mStable Deploys on Polygon
mStable has gone live on Polygon by launching a savings account, stablecoin, and swap services. mStable is looking towards exploiting the layer two solution from Polygon that will reduce fees for DeFi users.
mStable, a DeFi yield protocol, has launched on Polygon (MATIC). This move will add to the growing list of projects shifting to the layer two platform to take advantage of the low fees and faster transactions.
The services that mStable has deployed on Polygon include a savings account, two risk minimized stablecoins and asset swapping services. These services will be offered at lower fees than what is charged on the Ethereum mainnet.
Polygon Offers Scalability
Polygon provides a layer two solution that has a sidechain for processing transactions. After processing, the transactions are grouped in the next block and later produced on the Ethereum network.
In a blog post by mStable, the firm highlighted the crisis being faced by DeFi users on Ethereum because of the rising gas fees. The company also stated that while the demand for a secure and high-yielding savings account was high, they could not price out their product given the high gas fees on Ethereum.
The CEO of mStable, James Simpson, also showed support for Polygon by noting its scalability benefits. Simpson did this, noting that Polygon was scalable, charged meager transaction fees and attracted significant DeFi projects.
During the announcement, mStable also gave a hint on launching three significant projects on Polygon. These projects will include liquidity incentives, free transactions by collaborating with Biconomy and bridging Polygon and Ethereum mainnet.
DeFi Protocols Exploring Layer 2 Solutions
Polygon has been recording a rising number of projects jumping to the platform, hoping to take advantage of second-layer solutions. The leading cause of this shift is the high gas fees on Ethereum, making DeFi developers jump ship looking for cheaper alternative solutions.
The Ethereummainnet has also been faced with transaction lags, which the Eth2 upgrade will solve. However, with the upgrade happening in a few years, DeFi protocols are now looking for layer two solutions that will offer a current solution.
Polygon offers scalability from Ethereum’s mainnet and developers have now turned attention to this platform.
Some of the significant DeFi projects that have been launched here include Decentraland and SushiSwap. Aave also recently accrued $1 Billion in liquidity within ten days after launching on Polygon. This figure illustrates the great potential of switching to layer two platforms.