Polygon Opens Vault On MakerDAO, Commits $50 Million Worth Of Matic Tokens
Polygon has announced the integration of yield optimization vaults on the Maker Network. The blockchain-enabled protocol, formerly referred to as the Matic Chain, tweeted on Wednesday that it “will be opening a vault on Maker” and investing $50M of MATIC tokens as agreed liquidity from the treasury.
With the recent integration, it means the protocol has now broadened in scope, vision, and transformation to become an Ethereum scaling aggregator.
Such feet, among others, would see the protocol network providing developers with L2 solutions. This will be in addition to the POS/Plasma chain – mainnet, launched in April 2020.
Key Terms Explained
About The Polygon
Polygon provides the core components and tools to join the new, borderless economy and society. Two key platforms materialize it: The polygon framework and the Polygon protocol.
With these technologies, any project can quickly spin up a dedicated blockchain network that combines the best features of “stand-alone blockchains (sovereignty, scalability, and flexibility) and Ethereum (security, interoperability and developer experience).”
Plus, these blockchains are friendly with all the existing Ethereum tools such as Metamask, MyCrypto, Remix, etc. So again, the exchange of information among themselves and with Ethereum is facilitated.
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Summary: Polygon is a blockchain protocol and a framework for creating and connecting Ethereum-compatible blockchain networks.
One is collapsing together scalable solutions on Ethereum and supporting multiple chains in the Ethereum ecosystem.
What Is Matic Token?
MATIC, the native token of Polygon, is an ERC-20 token running on the Ethereum blockchain. The tokens are used for payment services on Polygon and as a settlement currency between users who operate within the Polygon ecosystem.
This has turned out to be quite positive for the MATIC community as the token as hovering in the green-zone marking 1% of growth at the time of writing this article.
As an integral part of the announcement, $50M of MATIC tokens have been committed by Polygon on the newly opened vault on Maker.
MakerDAO is an organization developing technology for borrowing, savings, and a stable cryptocurrency on the Ethereum blockchain.
It has created a protocol permitting anyone with ETH and a MetaMask wallet to loan themselves money in the form of a stable coin referred to as “DAI.”
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By integrating loans with a stable currency, MakerDAO typically allows anyone to borrow money and reliably predict how much they had to pay back. This alleviates the fear that used to come in the era of crypto to crypto borrowing.
Polygon Is Elated
Polygon board, opening a vault on Maker and committing $50M of MATIC tokens as seed liquidity from the treasury, sincerely thanks the MakerDAO community and team.
They appreciate the effort to quickly process the entire governance activities/polls and their feedback to onboard MATIC as collateral.
“This is a crucial development in Polygon’s long-term vision and commitment to develop the Ethereum scaling landscape and entice the gifted builders and engaged community members,” the board reveals.
Following this, Polygon will be minting DAI, which will invest in the Ethereum ecosystem.
Vault Projects On Polygon
Similarly, there are few other networks opening vaults on polygon technology. Beefy Finance, for instance, launched its first Beefy yield optimizing vault In Polygon on the 28th of April, 2021.
The finance tech is a Decentralized, Multi-Chain Yield Optimizer platform that allows its users to earn compound interest on their crypto holdings. In addition, it has launched a new Ape Swap vault deployed on Polygon.
Quarries On The Project
Despite the attractiveness, there have been some skeptical postures on the project.
Many keen crypto lovers and observers are quarrying that, If approved, would Polygon utilize this class of vault themselves?
Are there any specifically identified users – individual or entity – who have expressed an intention to use this class of vault if MakerDAO onboarded this collateral? Well, for now the MATIC community seems to be appreciating the latest development.
Featured image from Pixabay, chart from TradingView.com