Understanding different Blockchains and their underlying ecosystem is quiet some work, this is why I've dedicated my time to feast your eyes with some deep-drive research on major blockchains and their Defi ecosystem.
Let's begin!!
In this article, I'll cover
- Polygon technology overview, Potential use case and it's token
- Polygon Defi ecosystem overview
- A Dex protocol overview (Meshswap)
- An Insurance Protocol overview (Esuro)
- A CDP protocol overview (Davos)
- A Derivative protocol Overview (Perp88)
- Closing (Summary)
POLYGON TECHNOLOGY
Matic network is a blockchain technology built to solve the scalability and usability issues attached to major blockchains, while not compromising on decentralization and leveraging the existing developer community and ecosystem.
It’s an off/side chain scaling solution for existing platforms to provide scalability and superior user experience to Dapps/user functionalities.
Outstanding features of the Matic network
- Transaction speed: The matic network is designed to solve the problem of slow transactions by using a high throughput blockchain consensus provided by a set of block providers.
- Transaction throughput: The Matic network solves the problem of low transaction throughput by using a block produce layer to produce blocks.
- Scalability: The Matic network is planned/expected to be able to easily add more side chains horizontally to increase the total number of transactions on the Matic chain while using the same transaction PoS layer
- Size or blockchain: The Matic network enables extremely low fidelity PoS nodes that can run in every low-cost machine with lower storage
- Multiple micropayment channels: Matic network solves the problem of micropayment by using a state bases architecture on the EVM which does not require payment channels to the opened between two parties
- Transaction fees: Thematic network enables low-cost transactions through achieving economies of scale by doing a large number of transactions on the block produce layer which ensure low cost.
- Dapp usability: The Matic technology is expected to work on various mobile and web browser integration tools and use pioneering protocols in the domain.
Potential Use Case
The Matic network is designed to provide a scalable and user-friendly ecosystem door to third parties' decentralized applications to them. Dapps built on a base layer chain can use magic to build and migrate their user-facing applications/transactions in the matic the matic network.
It’s designed to migrate and build the following Dapps
- Payments: provide an interface for users, payments, and SDKs to Dapps
- Atomic swap: allows users to pay with any Crypto token they prefer and micropayment in the asset they prefer
- Liquidity providers: third parties the the the the an use a a hematic a network to exchange any tokens for other tokens by leveraging the Ox liquidity pool.
- DEX: The network is expected to have key Dex characteristics such as faster and cheaper trades
- Lending & credit platforms: it enables Marchant to access creditworthiness if connected users via their transaction history
- Identity: The network has an open identity system
Other use cases Infrastructure,vgames and wallet.
Tokens
The native token is designed to be a utility token that functions as the unit of payment and settlement between participants who interact within the ecosystem.
It is also expected to provide economic incentives to encourage participants to contribute and maintain the ecosystem.
Polygon Defi ecosystem
The polygon network has a TVL of about $1.19b. A major protocol category that integrates/uses the polygon network is a decentralized exchange.
Top Dexs leveraging on polygon faster and cheaper transactions are as follows; Quickswap, Balancer V2, Uniswap V3, and Curve.
Let's explore a few protocols that are built into the polygon chain
DECENTRALIZED EXCHANGE (Meshswap)
Meshswap is a unique autonomous finance protocol that provides various revenue generation opportunities such as swap, lend, leverage farm, and stake on the polygon chnknewtworkwork which is isthee traditional finance.
Meshswap has a structure that combines the AMM ( Automated Market Maker) DEX business model prevalent in the Defi ecosystem with uniqueness.
Meshswap protocol features
- Trading: By paying a fee to the swapswapp protocol, traders can instantly swap tokens.
- Lending: lenders can easily and safely earn interest on MESH rewards by depositing their assets into the lending pools in Meshswap
- Liquidity providers: users can deposit a pair of two coins in the farming pool in exchange for yields and borrowers who boast-asset from the lending poolvee the farm to earn transaction fees.
- Staking: Users who lock up MESH for a certain period in exchange for rewards and liquidity voting rights.
