Decentralized finance yield protocol mStable has become the latest to embrace layer-two scaling solutions, announcing its deployment on Polygon (formerly known as Matic) on Monda.
MStable’s interest-generating savings account, two of its “risk minimized meta-stablecoins” and its asset swapping features are now live on Polygon, offering users reduced fees when compared with its Ethereum mainnet deployment.
1/ mStable has launched on Polygon @mstable_ offers @0xPolygon users another source of USD and BTC liquidity, a DeFi-native savings account and two risk minimised meta-stablecoins.
— mStable (@mstable_) April 26, 2021
Get started: https://t.co/aLx10WWwEN
Learn more / Guide: https://t.co/e5G36VBJip
Polygon is a layer-two network that processes transactions on its sidechain before bundling them together into the next block produced o the Ethereum mainnet.
In a Monday announcement, mStable emphasized the barrier posed by Ethereum’s recent gas fee crisis to the DeFi sector’s mission to democratize finance:
“With savings rates at near zero in traditional finance, there exists an enormous latent demand for a secure, dependable and high yielding savings account. mStable Save was built to fulfil this demand, but unfortunately, given Ethereum’s recently sky-high gas fees, most users have been priced out.”
CEO James Simpson expressed his support for Polygon’s scaling solution, stating: “Polygon is scalable, offers nearly free transactions, has attracted DeFi heavyweights and with them billions in liquidity. This is all done while being anchored to the Ethereum mainchain and to its community.”
MStable also teased three major upcoming releases for its Polygon deployment, including liquidity incentives, free transactions in partnership with Biconomy, and a bridge between its Polygon and Ethereum mainnet versions.
The protocol’s deployment on Polygon comes as an increasing number of DeFi protocols are exploring second-layer solutions, with Aave recently attracting $1 billion worth of liquidity to its Polygon release within 10 days of launch.