Aave has announced integration with Ethereum’s sidechain Polygon. Aiming to provide alternatives for DeFi applications to be used by everyone, the implementation will allow users to leverage “nearly-free” transactions.
With a “nascent ecosystem” composed of protocol such as Quickswap and Aavegotchi, Polygon is connected to Chainlink oracle service. Therefore, the information that will feed into Aave protocol will be secured. Aave team stated:
Formerly known as MATIC, this sidechain will allow users to tap into Polygon Aave marketplace to trade token MATIC and 6 additional assets including Bitcoin’s synthetic version WBTC, WETH, AAVE, and stablecoins USDC, USDT and DAI.
In addition, the integration will feature a “bridge” so that assets can be “exported” to Polygon’s sidechain. That way, users will be able to receive “part of the transaction fees” for paying for transactions on this blockchain using MATIC.
As Aave’s team highlights, high fees on Ethereum can be, at the same time, an impediment for some users and a feature of a blockchain’s success. “Demand for the use of Ethereum” has not abated since last summer’s DeFi boom.
This is driven by organic growth of V1 and V2 as well as the new AMM Market for liquidity pool tokens, which already holds $60 million. Liquidity has been well utilized, generating a record level of interests and Flash Loan fees nearly reaching $10 million.
As a bonus, Aave has integrated with Taurus to enable a custody solution and with Dharma to allow bank deposits directly into the protocol.
At the time of writing, AAVE is trading at $394 with 8.67% losses on the daily chart. However, over the week AAVE is up 11.5%. Its numerous partnerships and fundamentals indicate a continuation of its upside trend for this chart.