Polygon to boost DeFi adoption with $100 million fund
|- Polygon's fund will focus on efficiently onboarding users to DeFi-related products and platforms.
- With rising gas fees on Ethereum, Polygon's fund hopes to attract users who have been priced out of entering into DeFi.
- The fund will continually support the DeFi ecosystem in the next two to three years.
Ethereum scaling project Polygon, previously known as Matic, has launched a fund to enable higher accessibility to decentralized finance (DeFi) for users.
DeFi users priced out by high Ethereum transaction fees
DeFi has grown significantly in the past year. The industry took off as users have flocked to DeFi in the summer of 2020. By June, the total value locked in the space reached $1 billion for the first time. Comparatively, the total assets locked in DeFi reached $65 billion today.
As a result of DeFi’s success, Ethereum transaction fees have shot up. High gas fees indicate an excellent sign for the long-term prospects of the network. However, it has also caused growing pains, as each transaction made on the Ethereum network could be quite costly.
While gas fees on Ethereum remain high, Polygon seeks to level the playing field for users who have been priced out of participating in the DeFi ecosystem with its $100 million fund. The fund, known as DeFiforAll, will introduce millions of users to decentralized products and platforms available. Sandeep Nailwal, co-founder and COO of Polygon, said:
Polygon is committed to making DeFi accessible to the next million users, and we hope to achieve this through the #DeFiforAll Fund. We want to support the top DeFi protocols on Ethereum and help them scale and grow with Polygon.
Citing the growth of active users on DeFi protocols like Aave and Curve, the fund will continue to build a robust interconnected ecosystem and support the DeFi industry over the next two to three years. Aave and Curve both migrated to Polygon, taking their client base with them to the network.
Polygon has seen enormous growth in user activity and transactions in recent months after rebranding from Matic Network. The increase in adoption and network activity has also influenced MATIC price to reach an all-time high at $0.87 on April 28.
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