The strong stronger, Polygon and VAVA Finance reached an in-depth cooperation
Among many Layer2 protocols, Polygon is undoubtedly the most eye-catching one.
Polygon’s market value ranks 19th in the entire digital currency market value, with a market value of about $7.2 billion. The amount of locked up is $6 billion, which is the largest amount of locked up among all L2 projects. At the same time, the number of active wallets of Polygon exceeds Ethereum every day, an increase of 13,000% over the previous year.
As the native Layer 2 of Ethereum, good EVM compatibility of Polygon allows DeFi projects built on the first layer of Ethereum to easily migrate to the network with simple adjustments. At the same time, Polygon can also provide much higher performance than the layer1 and almost can negligible operating costs on the chain. Mira Christanto, a researcher in Messari, has previously pointed out that the Polygon network already trades three times as much as the Ethereum, but the total gas fee is only 0.01% of the former.
Performance and cost advantages have become the cornerstone of Polygon’s rapid ecological expansion, supplemented by the subsidies of MATIC, and the advertising effect brought by the deployment of DeFi head projects. For a while, a large number of projects began to flock to Polygon. Awesome Polygon data shows that there are now 273 DAPP and more than 60 infrastructure and development tools in the Polygon ecosystem.
However, looking at the data, you will find that the TVL of the Polygon ecosystem is undergoing a downward adjustment. The reason is that many DeFi protocols are weak in innovation and often encounter the dilemma of “withdrawing and selling”.
It is in this condition that a new generation of innovative lending protocol VAVA Finance came into being. VAVA integrates multiple functions such as flash loan, stable interest rate loan, LP loan, credit delegation, isomeric cross-chain bridge, innovative DAO, etc., and is committed to making asset circulation more convenient and efficient.
In the general DeFi protocol, the design of DAO is only limited to the functions of proposal, voting, dividends, etc., but VAVA innovatively combines the DAO design of Curve, and the gameplay of veVAVA added. Users can get by locking in VAVA and obtain veVAVA. There are three functions, one is to capture the income of the protocol, the other is to have the right to propose and vote, and the third is to accelerate mining up to 2.5 times.
In addition, VAVA uses the RZL MPC algorithm to manage ECDSA keys by accessing RenVM to realize anonymous interaction and token transmission between the two main chains. Any asset can be converted to other main chain ecology, there are three types of cross-chain transactions that can be supported: locking and casting, destruction and distribution, and destruction and casting.
For example, through RenVM, after DOGE is connected to the Polygon ecosystem, the VAVA protocol regard RenDOGE as the underlying asset of the loan, and users can mortgage RenDOGE and lend mainstream assets.
This action can introduce non-ETH-based assets into the Polygon ecosystem, including other well-known public chain assets. In this way, it greatly enriches the underlying lending assets of the VAVA protocol and greatly contributes to the improvement of TVL.
As the so-called same frequency attracts, when the continuously enterprising Polygon meets the innovative VAVA, the next thing will go with the flow. It is reported that the VAVA team has reached an in-depth cooperation with Polygon officials. In the later stage, Polygon will officially integrate with the VAVA protocol in terms of brand and flow. VAVA will also attract a large number of fans about 5,000 in East Asia, South America, Central Europe and other regions through a series of cooperation partners, and bring them into the Polygon ecology. VAVA will provide some VAVA tokens for ecological cooperation, airdrop rewards for some Polygon users, dual mining rewards for other combination protocols, and so on.
The strong stronger, the siphon effect of the leading project is unbreakable in the Internet, and it is also applicable in the blockchain world. With its strong first-mover advantage, resource advantage, and head effect, Polygon is constantly becoming the biggest supplement to the Ethereum mainnet. The VAVA protocol relies on its huge traffic advantages and technical barriers, and is expected to become the top lending project second only to AAVE. The strong combination of the two will surely further consolidate Polygon’s head position and will also bring VAVA a greater leap.
Venus and Pancakeswap are the benchmark a protocol of the Binance Smart Chain, and AAVE and Uniswap are the benchmark protocol of Ethereum. So, in the Polygon ecosystem, will VAVA Finance, which has multiple innovations, be the benchmark protocol for lending in addition to Quickswap as a DEX?
Let us keep an eye on it together!