer solution.

Hodl

See you on the moon!!!

PS: Not a financial advice!

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It is clear that Ethereum fees are a serious problem for the ecosystem and platforms are rapidly migrating to layer 2 to prevent others from taking the cake. But the paradox is that if they succeed, Ehereum's costs will plummet and then it will remain predominant. The truth is that I do not see how you can lose control. But at least the market will balance out a bit.

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 15 days ago (edited)

Yeah...It is paradoxical. But the assumption is Ethereum price will plummet with reduction in gas fees due to 2nd layer solutions. But I think activity on blockchain will increase many folds once cumbersome gas fees gets out of the equation.

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