Aave Migrates to ChainLink Powered Sidechain Due to Ethereum Fees

Aave, the decentralized finance platform (DeFi) that offers loans in cryptocurrencies, will bet on sidechains, rollups and zero-knowledge protocols for its scalability phase. In this way, will switch to using a ChainLink powered sidechain (LINK) to avoid the high fees involved in using the Ethereum blockchain.

This sidechain, called Polygon – formerly known as MATIC -, is a sidechain to Ethereum that allows fast and almost free transactions.

At the beginning of this new development phase for Aave, the available assets will be Polygon (MATIC), USD Coin (USDC), Tether (USDT), Dai (DAI), WETH (WETH), Aave (AAVE) and Wrapped Bitcoin ( WBTC).

To encourage users to explore these new alternatives, a smart contract will be offered as a bridge – which It is now available– to bring favorite Ethereum assets to Polygon. Who use it they will receive MATIC tokens to cover an important part of the commissions transaction.

Also, thanks to the integration of the EIP-3085, the transfer from Ethereum to Polygon will be a matter of a couple of clicks through MetaMask, according to informs the platform itself through Medium.

On the other hand, the cited source highlights that this Aave experience with Polygon can offer this community the option to test new types of collateral for your loans that could perfectly fit your operation. One of them could be precisely MATIC.

This is what the Aave interface looks like in Polygon. Source: Aave.

Polygon has more and more associated applications, such as Aavegotchi —a customized version of the popular Tamagotchi game—; Quickswap, a decentralized exchange; and also Decentral Games.

PoolTogether también se une a Polygon

Aave was not the only project that started using Polygon recently; PoolTogether, an online cryptocurrency lottery platform, will also use this Ethereum sidechain, of which its low commissions stand out in the Twitter post in which the announcement was made.

Thanks to this new alliance, PoolTogether announces the “first true no loss prize pool” within this sidechain. The reduction in commissions is a substantial improvement, taking into account that this platform is based on the deposit of DAI and other tokens developed in Ethereum to then sort out the interests among the lottery participants.

I try to respect the philosophy of Aave

Aave was born in 2017 – although at that time it was called ETHlend – and was developed based on Ethereum L1. The Ethereum community was the driving force behind the growth of this loan platform in which the user You can request a credit in cryptocurrencies or offer one to later earn with the interest generated.

One of the main goals for which DeFi such as Aave were created is to generate a more inclusive alternative to traditional finance. The premise is that it is also an accessible tool for the largest number of people, even those inexperienced in this field.

What has motivated innovation and the search to reduce costs is the fact that, in the public blockchain, the availability of blocks is governed by supply and demand. Thus, due to the growth of DeFi that CriptoNoticias reported in July 2020, today this availability is scarce, which translates into high commissions for transactions.

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Aave Migrates to ChainLink Powered Sidechain Due to Ethereum Fees

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