Despite the ongoing fluctuations experienced by the crypto sector, Polygon keeps on expanding its market reach. Now, the stacking solution is joining hands with the Hop Protocol. The collaboration will see Polygon (previously Matic Network) releasing a $200,000 liquidity program. It will also connect the network with the multi-chain world.
Hop Protocol aims to connect the Layer-2 landscape to enable smooth asset transfer and composability between dApps on different blockchain networks. To achieve the same, the protocol offers a scalable token bridge, specifically for ETH’s scaling system with a two-step process:
- It creates a particular intermediary asset known as hToken. The token can economically and quickly move between different networks.
- In the next step, it uses AMMs (automated market makers) to switch between a hToken and their associated assets on different blockchain networks.
Hop Protocol even released a tweet highlighting how Polygon to ETH withdrawal is done in 1 m30 instead of 3 hours. The tweet also stated that Ethereum decentralized finance would become a multi-chain DeFi soon.
Liquidity plays a crucial role in any AMM, and Hop uses it to render high transfer volumes in and out of the Polygon network. The Hop Bridge is used to facilitate the same, and the latest development will release over $200,000 in rewards for liquidity providers.
The initial phase of liquidity mining will see Hop launch $200,000 worth of rewards delivered to the hUSDC – USDC LPs on the Polygon network. Polygon also plans to offer support rewards for liquidity providers that support the smooth transfer of Matic Coin between bridges.
The development marks a special place as it will allow Polygon users an impeccable experience. It will also fill the gap between Polygon and other blockchain networks in the ETH circuit.
Here is a brief of what the development will bring:
- Polygon (PoS) will be integrated as a supported network on Hop.
- Matic Coin will receive priority on Hop with the Plasma bridge.
- Liquidity providers on the Hop automated market maker with Polygon will receive rewards.
- Upcoming Polygon SDK chains will receive support from Hop.
Polygon is all set to release multiple ETH-connected chains very soon. Hop will be supporting the integration by allowing a smooth experience between such blockchain networks too. Polygon’s “internet of blockchains” is bound to be fulfilled, and Hop will play a crucial role in its realization.
Polygon keeps making giant strides in the market as it recently joined the Hop Protocol. The collaboration means Polygon will release a $200,000 liquidity program. The move will connect Polygon to other networks, and Hop will support Matic Coin as well. LPs associated with Hop AMM on the Polygon network will receive rewards as well. With Polygon aiming for an enhanced internet of blockchains, Hop will certainly lend its crucial support.