- Polygon and Aave have partnered to launch a liquidity mining program on Ethereum.
- Polygon has allocated 1% of MATIC supply worth $40 million to the program.
- The program aims to create an inflection point for DeFi on Ethereum.
Polygon (Matic Network) has partnered with Aave to launch a liquidity mining program to scale and grow the world of DeFi on Ethereum. The program will utilize 1% of MATIC supply worth about $40 million.
Of note, Aave is a rising DeFi platform with over $6 Billion in total value locked. On the other hand, Polygon is a leading DeFi solution provider that has worked with many leading DeFi projects. For instance, Polygon has worked with Sushiswap, Polymarket, and InstaDapp.
In particular, Polygon aims to help address some of the pain points currently limiting transaction efficiency on the Ethereum network. To be specific, Ethereum has been struggling with scaling limitations which have led to congestion and high gas fees on the leading smart contract platform.
Speaking on the partnership, Aave Founder and CEO, Stani Kulechov, noted,
If DeFi is great but only limited to portfolios of five figures and up, DeFi will be falling short of its mission to finance for everyone. Polygon enables this and makes DeFi accessible to a wider audience globally.
However, the challenges faced by the Ethereum network serve as a reflection of the platform’s popularity. To date, Ethereum supports at least 200 DApps, 15 million transactions, and more than 300,000 wallet addresses.
Thus, it is critical that Polygon and Aave have joined to help drive Ethereum scalability and make DeFi accessible to all. However, to achieve this the two have committed to a two phase strategy.
In fact, the 1% MATIC supply will be split equally between the two phases. The first phase will run from today (April 14) to 12:00 UTC on June 14, 2021. Subsequently, the second phase will run from June 14 to April 13, 2022, both at 12:00 UTC. Notably, each phase will consist of about $18 million in rewards.
Also, the program will be supported by Polygon decentralized exchanges (DEX) like Quickswap and ComethSwap. The two DEXs will allocate a portion of their token supply towards setting up farms for Aave Receipt Tokens. Also, ComethSwap is also working on Triple Liquidity Mining to add an extra layer of space for Polygon users.