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Polygon

Check out These Best Polygon DeFi Ecosystem Projects You Can Explore

Posted Tuesday, February 21, 2023 by
Sophia Cruz • 2 min read

Polygon (MATIC) became popular because of its Layer 2 scaling solutions for Ethereum that provides lower gas fees, faster transaction speeds, and increased interoperability in the blockchain industry. 

So far, Polygon is the only L2 solution with an actual native token (MATIC). This indicates more secure staking while enjoying the benefits of rewards and low fees and being eligible for potential airdrops in the future. 

Since its launch in 2019, Polygon had already released a lot of DeFi Ecosystem Projects. And which of them leads the pack? Move along as we tackle Polygon’s best DeFi Ecosystem Projects. 

Covo Finance

Covo Finance, a newly launched decentralized sport and perpetual exchange on the Polygon network has been one of the best due to its revolutionary protocol. It enables users to trade ETH, BTC, MATIC, and other cryptocurrencies from their crypto wallets. Users are also allowed to do spot swaps and trade perpetual futures up to 50x the leverage while keeping their assets by utilizing a crypto wallet. This only shows that Covo Finance has a better trading experience with low swap fees, and free impact trades, and minimizes the risk of being hacked or other security breaches.

In addition, Covo Finance has liquidity pools that are designed to counterparty trades and mitigate risks to traders. For example, when a user mints COVOLP tokens, they’d earn 70% of the generated fees on that particular blockchain. Whether a trader loses or vice versa, they still get a profit. 

Moreover, Covo Finance has a user-friendly platform for users on all experience levels. The platform is also accessible from any device with an internet connection. Lastly, it also uses Chainlink Oracles for dynamic pricing, aggregating prices from other high-volume exchanges, and providing users an accurate data in real time. 

Aave

This decentralized lending and borrowing protocol allows users to earn interest on their crypto assets and borrow them at the same time. That’s why Aave is one of the best and most popular DeFi protocols in the Polygon ecosystem.

As of February 2023, the AAVE’s total value locked has reached over $175 million. And when it integrated with Polygon’s L2 solution, the users were able to take advantage of the faster transaction speeds and lower gas fees leading to a massive $2 billion worth of assets locked in Aave’s Polygon market. 

Since ETH gas fees were high, Polygon’s L2 solution helped to allow users to have lower gas fees and its fast speed has made Aave accessible to more users.

Aave and its AMM (automated market marker) also enable traders to transition from one position to another without a hassle. They also have a strong community that consists of users, developers, and stakeholders that are working together to build more innovative solutions on DeFi.

Curve

One of our best picks when it comes to DEX (Decentralized Exchange) is Curve. It was built to provide users low-slippage and low-fee trading experience. It also specializes in stablecoin trading and has become one of the most popular DeFi protocols in the market. 

Aside from the lower gas fees and fast transaction speed that the Polygon L2 solution contributes, Curve has also been working on improving its user experience by launching a new user interface that would make the users trade and manage their assets easily. In addition, Curve is also working on increasing the liquidity on its platform to incentivize users by launching a liquidity mining program. 

In the last week, CRV has recorded a trading volume amounting to $1.07 billion marking it as a new high for this year.

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