Equilibrium announced Polygon integration in its efforts to offer cross-chain DeFi solutions for both users and projects of the Polygon Network ecosystem. Equilibrium will enable Polygon users to take advantage of the Equilibrium 2.0 platform’s innovations and benefits after the integration.
Developers will be able build scalable solutions with cross-chain interoperability. Communities of both sides will benefit from the integration.
Use cases for Equilibrium or Polygon integration
Polygon’s integration with Equilibrium offers unlimited benefits to both sides. MATIC holders, by example, will have the ability to use their tokens for Equilibrium borrowing assets. These assets can also be moved throughout the ecosystem and even traded on the decentralized Equilibrium Exchange.
Borrowers will need to have a low collateralization of 105% which is 20X the leverage.
Users will also have the benefit of diversifying the risk in volatile markets and receiving payable interest at the lowest rates. Users will be able even to sell their MATIC holdings with the same amount of Ethereum.
Equilibrium plans to increase its reward program for users following the integration. Users can easily earn an APY of between 10 and 20 %. Equilibrium users earn APY depending on the liquidity. The APY is higher if the provision is higher.
The network will allow users to earn interest by offering insurance. The insurance comes in handy when circumstances cause panic among the community members.
Polygon will reduce transaction fees by a fraction of cent following the integration. This will allow for more efficient movement of crypto assets and stablecoins among partners.
Aave, which is powered by Polygon, allows users to use their AAVE tokens to secure funds from Equilibrium.
JellySwap, Dfyn Network and JellySwap protocols will be integrated to allow users to transfer assets into Equilibrium in order to lock in pools of interest.
Currently, Equilibrium’s assets are moved through the Polkadot eco-system using the XCM Communications interpolkadot parachain. Equilibrium plans to expand its EQD liquidity and the EQ to Polygon Chain smart contracts compatible with ERC20 in the future.