One of the most vital scaling solutions for Ethereum at this time, Polygon, has recently launched a new liquidity mining program. This program was launched with the cooperation of Aave.
$40 Million For Liquidity Rewards
The team behind this mining protocol has even allocated a total of $40 million, dedicated for rewards to both borrowers and lenders. Of this $40 million, most of the solution comes from MATIC allocating 1% of its entire supply. Through this new liquidity mining protocol, users are capable of earning rewards through the use of Aave’s polygon market and the borrowing and depositing of assets.
Aave saw itself be launched on Polygon just last month, standing as part of an ongoing plan to increase the scalability of the Ethereum network’s DeFi space. Another important announcement of that move was the fact that Aave had joined an array of sidechains, as well, all in a bid to dodge the spectacular gas fees Ethereum is experiencing.
The Mandatory Public Statement
Stani Kulechov stands as Aave’s founder, and gave comment on the role Polygon has played in the increasing accessibility of the DeFi space. He stated through a press release that the entire point of DeFi was the creation of an inclusive, sustainable alternative to the traditional finance options. He warned that it doesn’t matter how great DeFi is if it’s limited to portfolios no smaller than five figures, which will see it fail the very mission it was built for: provide finance for everyone. Through Polygon, this future can be enabled, said Kulechov, as it increases the accessibility of DeFi to a wider global audience.
Sandeep Nailwal stands as the COO and co-founder of Polygon, and had added to the statement as well. He explained that he himself was quite excited to see Aave and Polygon join up, as both their communities share various values such as open-source development and the support of the Ethereum Ecosystem.
The Great Ethereum Gas Fee Dodge
Ethereum owns the lion’s share of the DeFi space, which doesn’t mean much when the gas fees are so high as to make it unusable for lower-income individuals. Through the use of Aave and protocols like it within the mainnet of Ethereum, hundreds of dollars of fees could be accrued thanks to the very complex way these smart contracts interact with each other.
As for MATIC rewards for this liquidity mining program, this will be distributed through two phases. The first phase will see Polygone pay out 0.5% of the total supply to liquidity providers, doing so until the 14th of June, 2021. Afterward, from the 14th of June to the 13th of April, 2022, Polygon will distribute the remainder 0.5%.