Tokenomics
Total supply 126,144, 000 MESH
Initial supply 1,500,000 MESH
Initial distribution
Polygon on-chain user 26.67%
Matic holders 16.67%
Marketing 13.33%
VP holder 26.67%
Initial pair liquidity 3.3%
LP incentives 13.33%
Final distribution
Farm(single/pair/stake) 80%
Strategic partners 5%
Development 5%
Treasury 5%
VP holders 5%
Demand
Mesh token serves as a strong incentive given to ecosystem participants to provide more liquidity to mesh swap lenders, liquidity providers shakers are rewarded in MESH for their contribution to the ecosystem.
INSURANCE (Ensuro)
Ensuro is a blockchain protocol that provides capital coverage for insurance risk.
Ensure protocol defines insurance risk as a random variable between 0 and maximum payment defined in the corresponding policy.
The main objective of ensure is to guarantee that the protocol will be able to cover losses for the risk taken
The solvency capital comes from two source
- Pure premium; the part of the premium for the risk random variable estimated mean paid by the policyholder.
- SCR: The most of solvency capital (Unexpected losses) required to cover the risk with given confidence is backed by the eToken ( or liquidity pools)
CDPs (Davos)
Davos is the first chain lending and borrowing platform that offers users the opportunity to borrow the DAVOS stable asset, initially using their staked MATIC asset as collateral.
Davos intends to establish iIIs premium lending and borrowing interest rate in the polygon network. By offering an interest rate of approximately 2% APR and leveraging liquid staking to provide users with a lucrative investment opportunity.
Features
- Low liquidation: the liquidation mechanism that Davis protocol implements ensures that the TVL of the user’s collateral ever falls below the amount of DAVOS the user withdraws their position.
- Liquidity: DAVOS protocol plans to enable DAVOS and DGT holders to stake, swap, buy, sell, and place them into liquidity and farming pools in external Dexs
- Boosted vault: A boosted vault is a type of Defi vault that offers additional rewards beyond the regular return. The DAVOS boosted vault offers boosted rewards on top of frequent rewards as long as your crypto remains locked in the vault.
- Governance: The use of the DGT token will allow those who hold it to vote on changes to the Davos protocol.
Tokenomics
David is a fully crypto collateral stable asset that is soft pegged to the US dollar
DGT: The DGT token is the protocol's governance token with real-world assets. When a user takes out a Davos loan they receive DGT as a reward for engaging with the platform.
Token allocation
54% - borrowing and other incentives,
10% - Incubation
8% - private sale
8% - Team and Advisor
8% - Davos liquidity
6%- Strategic sale
3% - Seed round
2% - Marketing
1% - Public sale
DERIVATIVE (Perp88)
Perp88 is a decentralized perpetual & spot exchange operating on polygon perps that offers the following features to users
- Leveraged Trade (perp): users can open up to 88x leveraged long or short positions on the platform with zero slippage
- Swaps: Users can swap assets on the platform through the PLP fund with a 0% price impact
- Provide liquidity (market maker): Users can become market makers for traders at perp88 by depositing eligible assets to the PLP fund which functions as liquidity for leveraged and spot trades at perp88
Product
- Leveraged perpetual trading: prep88 supports leverage trading of BTC, ETH, and MATIC. Users can open a long/short position up to 88x of their collateral value
- 0% price impact swap: peeps offer 0% ok rice impact swap for assets in the PLP fund. By users swapping their assets at perp88, they won't have any price impact regardless of the size of their trade.
- PLP fund: is the Liquidity pool for prep88.
Tokenomics
PLP is the token users receive from depositing their asset into the PLP fund, the asset acts as the liquidity for swappers and leveraged trades at perp88
Utilities
- Holders of the token can earn 85% of the protocol revenue in the form of USDC when staked
- Accrues 100% of the profit for acting as the counterparty to traders or prep88.
Closing (Summary)
The polygon (matic) Defi ecosystem plays a vital role in the global adoption of major Defi primitive, due to her features such as low transaction fee, scalability and high transaction speed.
More Dex protocol are bound to erupt on the polygon network due to the above features.
Magic should also drive the adoption of web Dapps user interface.
We’ll stop here for now, I’ll continue to pay attention to the Polygon Defi ecosystem from time to time as we expect more better protocols with outstanding features and products.
