Equilibrium combines Polygon’s cross-chain DeFi services
Following the connection, Equilibrium will enable Polygon users to take advantage of the Equilibrium DeFi 2.0 platform’s breakthroughs and benefits.
Polygon is a Layer 2 scaling solution for Ethereum that enables fast and cheap transactions. Polygon’s cross-chain infrastructure allows users to move assets freely between Ethereum and other blockchains.
The Polygon Network ecosystem is home to a growing number of DeFi applications and projects.
Equilibrium is a multi-chain DeFi platform that enables users to earn interest on their digital assets, borrow against them; and trade them on decentralized exchanges. The platform is built on the EOSIO.
Developers will also be able to develop scalable solutions that combine cross-chain connectivity and communities, allowing both sides to take advantage of the connection.
Equilibrium and Polygon integration utilization cases
The combined platform of Equilibrium and Polygon offers an abundance of advantages for both parties. MATIC holders will be able to borrow assets on Equilibrium using their tokens, for example.
The ecosystem offers another degree of liquidity, allowing borrowed assets to be swapped and even traded on the Equilibrium decentralized exchange.
Borrowers will require low collateralization of 105%, which is 20X the leverage. The Polygon network will also allow for much faster transaction speeds than Ethereum, which is essential for DeFi applications. In addition, Polygon’s gas fees are much lower than Ethereum’s.
Equilibrium will also benefit from Polygon’s integration as it will allow the platform. To offer its services to a wider range of users. Polygon’s cross-chain solution will allow Equilibrium to tap into a larger pool of assets and liquidity.
Users will also enjoy the benefit of spreading exposure to market volatility. Furthermore, they’ll be able to take advantage of low-interest rates for loans. Users will be able to borrow against their MATIC investment using the same amount of ETH.
Following the integration, Equilibrium intends to expand its loyalty program to existing and new customers. Users will be able to quickly earn a 10% to 20% average APY. The APY earned in Equilibrium is determined by the amount of liquidity supplied. The greater the provision, the higher the APY.
Users will have the option of earning interest on their crypto assets by insuring them. The insurance is useful in times of panic among network members.
Polygon will charge a fraction of a penny when the transaction is completed. For cheaper movement of both crypto assets and stablecoins between partners.
Polygon’s fast and secure infrastructure will enable Equilibrium to process a large number of transactions with high speed and security.
Balances can be used by individuals to borrow money from Equilibrium through Aave, which is based on Polygon.
Users will be able to use their AAVE tokens as collateral to borrow funds from Equilibrium. This will allow users to expand their position without having to sell any of their existing assets.
The integration will also allow JellySwap and Dfyn Network users to access its services. To exchange assets for Equilibrium, which can be used for pool locking.
This is a plus for Polygon, as it shows the platform is being used by some of the biggest names in DeFi. Polygon has been growing at an impressive rate, and this latest news will only help to increase its profile even further.
With Equilibrium now on board, Polygon is well on its way to becoming the go-to platform for cross-chain DeFi.
The assets that were borrowed on Equilibrium are now being moved across the Polkadot ecosystem using XCM Communications.
However, in the future, Equilibrium plans to launch ERC20 compatible smart contracts and EQD liquidity on the Polygon Chain. This will effectively convert it into an Ethereum-based network.
This would greatly increase the number of assets that could be used on Polygon. As well as the potential for inter-chain DeFi applications.