Polygon (MATIC) is a blockchain project that could be defined as everything that Ethereum 2.0 wants to be in the future. It is a product that allows us to deal with the problems of scalability and commissions that Ethereum presents at times of high demand for use. Polygon, formerly Matic, was an idea developed by Jaynti Kanani, Sandeep Nailwal and Anurag Arjun, who decided to team up to create a sidechain to solve the problems of scalability and usability of Ethereum.
Polygon, compatible con Ethereum
To achieve this, Polygon used Plasma, along with a structure of nodes that would have control of a sidechain running on the Proof of Stake (PoS) protocol, the same one that was going to drive ETH 2.0. In addition, the network has a fully compatible implementation of the Ethereum Virtual Machine and its Solidity language, allowing devs to easily port their dApps from Ethereum to Polygon. This way, any Polygon user has two-way access to the Ethereum ecosystem, without having to struggle with Ethereum’s growing fees and issues.
The development of Polygon saw the light on May 19, 2020. That day the history of this sidechain began. Since then, the MATIC token has gone from a minimum of €0.003012, to an all-time high (December 27, 2021) of €2.92. Even amidst the current bear market, Polygon’s MATIC token is holding strong, priced at €1.55, thus underlining its importance in the crypto markets.
Polygon, the favorite network to create NFTs on OpenSea and avoid high Ethereum fees
Large projects within the Polygon ecosystem
1inch is a DEX that was created in May 2019 by Serjez Kunz and Anton Bukov, two Russian developers specialized in smart contract auditing. This DEX works based on a protocol deployed both on the Ethereum network and on the Polygon network. The objective is to make the exchanges in it cheaper and faster.
1inch is a quite particular DEX, because its operation depends on dividing the exchange order that the user receives, among the different DEXs that it uses as liquidity feeders. For example, if you want to exchange ETH for WBTC, what it does is take your trade order and split your order between the different DEXes it has indexed (Uniswap, Kyber, AAVE, Bancor, Curve, Compound, Yearn, among others).
The main tool to achieve this is the Pathfinder algorithm. This algorithm is responsible for analyzing the different pools available in those DEXes, to carry out the exchange you are looking for. By analyzing all the information, Pathfinder is responsible for completing your order in the best possible way. It does this by simulating the slippage price for the given order and calculating the cost in gas and other fees for the trade. This process is repeated in each of the DEX consulted (which can be up to 12 at the same time). At the end, a comparative table is created to offer you the most optimal exchange solution taking into account:
- The exchange that offers the best price.
- The lowest cost of operation and commissions.
It also offers the ability to create proprietary liquidity pools within 1inch for intra-platform trades and has advanced trading features such as the ability to create limit orders for more precise handling of trade orders.
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Curve is a DEX that works based on an AMM protocol, which allows the exchange of stablecoins in an extremely efficient way. Launched in January 2020, Curve allows users to trade between stablecoins with low slippage, a low-fee algorithm designed specifically for stablecoins, and earning fees.
Behind the scenes, the tokens held by the liquidity pools are also fed to the Compound or iearn.finance protocol, where it generates more revenue for the liquidity providers.
Currently, there are 7 Curve pools: Compound, PAX, Y, BUSD, sUSD, ren, and sBTC, supporting an exchange for a wide variety of stablecoins and assets. Currently Curve does not have a native token. Although the team plans to release a CRV token eventually. Each Curve pool has its own ERC20 token. Curve is considered one of the largest DEXs in the world, ranked second by TVL, with a value of $11.32 billion. Curve can be fully used in the Polygon network.
JellySwap, atomic swaps over Polygon
One of the lesser known, but more practical projects within the Polygon ecosystem is Jelly Swap. Jelly Swap is a decentralized exchange (DEX) that has the ability to perform cross-chain atomic swaps, allowing its users to directly exchange cryptocurrencies without any intermediary.
A good example of this utility is performing cross-chain trades, such as Avalanche, Bitcoin, Ethereum, Harmony, Binance Smart Chain, and of course Polygon. Basically, you can connect your Bitcoin wallet and use Jelly Swap to exchange it for Ethereum, with no KYC, no centralization at all.
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The Sandbox, the metaverses are also in Polygon
Polygon also has a presence in metaverses built on the blockchain. The Sandbox is one of his star projects in this regard. The Sandbox is a virtual world built on the Ethereum blockchain that also runs on the Polygon network. It is a metaverse where gamers can create, own and monetize their gaming experiences. The utility token of the platform is known as SAND. It is one of the fastest growing metaverses in the blockchain ecosystem.
The Sandbox provides all the necessary tools to create your own world and represent everything by means of NFTs and rewarding them with the utility token SAND. Currently, games, ownership and centralized control limits the rights and ownership of users when they create their virtual worlds.
Sandbox is built on a Voxel platform where creators can create, play, share, collect, and trade without central control, enjoying secure copyright ownership, while gaining the ability to earn cryptocurrencies (SAND) .