mStable Launches on Polygon, Hoping to Attract Defi Users ‘Priced’ for ETH

Defi-yield protocol mStable has become the latest to embrace second-tier scaling solutions and today announces implementation on Polygon (formerly known as Matic).

MStable’s interest-generating savings account, two of the ‘risk minimized metastable currencies’ and asset switching functions are now live on Polygon, giving the users a lower cost compared to the Ethereum mainnet implementation.

Polygon is a layer two network that processes transactions on its side chain before they are bundled into the next block produced by the Ethereum mainnet.

In an April 27 announcement, mStable highlighted the barrier created by the recent Ethereum gas crisis to the DeFi sector’s mission to democratize finance:

“With a savings rate close to zero in traditional finance, there is enormous latent demand for a safe, reliable and high-yield savings account. mStable Save was built to meet this demand, but unfortunately, given Ethereum’s recently skyrocketing gas fees, most users are priced. “

CEO James Simpson expressed his support for Polygon’s scaling solution, saying, “Polygon is scalable, offers almost free transactions, has attracted heavyweights from DeFi and with it billions in liquidity. This is all done while anchored to the Ethereum backbone and to its community. “

mStable also teased three major upcoming releases for the Polygon implementation, including liquidity incentives, free transactions in partnership with Biconomy, and a bridge between the Polygon and Ethereum mainnet versions.

The protocol’s implementation on Polygon is as an increasing number of DeFi protocols explore second-tier solutions, with Aave recently raising $ 1 billion in liquidity for its Polygon release within 10 days of launch.