Equilibrium has announced Polygon Integration as it aims to provide cross-chain DeFi solutions to both projects and users of the Polygon network ecosystem. Post-integration, Equilibrium will allow users to take advantage of the innovations and benefits of the Equilibrium DeFi 2.0 platform.
Developers will also be able to build scalable solutions that facilitate cross-chain interoperability and reap the benefits of community integration on both sides.
Equilibrium and Polygon Integration Use Cases
Integration of a polygon with a balance provides unlimited benefits to both sides. For example, MATIC holders will be able to use their tokens to borrow assets on Equilibrium and the borrowed assets can be transferred through the ecosystem and even on the decentralized exchange of balances. can also be exchanged.
Borrowers will require a low collateral of 105%, which is 20X leverage.
Additionally, users will have the advantage of diversifying the risk of volatile market and also get the interest payable at the lowest possible rates. Users will also have the opportunity to reduce their MATIC holdings using the same amount of ETH.
After the integration, Equilibrium plans to expand its reward program to users. Users will easily be able to earn an average of 10% to 20% APY. Users earn APY in balance based on the liquidity provided. Higher the provision, higher will be the APY.
Users will also be able to earn interest from their holdings by providing insurance to the network. Insurance comes in handy when circumstances create panic among the members of the community.
After the integration, Polygon will run transaction fees to a fraction of a cent for cheap circulation of both crypto assets and stablecoins between partners.
Ave, which runs Polygon, will allow users to borrow funds from Equilibrium with their AAVE tokens as collateral.
The integration will also allow JellySwap and Duffin Network Protocols to allow its users to transfer assets to Equilibrium to lock in pools to earn interest.
Currently, assets borrowed on Equilibrium are transferred between Polkadot parachains using XCM Communications to the Polkadot ecosystem. However, in the future, Equilibrium plans to have EQD liquidity and EQ to Polygon Chain in the form of ERC20 compatible smart contracts.