As part of its ongoing efforts to make the decentralized finance ecosystem more accessible through infrastructure development, this layer2 scaling solution has introduced a $100 million fund designed to lower the barriers to entry for yield farming and lending.
#Defiforall to Support Development Over Next 2-3 Years
Decentralized finance (defi) has emerged as one of the most explosive blockchain developments over the past year as new products and services offer a new means for token holders to monetize their crypto holdings.
The push has been so extreme that the total value locked (TVL) in defi protocols has crossed back above $60 billion, trending just shy of the record amount reached mere weeks ago. Yet, defi remains one of the most complex areas of the blockchain universe for newcomers as the steep learning curve and high capital requirements push more minor participants to the fringes.
Enter Polygon, an Ethereum scaling and infrastructure development solution. Formerly known as Matic, Polygon intends to transform Ethereum into a multi-chain ecosystem, or internet of blockchains, through its novel ability to construct and connect Layer 2 chains and sidechains. Polygon already plays an instrumental role in defi thanks to its role as a sidechain launchpad for Aave and Curve.
Now, Polygon aims to promote defi adoption by lowering the accompanying barriers. Its newly launched $100 million #Defiforall Fund intends to do just that by supporting the defi protocols endeavoring to reach this very goal.
According to Polygon Cofounder and COO Sandeep Nailwal,
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 see support for the top defi protocols on Ethereum scale and grow with Polygon.
Through the next two to three years, the fund will attempt to drive more mass-market adoption of defi protocols. Polygon has already demonstrated that defi doesnt have to be as capital-intensive after protocols launched on its sidechain experienced exponential user adoption rates.
Aave and Curve, in particular, have very successfully attracted participation from investors with smaller amounts of capital. Accordingly, with its long-term fund in place, the appeal of defi will likely continue to expand as the area‘s accessibility improves with Polygon’s support.