What you need to know – Crypto News – Crypto News
Connect with us
What you need to know What you need to know

Cryptocurrency

What you need to know – Crypto News

Published

3 years ago

on

Contents

As noted in 2022, Polygon (MATIC) has made many partnerships with sectors outside the cryptocurrency market that have strengthened the growth of Layer 2’s ecosystem. Companies like Starbucks, Nubank and Mastercard are part of the giant list.

While more collaborations with MATIC’s network are expected, it is important to highlight a partnership on the crypto market made between Polygon and decentralized exchange (DEX) Uniswap (UNI).

First, it is necessary to take into consideration that both blockchain platforms may be quite prominent in 2023 in terms of attracting more users to themselves.

Polygon is one of the big growth bets, because besides being a scalability solution for Ethereum (ETH), it is involved in areas that should attract attention this year, such as the rollup.

As for Uniswapit may capitalize on the crypto market’s interest in DEX, given that centralized platforms are losing credibility with cryptocurrency investors.

In 2022, one of the biggest scandals in crypto history occurred when the FTX centralized exchange took billions of dollars from people who trusted Sam Bankman-Fried’s (SBF) character. This caused a considerable increase in activity on DEX in November.

How can Polygon and Uniswap help each other?

Despite the DeFi movement being slow in 2022, it has shown how important decentralized exchanges are. The emergence of Polygon has helped solve one of the biggest shortcomings in this industry as it brings greater efficiency to DEX Uniswap.

As noted by Layer 2’s development team, Polygon’s low fees have contributed to the arrival of more services on Uniswap and even attracted more traders to the DeFi platform.

Polygon also benefited from this partnership, as it experienced large growth in its total value locked (TVL), which may be the result of the project’s increased visibility in decentralized finance.

This partnership shows how Polygon’s network efficiency, coupled with Uniswap’s leadership liquidity, contributes to a more eye-catching DeFi with the potential to attract more and more people to this movement of decentralizing finance, bringing blockchain users closer to an ideal world free of bank ties. .

How does this partnership affect DeFi users?

Decentralized exchanges, prior to Polygon, suffered from a scenario in which they had to choose between the security of Ethereum’s (ETH) network or the low transactions of blockchains not as secure or less decentralized than that of the market’s leading altcoin.

Of course, a well-written smart contract could help prevent multi-million-dollar attacks from happening on a DEX. However, having a robust network like ETH’s may help further protect a decentralized platform.

However, the great truth is that no one wants to pay high fees to make a simple swap, for example.

But that shouldn’t mean giving up security, and that’s exactly what Polygon solves at Uniswap. In this sense, we can still see many more DeFi projects migrating to the solution that brings scalability without giving up protection, especially when the crypto market returns to the bull market and large volume is seen in DEXes again.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending