tl;dr Polygon Team’s proposal to deploy Abracadabra Money on Polygon PoS Chain on behalf of the community.
- Who is the interested party for this application?
- About Polygon
Polygon is the leading platform for Ethereum scaling and infrastructure development. It is rapidly building a product suite that will offer developers easy access to all major scaling and infrastructure solutions:
- L2 solutions/Rollups (Polygon Hermez, Polygon Miden, Polygon Nightfall);
- Sidechains, stand-alone and enterprise chains (Polygon SDK);
- Hybrid solutions (Polygon PoS);
- Data availability solutions (Polygon Avail) and more.
- Polygon is by far the most adopted scaling effort in the Ethereum ecosystem, with 3,000+ applications hosted, 1B+ transactions processed, 100M+ unique user addresses and ~$5B+ in assets secured.
This is Polygon Team’s proposal to Abracadabra Money to deploy to Polygon PoS Chain on behalf of the community.
We believe this is the right moment for Abracadabra to deploy on Polygon PoS, and for nation to enjoy the benefits of Polygon DeFi.
- Deploying to Polygon PoS can bring a lot of benefits:
DeFi projects that have so far deployed on Polygon PoS have experienced a number of significant benefits, some of which we will outline here.
User base growth: Many projects have significantly expanded their user base after deploying to Polygon PoS.
- Wallet Integrations: Polygon supports more than 50+ wallets and this can be of great help to help make make MIM the gateway between web2.0 and web3.0 by leveraging the blockchain with the highest number of daily active and unique users
- Aave reached 700k+ active users on Polygon PoS, roughly 10x more than on Ethereum L1;
- PoolTogether reached ~4k active addresses, roughly 40x more than on Ethereum L1
- Huge savings for users: With transaction fees being on average 1,000x lower than on Ethereum L1, Polygon PoS enables projects to save millions of dollars to their users. Two data points that illustrate this well:
- Aave users saved ~$42M+ in five months;
- SushiSwap saved its users ~$3M in one single week;
- Higher user activity: Low fees are subsequently encouraging users to interact more with the project; this is the case with almost every Ethereum L1 protocol that got deployed on Polygon PoS. Aave is a notable example here as well; their user activity increased ~16x compared to L1;
- Higher revenue: Projects coming from Ethereum L1 are often seeing higher revenue for their liquidity providers and governance DAOs. The reason is twofold:
- Market capture: Polygon PoS is at this point a very attractive and lucrative market to try to capture and capitalize from, likely right after Ethereum L1. Any major DeFi project that decides not to deploy on Polygon is obviously missing out on this opportunity and leaving a void that will certainly be filled by competitors.
- Alignment with the vision of Magic Internet Money and Nation
Return to the original DeFi vision #DeFiForAll x #OccupyDeFi
Polygon’s vision of #DeFiForAll and Nation’s #OccupyDeFi are very much aligned. We envision DeFi to be an open and inclusive financial system with equal opportunities for everyone which would provide financial freedom for all those who are a part of it.
As mentioned above, projects coming from Ethereum L1 normally significantly expand their user base. These new users are mainly people who were “priced out” from L1, i.e. unable to use these protocols because of high transaction fees.
About ~86% of all $MIM minted so far has happened on Ethereum at the time of writing. As a result a lot of users who want to be a part of the community get priced out due to the high cost involved in Ethereum. Deploying on Polygon would be a step forward towards $MIM being a truly decentralized and chain agnostic stablecoin, with many collateral types.
- Support from Polygon Foundation
Here are just a few of the ways we have supported every stage of development for more than 3,000 dApps already building on Polygon and will continue to do so. Polygon foundation is happy to help Abracadabra and the entire community to smoothly transition to Polygon and everything that comes after.
For all the reasons explained above, we believe the synergies between the two projects are obvious and it makes a lot of sense for Nation to support Abracadabra’s deployment to Polygon.
We have been aware of a significant level of interest within the community on discord and on the official forum to deploy Abracadabra on Polygon. One example is this post by @Bagholder_McFomo_III that received a lot of interest and support. We are certain that both communities know that this deployment is an obvious win-win and we strongly believe that this is the right time for this.
Author is part of the Polygon internal team.
We are looking forward to your questions and feedback.
The Proposal is now up for voting! Find it here.