Aave, DeFi’s third-largest protocol by assets in its smart contracts, will be expanding onto the Polygon network as it aims to improve scalability.
Need for Scalability
Consistently high gas fees, while indicative of Ethereum’s growing success and adoption, have the downside of pricing out smaller investors, Aave said in a March 31 blog post. In order to facilitate accessibility, Aave hopes to implement a “multi-market approach” to scalability solutions.
“One of the main assets of DeFi is the ability to build synergies with other projects, and by having an Aave Market in all the venues that matter, there’s no need for a “winner-takes-all” scalability solution and users can choose the solution they feel comfortable with,” they wrote on their blog.
The Polygon Network
Polygon (formerly MATIC) is an interoperability blockchain scaling framework focused on ETH-compatible sidechains with nearly zero transaction fees.
The Polygon network already hosts the popular NFT game Aavegotchi, the digital asset lending protocol EasyFi, and the decentralized exchange Quickswap.
Polygon Aave Market
At launch, the Polygon Aave market will support Polygon’s native token, MATIC, as well as USDC, USDT, DAI, WETH, AAVE, and WBTC. Ethereum users will be able to transfer their assets to Polygon via the Polygon Bridge.
To be sure, Aave still plans to continue operating on Ethereum L1, and plans to offer more scalability options in the future.