in Polygon (MATIC)
The project formerly known as Matic, the Ethereum scaling solution, is now the Polygon Network, and it exists very much as a thriving dApp ecosystem in its own right.
The Polygon team have spoken about their desire to become ‘Polkadot on Ethereum’, meaning that the platform is built across various sidechains and can support a large number of decentralized applications. This allows Ethereum to simply concentrate on being the ‘mainchain’ where the core computation happens.
In this article, as a celebration of the fact that Exodus now supports native Polygon assets, we’ll feature some of the most interesting dApps that have been built on the Polygon network. But first, let’s begin with a quick recap of the use cases of the network’s native MATIC token.
What is Matic coin?
At the centre of the Polygon network is the MATIC token.
The primary function of MATIC is for staking; users who wish to support the network's Proof of Stake consensus mechanism in exchange for rewards in MATIC can delegate their tokens to Polygon validators via Metamask.
This is because MATIC staking actually happens on the Ethereum blockchain, not on the Polygon mainnet. The transaction fees required to stake are payable in ETH, not MATIC, so the if you wish to stake MATIC, it should be done when Ethereum gas fees are low.
The MATIC token is also used to participate in the governance of the network, via Polygon Improvement Proposals.
dApps built on Polygon: SportX
One of the most popular dApp projects built on Polygon is SportX, which describes itself as the future of sports betting. Perhaps the main, disruptive feature of SportX is that players don’t bet against the house; they bet against each other.
Unlike most sports betting platforms, SportX is decentralized and uses smart contracts, so user funds are kept in escrow, no initial deposits are required, and outcomes cannot be manipulated or contested by in-house, centralized servers.
For this reason, the dApp is becoming one of the most popular betting platforms in the crypto space, with tournaments like the SportX World Tour taking place on the platform, and prize pools up to $50,000 DAI up for grabs.
SportX, like the Exodus Wallet, is simple to use, and for that reason we have re-integrated the dApp into Exodus via the Polygon Network. Exodus users can once again make bets directly from their wallets.
Payouts arrive back in the wallet immediately after the result. Bets can be made in USDC on Polygon, which is a faster and cheaper way of transacting than with the Ethereum-based USD stablecoin.
Note that the dApp is still unavailable in some jurisdictions.
dApps built on Polygon: ZED RUN
ZED RUN is also a Polygon-based gaming dApp with a difference. Gamers can breed, buy and sell NFT racehorses, with the goal of preparing them for racing. The horses have different “bloodlines” which determine their rarity, with examples being the Nakamoto, Szabo and Buterin bloodlines.
Winning races also increases the value of the horses, whilst successful players can go on to become “professional” breeders or racecourse owners within the ecosystem.
ZED RUN’s onboarding mechanism between Ethereum and Polygon has recently improved, with a native cross-chain asset bridge built for the platform by Web 3 architects Biconomy.
The growth of other popular NFT and gaming applications on Polygon, such as Chainguardians, CryptowarriorZ, and Battle Racers, suggests that gaming projects are being attracted to Polygon’s scalable blockchain solution and increasingly simple onboarding process.
dApps built on Polygon: EasyFi
EasyFi is a decentralized lending and borrowing platform that aims to accelerate the growth of DeFi by providing liquidity (enough assets to close any and all orders that traders wish to make) across the space at low cost and lightning speed.
The application is built across Polygon, Ethereum & Binance, and its “killer use case” is uncollateralized (and also undercollateralized) lending. This is novel in the crypto space because most lending platforms use overcollateralized lending mechanisms, where users must already have more money than they wish to borrow.
Undercollaterlized loans on EasyFi are supported via TrustScore - which you could think of as a sort of “credit rating” system on DeFi. Trustscore's inbuilt algorithms can automatically assess the “credit-worthiness” of any ERC-20 address once it has been whitelisted on the EasyFi platform.
A key difference between credit rating systems in traditional finance and DeFi is that customer data on DeFi is protected by the blockchain, and less open to leaks and company exploitation.
EasyFi also offers flexible, multiple asset yield farming services, traditional overcollaterlized loans, and airdrops for holders of the native EZ token.
dApps built on Polygon: Quickswap / DfynNetwork
Due to its instant settlements and low fees, Polygon is also an ideal platform for decentralized exchanges. Two Polygon-based DEXes, QuickSwap and DfynNetwork, are seeing monthly trading volumes in the billions.
Quickswap is similar to Uniswap, except that it allows users to swap ERC-20 tokens at lightning-fast speeds and almost zero-fees, and distributes liquidity mining rewards in its native QUICK token.
Dfyn also has a similar automated market maker design, but operates across multiple chains. Originally built on Polygon, it’s expanding to Binance Smart Chain, Polkadot, Algorand and Avalanche.
Polygon is fast becoming a destination of choice for applications which seek to grow their ecosystems by bridging to as many different blockchains as possible.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.